Non-performing loans and their impact on the added market value “An analytical study of a sample of commercial banks for the period 2005-2019”

Abstract

The research aims to determine the correlation and impact between non-performing loans and the added market value. The importance of the research lies in the importance of the banking sector and its increasing role in stimulating the economic sectors by financing them to cover their activities and exposing them to difficulties as a result that make them lose a significant part of their financial resources due to Non-payment of loans granted by their beneficiaries, as a sample of six private commercial banks listed in the Iraqi Stock Exchange whose data are available for the period (2005-2019) was tested, the statistical program spss v.25 was used to analyze and test the variables and find the relationships between them, The correlation and impact relationships between the independent variable (bad loans) and the dependent variable (market value added) were analyzed after testing its normal distribution and the lack of dispersion of its data. The research also recommended the need to pay attention to non-performing loans and try to collect them from their beneficiaries, especially in the private sector.