Financial Drivers of Corporate Market Valuation: Evidence from Global Publicly Listed Companies
Keywords:
Corporate market valuation, profitability, sales, financial market, global corporationsAbstract
Market Value of a firm is a key measure of a company’s health, investor optimism, and prospects in international financial markets. It is essential to know the financial determinants of market value. This study examines the influence of sales, profit, and assets on corporate market value among globally listed companies and explores country-level differences in valuation patterns. A quantitative, cross-sectional research design was employed using secondary financial data from 2,000 publicly listed corporations across 57 countries. The analysis used descriptive statistics, Pearson correlation analysis, multiple linear regression, and country-level comparative analysis. The findings revealed that profit showed the strongest positive association with market value and emerged as the most influential predictor in the regression model. Sales also had a positive and statistically significant effect, although its explanatory strength was weaker than profit. Assets showed a weak correlation with market value and a negative coefficient in the regression model, indicating that larger asset bases do not necessarily translate into higher market valuation. The model explained approximately 69.6% of the variation in market value. The findings suggest that profitability remains the most important financial driver of corporate valuation, while efficient resource utilization and earnings quality play a critical role in shaping investor perceptions and market performance.
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