Determinants of Financial Performance: A Case from Oil and Gas Companies listed in the Iraq Stock Exchange
- Zaid Muayad Basheer , College of Administration and economics, Al-Farahidi University/Iraq
- Ahmed Majed Althahabi , Al-Manara College for Medical Sciences/ (Maysan)/Iraq
- Muqdad Hussein Ali , College of Media, department of journalism/ The Islamic University in Najaf, Najaf, Iraq
- Hussam Mohammed Wafqan , Accounting Department, Al-Mustaqbal University College, Babylon, Iraq
- Rand Abd Al Mahdi , Al-Nisour University College/ Iraq
- Mohammed Yousif Oudah Al- Muttar , Scientific Research Center, Al-Ayen University, Thi-Qar, Iraq
- Anmar Salman Bkhebukh , Mazaya University College/ Iraq
Keywords:
Return on assets, return on equity, earning per share, market to book value, Iraq..
Abstract
The purpose of this study is to examine the influence of return on equity (ROE), return on assets (ROA), leverage ratio (DTE), working capital ratio (WCR), and gross profit ratio (GRPM) on the earnings per share (EPS) and market to book value ratio (MBV) of Iraqi oil and gas firms listed on the stock exchange from 2010 to 2021. The STATA analytical tool uses multiple regression analysis to analyze panel data. Before regression analysis, following a diagnostic test, data normality assumptions, autocorrelation, multicollinearity, and heteroscedastic were performed, along with autocorrelation, multicollinearity, and heteroscedastic. ROA, ROE, GRPM, and WCR positively and substantially influence EPS and MBV. In contrast, DTE has a positive and significant influence on EPS but a negative and significant influence on MBV, as determined using regression analysis. The research findings could facilitate understanding the significance of EPS and MBV for investors' investment decisions and the influence of EPS and MBV on the oil and gas industry. Understanding the various financial considerations in the oil and gas sector enables professionals to make sound choices. Practitioners and others with decision-making authority could also benefit from understanding the significance of ratios to boost their investment in company shares.