https://doi.org/10.26706/jpie.4.2.20230902

Abstract:

The current study's goal was to ascertain the market's impact on profitability and liquidity metrics.Shares of commercial banks are worth. by disclosing This study was conducted in order to better understand the relationship between certain profitability and liquidity indicators that are important for determining a bank's capacity to create value. These indicators include the return on equity index, the return on assets, the ratio of cash assets to current liabilities, the ratio of total loans to total deposits, and the market value as determined by the closing price.and in order to achieve the goals and hypothesis of the research, it was Selection of a bank (Middle East Commercial, National Commercial, Iraqi Islamic, Baghdad Commercial, National Islamic, Elaf Islamic) and relied on the financial data of the research sample banks, and in order to process the data, Financial equations and statistical techniques were used, and the results were extracted using the program (SPSS.V.23), relying on the multiple and simple regression method to test the research hypotheses. The first main hypothesis' results showed a strong correlation between profitability indicators (ROE, ROA) and the market value index of the share price by about 77%, and the first sub-hypothesis' results showed a significant relationship between pro While the second key hypothesis' findings revealed a substantial correlation of roughly 88% between liquidity indicators and the share price's market value index, and the first sub-hypothesis' findings revealed a correlation between profitability measures of roughly 29% and 57%, respectively, which was considered significant. The study produced a number of conclusions, the most significant of which is that there is no significant relationship between the first main hypothesis and the first and second sub-hypotheses, nor between the second main hypothesis and the first and second sub-hypotheses, despite the fact that there is a correlation between the variables because the significance is higher than the 0.05 threshold assumed by the researcher in both hypotheses. Even though the share's book value is one dinar, the researcher advised commercial banks' management to stop issuing shares because they trade for less than that amount.

Index Terms:

Management, profitability, stock exchange, market share, commercial bank

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