Vol. 20, N°1 (2025)

71

47

The role of banking stability in achieving market value and their reflection in financial market indicators

Résumé

This study aimed to know the impact of banking stability indicators on trading indicators (market value, return on share and closing price) of Iraqi banks listed on the Iraq Stock Exchange, as well as how this relationship is reflected in the financial market indicators for a sample of 15 banks for an extended period of time from (2019-2023). The panel data model (Penal Data) was used to measure the effects of banking stability on the indicators of banks listed on the Iraq Stock Exchange. The study found that there is an inverse relationship with moral significance between the financial liquidity indicator and the market value of Iraqi private banks listed on the Iraq Stock Exchange, which indicates that the high volume of cash liquidity in the bank means that the bank's investment policy is inefficient and therefore its inability to optimally employ the funds and deposits it holds, which negatively affects the volume of profits that the bank will obtain and the volume of traded shares and their closing prices, which leads to a decrease in their market value. There is a significant inverse relationship between the return on assets index and the market value of Iraqi private banks listed in the Iraq Stock Exchange. This means that the decrease in the return on assets leads investors to sell their shares of this bank, which leads to an increase in the supply of these shares and thus a decrease in their closing prices, which leads to a decline in their market value. There is also a significant direct relationship between the ratio of non-performing loans to total loans and the market value of Iraqi private banks listed in the Iraq Stock Exchange. There is also a significant relationship between the capital adequacy ratio index and the market value of Iraqi private banks listed in the Iraq Stock Exchange. There is also a significant direct relationship between the financial solvency index and the market value of Iraqi private banks listed in the Iraq Stock Exchange.

Comment citer cet article

احمد محمد جروان المولى وسهيل ذويب (2025) "دور الاستقرار المصرفي في تحقيق القيمة السوقية وانعكاسهما في مؤشرات السوق المالية" المجلة العالمية لإدارة الأعمال و التكنولوجيات، المجلد 20، العدد1 مارس، ص26-41.