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The Significance of Retained Earnings Based Firm Valuation Model during Military Regime Era in Pakistan |
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| รหัสดีโอไอ | |
| Creator | Syed Muhammad Ali Tirmizi, Muhammad Yar Khan, Naeem Ullah, Mehboob Ahmad, Syed Mutahir Hussain Shah |
| Title | The Significance of Retained Earnings Based Firm Valuation Model during Military Regime Era in Pakistan |
| Contributor | - |
| Publisher | TuEngr Group |
| Publication Year | 2564 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 12 |
| Journal No. | 10 |
| Page no. | 12A10H: 1-11 |
| Keyword | Retained earnings, Firm value, Shareholders' wealth, Investment, Reinvestment, Listed manufacturing firms, Pervez Musharraf era. |
| URL Website | http://TuEngr.com/Vol12_10.html |
| Website title | ITJEMAST V12(10) 2021 @ TuEngr.com |
| ISSN | 2228-9860 |
| Abstract | An empirical evaluation of the adopted but a modified version of the firm valuation equation has been conducted to test the retained earnings-based firm valuation model including retained earnings, firm value, and shareholders' wealth as variables. The impact of retained earnings on firm value and shareholders' wealth as well as firm value on shareholders' wealth has been evaluated by using primary data collected randomly from 85 listed manufacturing firms using a questionnaire. The alpha score of .866 has been generated relating constructs of the research instrument. Furthermore, factor analysis and ordinary least squares regression has been used to test study hypotheses. Study findings suggested that retained earnings have played a vital role in the expansion activities and benefited sample firms in achieving desired growth. Moreover, the value of sample firms enhanced and shareholders' wealth maximized due to investment and reinvestment of retained earnings in value-enhancing projects. Thus, results have applauded the Musharraf government and concomitantly validated the strength of retained earnings-based firm valuation model. |
