The effect of primary market indicators on the revenue power of commercial banks, a study in a sample of commercial banks listed in the market for the period (2005-2020)

Abstract

The stock market is an important tool for evaluating companies and projects. As it contributes to increasing the awareness of investors and their insight into the reality of companies and projects, and they are judged to succeed or fail. The drop in stock prices for a company is conclusive evidence of its lack of success or the weakness of its financial position, which may lead to making some adjustments in its leadership or in its policy, in the hope of improve its profitability.

Research design: The descriptive analysis approach was adopted through financial analysis in the cognitive and empirical field of the model and hypotheses of the study, and commercial banks listed in the stock market were adopted for a community for the study, and a deliberate sample was adopted from eight banks, including being the most traded and active in the market, the study data were collected for the period (2005 -2020) and according to the annual financial reports issued by the Securities and Exchange Commission.

Results: The results of the statistical analysis of the research community showed that the primary market and the secondary market have a good relationship in the revenue power, as the financial markets operate within an environment characterized by continuous and complex dynamics accompanied by risks and threats that the managements of these banks must avoid or confront.           

Originality/Value: This research came in an attempt to contribute to the detection of measuring strengths and weaknesses and how the primary market contribute to exploiting strengths and overcoming weaknesses in light of revenue strength.