The effect of financial robustness indicators on stock returns: An analytical study of a sample of Iraqi private banks listed in the Iraqi Stock Exchange for the period (2005-2021)

Abstract

The research aims to demonstrate the effect of financial robustness indicators on stock returns in the banking sector. The research sample consisted of eight commercial banks listed in the Iraq Stock Exchange through their annual reports published in the Iraq Stock Exchange. These banks are (Baghdad, Iraqi Commercial, Investment, Sumer, The Middle East, the Iraqi National Bank, the Credit, The Commercial Gulf). For the period 2005-2021, using the statistical program [Microsoft Excel vs.10, Eviews V.12]. The research extracted a set of results, including the presence of a significant effect of indicators of financial robustness in Stock returns with the existence of a close relationship between financial robustness and stock returns, as it is not possible to achieve a rise in stock returns without the availability of financial robustness. The research concluded that the commercial banks, the research sample, vary in indicators of financial robustness. In light of this, the research came out with a number of recommendations, the most important of which is the need to adhere to measuring financial robustness indicators issued by the authorities concerned with banking guidance.