Impact of Profitability on Stock Market Value: Evidence from Petrochemical Industry in Saudi Arabia

Journal of Administrative and Economic Sciences, Qassim University, Vol. 11, No. 2, PP 23-47. (Rajab 1439H/March 2018)

15 Pages Posted: 14 Mar 2019

See all articles by Munir Shawer

Munir Shawer

Middle East University

Ahmed Al-Ajlouni

Qassim University

Date Written: March 2, 2018

Abstract

The study explores the relationship between the profitability (measured by ROI, ROE and NPR)and the stock market prices of the Petrochemical Industry Firms in Saudi Arabia during the period 2008-2015.We used the multiple regression model to estimate the relationship between the independent variables and the dependent variable by using the Cross Section–Time Series (Panel Data).The study confirms that the stock prices of petrochemical companies listed in the Saudi Stock Market does not reflect the profit performance on the market price of the stocks. The affection trend on the profit performance is varied by different profitability measures.

Keywords: Profitability, Stock Price, Petrochemical Industries, Saudi Arabia, Stock Market

Suggested Citation

Shawer, Munir and Al-Ajlouni, Ahmed, Impact of Profitability on Stock Market Value: Evidence from Petrochemical Industry in Saudi Arabia (March 2, 2018). Journal of Administrative and Economic Sciences, Qassim University, Vol. 11, No. 2, PP 23-47. (Rajab 1439H/March 2018) , Available at SSRN: https://ssrn.com/abstract=3340338

Munir Shawer

Middle East University ( email )

Sabtieh
Boushrieh
Amman
Jordan

Ahmed Al-Ajlouni (Contact Author)

Qassim University ( email )

Qassim University, Saudi Arabia
College of Sciences and Arts
Buraydah, 52571
Saudi Arabia

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