Optimizing Saudi bank stock performance through response surface methodology approach
One of the most effective methods for developing countries to increase their revenue is through the implementation of value-added tax (VAT). Nevertheless, market capitalization (MC) and trading volume (TV) are potent indicators of stock performance (SP). The objective of this paper is to determine t...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Asian Scholars Network
2024
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| Online Access: | http://psasir.upm.edu.my/id/eprint/117155/ http://psasir.upm.edu.my/id/eprint/117155/1/117155.pdf |
| _version_ | 1848867177791225856 |
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| author | Al-Otaibi, Mohammed Ibrahim Mohd Nor, Normaziah Yusri, Yusniyati |
| author_facet | Al-Otaibi, Mohammed Ibrahim Mohd Nor, Normaziah Yusri, Yusniyati |
| author_sort | Al-Otaibi, Mohammed Ibrahim |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | One of the most effective methods for developing countries to increase their revenue is through the implementation of value-added tax (VAT). Nevertheless, market capitalization (MC) and trading volume (TV) are potent indicators of stock performance (SP). The objective of this paper is to determine the optimum VAT, TV, and MC on SP of Alinma Bank (ANB) and Samba Financial Group (SFG) company in Saudi Arabia, for the first time. The event study method was implemented to determine the abnormal return for each event within a specific timeframe of 15 days. Response Surface Methodology (RSM) was employed to optimize the results. On the 4th day prior to the 5% applied VAT, the model predicted an optimal result for ANB company with 2.98% abnormal return, with a 0% VAT, 37.70% TV, and a 3.16% MC. In contrast, the model anticipated an optimal outcome for the SFG company with 2.55% abnormal return at 5% VAT, 168.93% TV and 9.85% MC on the 4th day prior to the 15% VAT raise. Additionally, this research determined that there is a correlation between the variables, which VAT has a higher impact than MC and TV on SP. |
| first_indexed | 2025-11-15T14:32:21Z |
| format | Article |
| id | upm-117155 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:32:21Z |
| publishDate | 2024 |
| publisher | Asian Scholars Network |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1171552025-04-29T08:06:57Z http://psasir.upm.edu.my/id/eprint/117155/ Optimizing Saudi bank stock performance through response surface methodology approach Al-Otaibi, Mohammed Ibrahim Mohd Nor, Normaziah Yusri, Yusniyati One of the most effective methods for developing countries to increase their revenue is through the implementation of value-added tax (VAT). Nevertheless, market capitalization (MC) and trading volume (TV) are potent indicators of stock performance (SP). The objective of this paper is to determine the optimum VAT, TV, and MC on SP of Alinma Bank (ANB) and Samba Financial Group (SFG) company in Saudi Arabia, for the first time. The event study method was implemented to determine the abnormal return for each event within a specific timeframe of 15 days. Response Surface Methodology (RSM) was employed to optimize the results. On the 4th day prior to the 5% applied VAT, the model predicted an optimal result for ANB company with 2.98% abnormal return, with a 0% VAT, 37.70% TV, and a 3.16% MC. In contrast, the model anticipated an optimal outcome for the SFG company with 2.55% abnormal return at 5% VAT, 168.93% TV and 9.85% MC on the 4th day prior to the 15% VAT raise. Additionally, this research determined that there is a correlation between the variables, which VAT has a higher impact than MC and TV on SP. Asian Scholars Network 2024-09-01 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/117155/1/117155.pdf Al-Otaibi, Mohammed Ibrahim and Mohd Nor, Normaziah and Yusri, Yusniyati (2024) Optimizing Saudi bank stock performance through response surface methodology approach. International Journal of Advanced Research in Economics and Finance, 6 (3). pp. 48-57. ISSN 2682-812X https://myjms.mohe.gov.my/index.php/ijaref/article/view/27525 10.55057/ijaref.2024.6.3.4 |
| spellingShingle | Al-Otaibi, Mohammed Ibrahim Mohd Nor, Normaziah Yusri, Yusniyati Optimizing Saudi bank stock performance through response surface methodology approach |
| title | Optimizing Saudi bank stock performance through response surface methodology approach |
| title_full | Optimizing Saudi bank stock performance through response surface methodology approach |
| title_fullStr | Optimizing Saudi bank stock performance through response surface methodology approach |
| title_full_unstemmed | Optimizing Saudi bank stock performance through response surface methodology approach |
| title_short | Optimizing Saudi bank stock performance through response surface methodology approach |
| title_sort | optimizing saudi bank stock performance through response surface methodology approach |
| url | http://psasir.upm.edu.my/id/eprint/117155/ http://psasir.upm.edu.my/id/eprint/117155/ http://psasir.upm.edu.my/id/eprint/117155/ http://psasir.upm.edu.my/id/eprint/117155/1/117155.pdf |