The study based on a sample of 61 UAE listed companies examines the determinants of value creation. Size in terms of total assets of a firm is inversely related to value creation. Value as measured by market to book value of equity is negatively related to the size measured by total assets....

Despite accounting conservatism and indicating the firm's required return exceeds its return on equity, equity book values greater than market values (BTM 1) are not rare. The question we address is why. We find BTM 1 is pervasive and persistent. More importantly, BTM 1 is not attributable to...