The relationship between investment intensity and profitability measures from the perspective of foreign investors

Abstract Investment intensity is the level of investment in fixed assets that affects a company’s long-term growth prospects. In order to make good decisions, investors pay more attention achieving high intensity. This study examines impact two non-GAAP measures profitability—earnings before interest, tax, depreciation, and amortization earnings interest tax—on Gulf Cooperation Council (GCC) member countries. The also preference for profitability from perspective foreign investors. conducts panel data regressions using 205 firm observations covering period 2010–2019 examine relationship between depreciation amortization, used various statistical estimators overcome heterogeneity endogeneity problems employed many diagnostic tests increase robustness. finds are positively significantly associated with all GCC countries, but tax negatively these results indicate prefer use decisions about main implication capital market regulators should information as guideline improve achieve better allocation resources markets.