The impact of diversifying financial investments on the market value of companies in light of financial performance indicators: an applied study on companies in the Saudi market
Article Sidebar
THIS IS AN OPEN ACCESS ARTICLE UNDER THE CC BY LICENSE
Main Article Content
Abstract
The research aims to measure and analyze the impact of diversification of financial investments on market value in light of financial performance indicators. The research included a sample of companies listed in the Saudi market for the period (2019-2023) from various sectors, where investment diversification was measured by two indicators: cash and total investments. The market value was measured through the market value to the book value, and the descriptive method was used in analyzing the research variables through the method of moments as well as the dynamic panel models due to its suitability in many positives, as it allows at the same time to estimate the effects in the short and long term and by relying on statistical programs such as(Eviews). The study concluded that there is no statistically significant relationship between diversification of investment in financial assets and market value under leverage. The study also demonstrated that there is no statistically significant relationship between diversification of investment in financial assets and market value under liquidity. The study also concluded that there is no statistically significant relationship between diversification of investment in financial assets and market value under company size. The study recommended increasing attention to investments to achieve rapid cash flow and financial returns, as well as maintaining an appropriate level of cash within the limits of efficient liquidity. This contributes to improving operational capacity and enhancing financial success, which reflects company value.
Downloads
Article Details
References
أولاً. المصادر العربية:
ايمان، عبد المطلب حسن المولى، (2018). أهمية المعرفة المالية في تأسيس الاستثمار في أسهم الأوراق المالية العربية. مجلة تكريت للعلوم الإدارية والاقتصادية،14(43).
رؤوف، زريان جبار، محمد، بايوان محمود، (2025). دور التحليل المالي على عناصر الاستراتيجيات المالية من خلال التركيز على تقييم الأداء المالي وتحديد التدفقات النقدية: دراسة تطبيقية على عينة من شركات الصناعية المدرجة في سوق العراق للأوراق المالية، مجلة تكريت للعلوم الإدارية والاقتصادية، المجلد 21، العدد 69، الجزء (2): 215.
محمد، شهد. بشار، ياسين، سمير طة، (2022). العوامل المؤثرة على القيمة السوقية لأسهم الشركات العراقية دراسة تطبيقية لعدد من الشركات العراقية للمدة من 2015 إلى 2020، مجلة تكريت للعلوم الإدارية والاقتصادية، المجلد 18، العدد 60، الجزء (2): 420-434.
محمود، مصطفى محمد، الصائغ، نمير امير جاسم، (2022)، العوامل المؤثرة في الأداء المالي لشركات الاستثمار وأثرها على القيمة السوقية والقيمة السوقية المضافة للفترة 2009-2020، مجلة تكريت للعلوم الإدارية والاقتصادية، المجلد 18، العدد 59، الجزء (2) 244-261.
معيوف، فاتن يونس، شعير، حاضر عباس، (2025). دور مؤشرات السيولة في تحقيق التعافي المالي: دراسة لعدد من المصارف التجارية العراقية المختارة. مجلة تكريت للعلوم الإدارية والاقتصادية، المجلد 21، العدد 69، الجزء (1): 213-225.
ثانياً. المصادر الأجنبية:
Aini, L. N., Sundari, J., Saputri, T. N., Nuryani, L., & Marie, F. E. (2024). The Influence of Financial Performance and Company Size On Company Value. Aurelia: Jurnal Penelitian Dan Pengabdian Masyarakat Indonesia, 4(1), 1428-1439.
Akbar, R. (2018). The Optimal Asset Allocation for Capital Preservation: An Evidence for Australian Portfolio. Journal of Business Administration 13 (1).
Araújo, F. B. D. B., Rogers, P., Peixoto, F. M., & Rogers, D. (2022). Asset diversification, financial well-being, quality of life, and mental health: a study in Brazil. Revista Contabilidade & Finanças, 33(90).
Bakhashwain, W. J., & Faleel, J. (2021). The Impact of Diversification On Firms Performance in Saudi Arabia. Palarch's Journal of Archaeology of Egypt/Egyptology, 18(13).
Cheung, C. S., & Miu, P. (2017). Bond laddering and bond indexing: An empirical comparison. Financial Services Review, 26(2), 181-20.
Chovancová, B., & Gvozdják, V. (2016). Investment Strategies for Bond Portfolio Optimization. Economic Review/Ekonomicke Rozhlady, 45(3).
DeGiorgi, E. G., & Mahmoud, O. (2016). Naive diversification preferences and their representation. arXiv preprint arXiv:1611.01285.
Duque-Grisales, E., & Aguilera-Caracuel, J. (2021). Environmental, social and governance (ESG) scores and financial performance of multilatinas: Moderating effects of geographic international diversification and financial slack. Journal of Business Ethics, 168(2), 315-334.
Faque, M. (2021). Cash management strategies and firm financial performance: A comprehensive literature review. Bussecon Review of Social Sciences, 3(4), 23-30.
Gitman and Zutter, (2018). Principles of Managerial Finance, (Seventh Edition), Pearson Education, United States of America.
Gusliana, S. A., & Salih, Y. (2022). Mean-Variance Investment Portfolio Optimization Model Without Risk-Free Assets in Jii70 Share. International Journal of Business, Economics, and Social Development, 3(4), 168-173.
Jayeola, D., Ismail, Z., & Sufahani, S. F. (2017). Effects of diversification of assets in optimizing risk of portfolio. Malaysian Journal of Fundamental and Applied Sciences, 13(4), 584-587.
Jordan, et al, (2018). fundamentals of investments valuation and management. McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121.
Kim, H., Batten, J. A., & Ryu, D. (2020). Financial crisis, bank diversification, and financial stability: OECD countries. International Review of Economics & Finance, 65, 94-104.
Lamina, I. A. (2024). Diversification and Risks Management: A Comparative Analysis of Norway's Government Pension Fund and China Investment Corporation. (Master's Thesis, University of Stavanger).
Makau, M. M., &Ambrose, j. (2018). The Impact of Portfolio Diversification on Financial Performance of Investment Firms Listed in Nairobi Securities Exchange, Kenya: Empirical Review. International Journal of Management and Commerce Innovations 5(2), (177-187).
Mohamed, I. (2016). Effect of financial leverage on financial performance of non-financial firms listed at the Nairobi securities exchange (Doctoral dissertation, University of Nairobi).
Myklebust, O. H., & Sylte, J. A. F. (2023). Short-Term Stocks, Long-Term Gains: Leveraging Implied Equity Duration in Portfolio Management (Master's thesis, Norwegian School of Economics).
Nwakanma, P. C., & Gbanador, M. A. (2014). Talmud and Markowitz Diversification Strategies: Evidence from the Nigerian Stock Market. Accounting and Finance Research, 3(2), 145-145.
Obamuyi, T. M. (2013). Factors influencing investment decisions in capital market: A study of individual investors in Nigeria. Organizations and markets in emerging economies, 4(7), 141-161.
Ogbuigwe, m, John, e, j & ACA, A., (2024). cashflow management and investment performance: a panel data analysis ofquoted industrial goods firms in Nigeria. International Journal of Humanities & social Science studies.
Paaca, N. M. (2021). Investment and the importance of investment in the European Economy-Comparative Analysis. “. Ovidius” University Annals. Economic Sciences Series, 21(2), 453-460.
Robert, C. H., Jennifer, L. K., & Todd, M. (2023). Analysis for financial management. (Thirteenth Edition). McGraw-Hill Education.
Safi and Mohi (,2024). An Empirical Study of Profitability Indicators, Asset Investment, and Their Impact on Stock Returns for a Group of Banks Listed on the Iraq Stock Exchange for the Period (2004-2022). International Journal of Religion. Volume: 5, Number 8, pp. 647 – 657.
Sujan, N., & Govil, M. (2013). International Diversification–Can It Reduce Systematic Risk? Quest-Journal of Management and Research, 3(2), 81-92.