Predicting the Market Value of Shares Using Financial Data: A Study from the Iraqi Stock Exchange

S.S. Rahi AL-Hisnawy , A.A. Shareef Al-Morshed
European Research Studies Journal, Volume XXI, Special Issue 2, 754-766, 2018
DOI: 10.35808/ersj/1301

Abstract:

The objective of the study is to identify the importance of financial data and its role in forecasting the market value of listed companies in the Iraqi Stock Exchange. The independent variables of the study model were the book value of the shareholders' equity in the company, as well as the size of the company as measured by sales, the return to shareholders' equity and the rate of growth in return on equity. The study used the multiple regression model to demonstrate the effect of this financial information on stock prices. The results of this study, based on data of 21 companies for three years, indicate the positive and strong relationship between independent variables and the dependent variable in 2012 and the weak positive relationship for the years 2013 and 2014. The study showed that the majority of these financial variables did not significantly affect the level of market prices of these companies, except for the growth rate of the return to shareholders' equity in the company, which had an important and positive effect on the market value of the company's shares for the year 2012.


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