Determinants of Firm Market Value and Enhancement Strategies: An Integrated Theoretical Framework
DOI:
https://doi.org/10.67148/fahss-2026-234Keywords:
firm market value; determinants; corporate strategy; intangible assets; corporate governanceAbstract
Firm market value reflects the collective assessment of investors regarding a firm’s future prospects and serves as a critical indicator of corporate performance. Understanding the determinants of market value and identifying strategies for enhancement are central concerns in corporate finance and strategic management. Drawing upon resource-based view, signaling theory, stakeholder theory, and institutional theory, this study develops a theoretical framework to examine the multifaceted determinants of firm market value. The analysis identifies three categories of determinants: firm-specific factors (financial performance, intangible assets, corporate governance, human capital), strategic factors (innovation capability, market positioning, diversification strategy), and external factors (institutional environment, industry conditions, capital market development). The study further explores strategies for enhancing market value, including value creation strategies (innovation investment, human capital development, operational efficiency improvement), value communication strategies (information disclosure, investor relations management), and value protection strategies (corporate governance strengthening, risk management). The theoretical framework provides a foundation for understanding the complexity of market value determinants and offers implications for managerial practice and policy development.
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