The Effect of the Capital Structure on the Efficiency of Stock Pricing - Analytical Research

Abstract

The research aims to know the effect of investment risks measured by the beta coefficient on the efficiency of stock pricing measured by the pricing error. The research was applied in the banks listed in the Iraq market for the period (2017-2020). That affects the value of the shares of the companies listed in it and the risks associated with it, as the capital structure is a dynamic process that changes over time depending on the variables that affect the general development of the economy, so these fluctuations should be taken into account when choosing the capital structure and companies seek to determine their financing structure Whether debt financing or equity financing is a critical decision for financial management, not only because of the need to maximize returns, but also because of the impact of risks and what is reflected in stock prices in the Iraqi stock markets. Through them, the following question was asked: Does debt financing and property rights contribute to affecting the efficiency of pricing? In light of this, the importance of the research and its objectives were determined, and the research methodology relies on the analytical method as it is more appropriate to the nature and scope of the research, in order to reach the results that the research aims at.