Financial ratios and book value of shares for selected money transfer companies listed on the Iraq Stock Exchange

  • 179 Views
  • 70 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The study examined the nexus between the financial ratio and book value of shares for Iraqi money transfer companies. The data used was extracted from the financial reports of selected money transfer companies listed on the Iraq Stock Exchange, and a descriptive, correlation and panel least square regression technique were adopted for the analysis. The result revealed that the financial ratio captured by earnings per share (EPS), return on investment (ROI) and return on assets (ROA) were positively related with the book value of shares (BVAL), while debt ratio (DER) was negatively related with BVAL. Also, EPS, ROA, ROI and DER positively influenced BVAL. Thus, the engagement of competent and qualified personnel to manage the assets and investments in order to ensure optimal returns is urgently required. There is also a need for proper issuing of shares by the management of money transfer companies to ensure free access to the stock market.

view full abstract hide full abstract
    • Figure 1. Explanation of dependent and independent variables
    • Table 1. Descriptive analysis
    • Table 2. Correlation matrix
    • Table 3. Panel unit root test
    • Table 4. Panel least square regression estimate
    • Table 5. Hausman test (correlated random effects)
    • Table 6. Residual CD test
    • Conceptualization
      Sardar Shaker Ibrahim
    • Data curation
      Sardar Shaker Ibrahim
    • Validation
      Sardar Shaker Ibrahim, Verna Yearwood
    • Writing – original draft
      Sardar Shaker Ibrahim
    • Formal Analysis
      Odunayo Olarewaju
    • Investigation
      Odunayo Olarewaju
    • Methodology
      Odunayo Olarewaju
    • Supervision
      Odunayo Olarewaju
    • Resources
      Verna Yearwood
    • Software
      Verna Yearwood
    • Writing – review & editing
      Verna Yearwood