The Mediating Role of Profitability in the Impact Relationship of Assets Tangibility on Firm Market Value

The study objects for investigating whether assets tangibility of the listed mining and extraction firms at Amman Stock Exchange, affects the market value of these firms, and whether firm profitability mediates the impact relationship of assets tangibility on firm market value. To achieve the objectives of the study, secondary data, covering the period 2013-2022, of the entire listed mining and extraction firms, had been collected and used in the analysis. Tobin’s Q, is used as a good indicator for firm market value, while return on assets, is used as a common indicator for firm profitability. Assets tangibility is the percentage relationship of tangible fixed assets to total assets. Employing both, the single and multiple linear regression methods, the results showed a significant impact of assets tangibility on firm profitability and firm market value. The results also demonstrated that firm profitability has a significant impact on firm market value. In addition, the results revealed that firm profitability mediates the effect of assets tangibility on firm market value. More research is recommended to investigate this relationship in other industries.