Cuadernos de Economía

ISSN : 0210-0266
Untitled-43

The Influence of Internal Financial Factors on Share Price Trends of Companies Listed on Iraq Share Exchange

  • Batool Mahdi Salouhi , Faculty of Administration and Economics, Department of Finance and Banking, University of Babylon-Iraq
  • Jawad Kadhim Al-Bakri , Faculty of Administration and Economics, Department of Finance and Banking, University of Babylon-Iraq

Keywords:

Internal financial factors, liquidity, profitability, return on assets, sales growth, return on equity, share prices trend, Iraq stock exchange..

Abstract

Share prices are regarded as the most important sign of an organization's success, and various worldwide financial issues may influence them. This aspect deserves the attention of contemporary research, and this study investigates the effect of internal financial characteristics such as liquidity, profitability, return on assets (ROA), sales growth, and return on equity (ROE) on the share price trend of companies listed on the Iraq stock exchange (ISX). From 2016 to 2020, secondary data were extracted from the financial reports of the top twenty corporations ranked by the stock exchange and used in the study. Moments-Quantile-Regression (MMQR) methods were utilized to determine the relationship between the variables. The results demonstrated a favourable relationship between liquidity, profitability, ROA, sales growth, and ROE and companies' share prices on the Iraq stock exchange. The report aids regulators in formulating restrictions about using effective internal financial factors to boost share prices.