The impact of key accounting variables on firm valuation of listed companies in Hong Kong

This study contributes to the Finance literature, especially relating to corporate valuation, share investment behavior and corporate strategic planning in relation to market capitalisation maximization. The study identified the significance of the impact from revenue and Industries on market capitalisation. Such findings rarely occur in former studies. The finding of the significance of the revenue factor in the Banks and the Industrials offers strong motivation to conduct further research on these industries. By understanding how investors respond to the change in key accounting variables, in particular revenue of specific industries, companies could make reference in their strategic planning for maximization of market capitalisation. Moreover, the study identified and proved the significant relationship in several key accounting variables affecting market capitalisation. In particular, the impact of net income and shareholder's equity.