Homework 2

Please collect 20 articles closely related to your topic. You will have to write Chapter 2:
Review of Literature starting with at least five articles by Feb 7, 2024. Please send it to me
in MS Word format, font “Times New Roman” size 12, line spacing 1.5 and page margins 1
inch on each side and don’t use any borders. The file should be at least three pages.
After I make corrections to this file of 5 articles, you will have to add remaining 15 article to
complete Ch 2.
Discuss each article in one paragraph. In the review of an article you should include its
main area of research, country/company of study, dependent and independent
variables, methodology, main results and comparison of its results with other studies.

Please keep the following points in mind.

1) The article should be published in a research journal and should be closely related to your
topic. The dependent variable of the article should be same as dependent variable in your
model.
2) No Arabic language article. (Exception for Saudi Data)
3) One article related to Saudi data should be included (better if in English otherwise in
Arabic).
4) Do the spellcheck before submission. Take help from a professional editor if your English
is very bad.
5) The list of references should be given at the end of the file in alphabetical order and
following the proper referencing style. There are different referencing styles like Harvard
(attached), Chicago, etc. Whatever style you follow should be done for all references.
An article reference comes as: Last name of author, First letter of first name, Year, Title,
Journal name (Italic), Vol., No., Page numbers, etc. You can write the link to the article after
that.
7) Before the references, summarize the studies in a table in 6 columns as follows:

Main Results Econometric Independent Dependent Author Name, No

Technique Variables Variable Year, Title

Common Mistakes in a Review:

Don’t give title to each paper reviewed. No bullets or numbering (It should be a continuous
writing in paragraphs).
Don’t write the title of article in the review.
For example: Objective of study by Ford (2017) is to analyze the effect of interest rate on
money demand for Belgium using the data from 1985 to 2019.
Don’t write full names(s) of author(s) in the review. [Write only the last name(s) followed by
the year of publication in parenthesis. If there are more than two authors, write for example:
Brownell, et al. (1985)].
Don’t just summarize articles (Analyze the strengths and weaknesses of the paper relative to
the research statement of your study).
Avoid copy paste.
Try to include latest empirical articles on the topic.
Exception: Classical Articles

Consistent Findings:

 Dividend policy has a positive effect on capitalization when based on the

residual principle (Ivan Eryomin, O.N. Likhacheva, Lyudmila Chernikova, 2021).
 Capital structure positively affects firm value (Wahyu Leman, Iman S.
Suriawinata, Irvan Noormansyah, 2020).
 Capital structure is the most influential factor on firm value (Ahmad
Mohammad Obeid Gharaibeh, Adel Mohammed Sarea, 2015).
 Size and profitability positively affect enterprise value (Dang Ngoc Hung, Vu
Thi Thuy Van, Ngo Thanh Xuan, Hoang Thi Viet Ha, 2019).
 Company size, sales growth, and profitability have a positive effect on firm
value (I Gusti Nyoman Sintya Adnyani, I Gusti Ngurah Agung Suaryana, 2020).
 Financial leverage has a negative effect on firm value (Al-Slehat, Z., 2019).

Inconsistent Findings:

 Dividend policy has a negative and significant effect on firm value in some
studies (Lihard Stevanus Lumapow, Ramon Arthur Ferry Tumiwa, 2017).
 Mixed results regarding profitability, capital structure, and firm size across
studies (Pradika, A., & Dwiati, A. R., 2021).
 Mixed findings on the impact of profitability, liquidity, and firm size on firm
value (Hapsoro, D., & Falih, Z. N., 2020).
 Mixed results regarding the effect of profitability, leverage, and liquidity on
firm value (Markonah Markonah, Agus Salim, Johanna Franciska, 2020).
Ivan Eryomin, O.N. Likhacheva, Lyudmila Chernikova (2021). The results of the study
indicate that dividends have a positive effect on capitalization only when the policy is based
on the residual principle.
This study is consistent with what was achieved in this study of the existence of a positive
impact of the dividend distribution policy on the market value of Saudi banks listed on the
Tadawul. Also found study disagree with our result regarding to dividend policy which
Lihard Stevanus Lumapow, Ramon Arthur Ferry Tumiwa Year: 2017 found the Dividend
policy has a negative and significant effect on firm value; firm size has a positive and
significant impact on firm value; company productivity has a positive and significant impact
on firm value.

Wahyu Leman, Iman S. Suriawinata, Irvan Noormansyah (2020) this study show positive
affect of Capital structure on firm value, while profitability and company size have negative
effects on firm value. Ahmad Mohammad Obeid Gharaibeh, Adel Mohammed Sarea. 2015
result: The capital structure is the most influential factor on firm value, as it is considered the
most impactful factor on firm value. The study also shows that other factors such as business
risk, previous year's return on assets, dividend payout ratio, firm size, growth opportunities,
and firm liquidity have a significant impact on firm value. The results of this study agree with
regard to the capital structure variable and do not agree with regard to the size variable.

Our results are not consistent with the findings of Hani Almahadin & Yazan Oroud. 2019
The study demonstrates the presence of a negative relationship between capital structure and
firm value in Jordan. It confirms that the impact of capital structure appears to be complex
and difficult to understand without controlling for the interaction with profitability as a major
determinant.

Dang Ngoc Hung, Vu Thi Thuy Van, Ngo Thanh Xuan, Hoang Thi Viet Ha (2019) found that
size and profitability positively affect enterprise value which is consistent with the results of
our study, while capital structure has a negative impact. Not consistent with the results of our
study we reached through this study on Saudi banks listed on the Tadawul, and through the
we found a positive effect of the capital structure on the market value of Saudi banks.

Pradika, A., & Dwiati, A. R. (2021) found that profitability, capital structure, and firm size
positively influence firm value, while liquidity has no effect. We do not agree with the results
of this study regarding the positive impact of the aforementioned changes, nor do they differ
regarding the impact of liquidity.

Hapsoro, D., & Falih, Z. N. (2020): The study found that firm size and liquidity have a
notable positive impact on firm value, while profitability, although positively associated with
firm value, does not reach statistical significance. The carbon emission disclosure moderates
 the relationships between firm size, profitability, and firm value, but not the relationship
between liquidity and firm value.

Comparatively, in the current study, while liquidity had a positive effect on firm value, it was
not statistically significant. Similarly, profitability showed a positive effect, but not
statistically significant. Hence, both studies exhibit similarities in their findings regarding the
effects of liquidity and profitability on firm value, despite differences in statistical
significance.

Al-Slehat, Z. (2019): The study by Al-Slehat (2019) found a negative effect of financial
leverage on firm value, aligning with the results of the current study on Saudi banks.

This comparison shows consistency in the negative effect of financial leverage on firm value
across both studies.

Markonah Markonah, Agus Salim, Johanna Franciska.2020 Found Profitability (ROA) and
leverage (DER) have a significant positive effect on firm value (PBV), indicating that an
increase in profitability and leverage leads to an increase in company value. However,
liquidity (CR) does not show a significant effect on firm value, suggesting that changes in
liquidity levels do not significantly impact the company's value.

These results are not consistent with our results in terms of financial leverage

I Gusti Nyoman Sintya Adnyani, I Gusti Ngurah Agung Suaryana (2020): This study
demonstrates a positive effect of company size, sales growth, and profitability on firm value.
Similarly, my study findings align with the positive impact of size on the market value of
Saudi banks
1.