journal of sustainable studies joss
The Impact of Credit Risk on the Market value for Common Shares – an analytical Study of a Sample of Iraqi Private commercial Banks for the Period from (2014 – 2019)
Adel Hamid Abd Saadoun Dr. Abdel Reda Farag Badrawi
Administration & Economics College / Albas rah university
Abstract:
The main idea of this study is to shed light on credit risk and its impact on the market value of ordinary shares and the amount of potential losses that can be directed by private Iraqi commercial banks, which are adopted as a tool for measuring and controlling risks, and as is known, the ultimate goal of banks is to increase profits and reduce losses, And on the bank’s departments lies the full responsibility for controlling risks ,in order to achieve the objectives of the study, and identifies weaknesses and strengths in aspects of the influence and extent of their reflection on the market value, the researcher adopted in studying the analytical aspect of a group of annual financial reports for a group of Iraqi private commercial banks, which were selected depending on the availability of data for the study period (2014- 2019), The study included a sample (10) banks, and a set of financial and statistical methods and indicators were used to achieve the objectives of the study, such as using the simple linear regression model and the coefficient of determination (R2) and my tests (T) and (F) using the (Eviews) and (Microsoft) programs. Excel), and The study reached a set of conclusions, the most important of which are: the existence of a relationship and a statistically significant effect between credit risk and the market value of common stocks, and one of the most important recommendations of the study is that bank departments work according to a moderate lending policy.
Keywords: (impact, risk, credit, value, market).