International Journal of Accounting and Management Sciences (IJAMS)
DOI https://www.doi.org/10.56830/IJAMSSI01202519
Author
Rabab Hamdi Jamil
Abstract
This research aims to measure the impact of biological assets on the value of the firm using the accounting financial performance and market financial performance of companies listed on the Egyptian Stock Exchange. The study sample consists of 6 companies listed on the Egyptian Stock Exchange whose financial statements contain biological assets during the period from 2014 to 2023. Accounting performance was measured by both profitability and earnings management indicators in these companies. Profitability indicators were measured by the return on assets rate and the return on equity rate, and earnings management was measured using the modified Jones model, while the market performance of these companies was measured by the value of the firm using Tobin’s Q index and the market value to book value. The results of the study were reached by using the OLS least squares method. The study found that there is a significant inverse effect of biological assets on accounting financial performance through profitability indicators represented by the return on assets rate and the return on equity rate, while there is a non-linear effect of biological assets on accounting financial performance through earnings management. On the other hand, there is a significant non-linear effect of biological assets on market financial performance through the Tobin’s Q index and the market value to book value index, therefore biological assets affect the value of the firm.
Keywords: Biological Assets, Value of the Firm, Accounting Financial Performance, Market Financial Performance
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