Measuring the added value of Iraqi commercial banks in the formal market using Tobin's Q

Abstract

The aim of the research is to analyze accounting performance evaluation indicators using a relatively modern tool (Tobin's Q) to calculate the added value, and to go beyond traditional accounting tools (return on equity rate), as well as to point out the implications of this measure as an indicator for evaluating performance and using it to interpret the added market value as one of the most effective tools for evaluating banking activity. The banking sector was adopted as one of the most important sectors (and even the most interactive) in the Iraqi market, as ten Iraqi banks listed in the regular market were calculated for the period from 2016 (the year of adopting international accounting standards) until 12/31/2023. The results of applying the (Tobin's Q) scale test indicated a direct relationship between the added market value and (Tobin's Q) for private Iraqi banks. The results also indicated the weakness of the added market value for the majority of banks, and that their growth is very slow despite the increase in their total assets to a degree higher than their market value.