The Effect of B2B Business Model Adoption on Investor Valuation: Evidence from Iranian Private and Public Corporations

Younes Parvareh; Peyman  Sayadi; Leila  Sadeghkhani; Edris  Najafi; Kiasa  Darabi

Authors

Younes Parvareh Department of Accounting, Ker.C., Islamic Azad University, Kermanshah, Iran https://orcid.org/0009-0000-7590-2509
Peyman Sayadi Department of Accounting, Ker.C., Islamic Azad University, Kermanshah, Iran Author https://orcid.org/0009-0001-6745-9831
Leila Sadeghkhani Department of Accounting, Ker.C., Islamic Azad University, Kermanshah, Iran Author https://orcid.org/0009-0004-9556-6003
Edris Najafi Department of Accounting, Ker.C., Islamic Azad University, Kermanshah, Iran Author https://orcid.org/0009-0005-2082-1839
Kiasa Darabi Department of Accounting, Ker.C., Islamic Azad University, Kermanshah, Iran Author https://orcid.org/0000-0003-3155-9520

Keywords:

B2B business model, investor valuation, firm value, fixed-effects regression, ownership structure, Tehran Stock Exchange, private corporations, public corporations

Abstract

This study aimed to examine the effect of business-to-business (B2B) business model adoption on investor valuation among Iranian non-financial corporations and to determine whether this relationship differs between privately controlled and state/publicly affiliated firms. This quantitative longitudinal study used panel data from 120 non-financial corporations listed on the Tehran Stock Exchange during 2010–2024. After excluding incomplete firm-year observations, the final dataset comprised 1,706 observations. Investor valuation was primarily measured using the market-to-book ratio, with Tobin’s Q employed as an alternative robustness measure. B2B business model adoption was identified at the firm-year level based on corporate disclosures concerning customer composition, revenue structure, sales channels, and principal business activities. Firm size, profitability, financial leverage, sales growth, and liquidity were included as control variables. Firm fixed-effects regression models with year fixed effects and firm-clustered robust standard errors were used to estimate the relationship between B2B adoption and investor valuation. Additional robustness analyses employed lagged B2B indicators, alternative valuation measures, and interaction models for ownership structure. B2B business model adoption had a significant positive effect on investor valuation in the fully adjusted fixed-effects model (B = 0.278, SE = 0.081, p < .001). Profitability, firm size, sales growth, and liquidity were positively associated with valuation, whereas financial leverage had a significant negative effect. Robustness analyses confirmed a positive effect of B2B adoption on Tobin’s Q (B = 0.164, SE = 0.048, p < .001). Lagged B2B adoption also significantly predicted subsequent market-to-book valuation (B = 0.241, SE = 0.086, p < .01) and Tobin’s Q (B = 0.137, SE = 0.052, p < .01). The interaction between B2B adoption and private ownership was positive and significant (B = 0.191, SE = 0.088, p < .05), indicating a stronger valuation effect among privately controlled firms. B2B business model adoption is positively associated with investor valuation among Iranian listed corporations, and this effect is stronger in privately controlled firms, suggesting that investors value the relational, revenue-stability, and strategic characteristics of B2B-oriented business models.

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