Effect of profitable indicators on the market price of shares in the Baghdad Stock Exchange and the Iraqi Commercial Exchange

Abstract

The research aims to test the effect of profitability indicators expressed in net profit, rate of return on investment, rate of return on equity, and rate of return per share on the market value of shares in the Bank of Baghdad and the Commercial Bank of Iraq, by using a quantitative approach to measure the effect of profitability indicators on the market value of the two banks above. Reaching a number of conclusions, the most important of which is: There is a clear discrepancy in the impact of profitability indicators on the market value of shares in the Bank of Baghdad compared to the Commercial Bank of Iraq in terms of the amount of impact for each of the approved indicators, which is normal. But the difference is in the nature of the effect, some of which are consistent with the operative part of economic theory, as is the case with the net profit being influenced by the market value in the Bank of Baghdad, unlike what is the case with the Commercial Bank of Iraq, which contradicts the operative part of economic theory, and the matter applies to some other indicators.