Abstract

Objectives: This study aimed to clarify the impact of financial indicators on attracting indirect foreign investment in the Saudi Stock Exchange during the period (2019-2023), focusing on stock indices, as they are among the most widely used financial indicators for measuring financial performance and for their role in enabling investors to make sound investment decisions. Methods: The study adopted a quantitative analytical approach using simple linear regression and multiple linear regression. Results: The results also showed a strong, statistically significant positive correlation between all these indicators and net indirect foreign investment in the Saudi Stock Exchange. The practical importance of these results lies in their potential use by decision-makers, financial market regulatory bodies, and investors in developing policies that enhance the market's attractiveness to foreign investment and in making sound investment decisions. Conclusions: The study found statistical evidence supporting a statistically significant positive impact of financial indicators measured by the earnings per share (EPS) ratio, the price-to-earnings (P/E) ratio, and the price-to-book (P/B) ratio on net indirect foreign investment in the Saudi Stock Exchange.