Fama-French Modified Form Test                        An applied study in the Iraqi stock market

 

Fama-French Modified Form Test

An applied study in the Iraqi stock market

Dr. Abdullah Kazem Hassan Al-Saidi 1

researcher. Nibras Majed Kazem 2

Al-Qadisiyah University – College of Administration and Economics – Department of Business Administration

 

Abstract:

The main purpose of this study is to test the Fama-French model by comparing the modified model, and in order to achieve the goal of the study, the Iraq Stock Exchange was chosen as an applied sample, as the study sample was reflected in the mixed industrial companies, which were represented by twelve companies (Al-Mansour Pharmaceutical Company, and Al-Sajjad Company). and furniture, the Baghdad Company for Packaging Materials, the Baghdad Company for Soft Drinks, the Iraqi Company for the Manufacturing of Dates, the Crescent Industrial Company, the Chemical Industries Company, the Al Kindi Company for Veterinary Vaccines, the Iraqi Company for Engineering Works, the Khazer Company for Construction Materials, the Ready-made Garment Production Company, and the Iraqi Company for the manufacture of carton As the period of study of companies was limited between (2011-2017), which indicates that the study period was seven years, and in order to extract the results in light of the data withdrawn from the Iraqi Stock Exchange, the study sample resorted to the use of a set of important indicators in financial analysis, which Represented in (beta coefficient per share, expected rate of return, market value of the company, factor of book value to market value, profitability coefficient, net income, promise D shares, and investment coefficient), and accordingly the study reached a set of results, perhaps the most prominent of which represented the chemical industries company characterized by its high risks through what was reflected by the beta coefficient of the stock, which appeared to be higher than the market risk, and this reflects the high sensitivity of the stock’s return towards the change in the returns of the market portfolio.

Keywords: (Fama and French model, Iraq stock exchange, modified model) .

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