The Impact of Value Indicators on Stock Prices An analytical study of a sample of commercial banks listed on the Iraq Stock Exchange For the period 2018-2023

Abstract

The study aimed to examine the impact of value-added indicators on stock prices in commercial banks listed on the Iraq Stock Exchange. The research sample consisted of a random sample of (10) banks, representing (48%) of the study population, over the period from 2018 to 2023. Monthly data were used, covering a total of (72) months. Two main hypotheses were tested. The first hypothesis assumed that there is no statistically significant effect of value indicators on stock returns, while the second hypothesis assumed that there is a statistically significant effect of value indicators on stock returns. To test these hypotheses, simple regression analysis was employed. The empirical results indicated that both book value and market value added (MVA) have a statistically significant effect on stock returns at a 5% significance level. Accordingly, the findings suggest that value indicators constitute key determinants of stock prices, as they reflect investors’ evaluation in the stock market of management efficiency in utilizing company resources and improving financial performance. The study also reached an important conclusion that market value added is a significant indicator for investors in interpreting stock prices. Furthermore, the study emphasized the importance of considering other indicators that may have an effective influence on stock prices, such as the number of traded contracts, the value of traded shares, and stock turnover volume.