The Role of Corporate Financial Stability in Maximizing Shareholder Wealth: An Empirical Study of a Sample of UAE Companies for the Period (2013–2023)
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Abstract
The study aims to analyze the role of financial stability in maximizing shareholder wealth through an empirical investigation of a sample of UAE companies listed on the Dubai and Abu Dhabi financial markets during the period (2013–2023). The importance of the study stems from highlighting financial stability as one of the fundamental pillars of corporate sustainability and its role in enhancing firms’ ability to generate market value added for shareholders. The study adopted a descriptive-analytical approach, utilizing the Altman Z-Score model to measure the level of financial stability and the Market Value Added (MVA) indicator to assess shareholder wealth maximization.
The results revealed a positive relationship between corporate financial stability and shareholder wealth maximization. Companies characterized by balanced capital structures and stable levels of liquidity and profitability tend to achieve superior market performance and receive higher valuations from investors. This reflects the critical role of effective financial management in strengthening financial stability and transforming it into tangible market value that contributes to maximizing shareholder wealth in the long term.
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