The role of the stock market's effectiveness in profitability A study in a sample of commercial banks listed in the market
DOI:
https://doi.org/10.36322/jksc.176(B).19571Keywords:
stock market , primary market effectiveness , secondary market effectiveness , banking profitabilityAbstract
Purpose: The stock market is an important tool for evaluating companies and projects. As it contributes to increasing investors’ awareness and 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 policy in the hope of improve its profitability.
Study deSign: The descriptive analysis approach was adopted through financial analysis in the cognitive and empirical field for the model and hypotheses of the study. The commercial banks listed in the stock market for a community were adopted 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), according to the annual financial reports issued by the Securities and Exchange Commission. In the statistical analysis, the researcher relied on solid standards. The hypotheses were tested through the use of simple regression to prove sub-hypotheses and the use of multiple regression to prove the main hypotheses. The data was processed through the use of advanced statistical software (EViews10), and the study came out with several conclusions, the most important of which is (the need for the bank to increase work On attracting bank deposits of all kinds by enhancing the confidence of depositors and shareholders in the importance of keeping their money with banks and obtaining rewarding returns as a result of keeping them without withdrawals before the maturity date. Companies should raise the efficiency and effectiveness of their activities, to maximize their profitability and improve their financial performance in order to increase investor appetite for their securities.
Authenticity/Value: This study came in an attempt to contribute to the detection of measuring the effectiveness of the stock market and how it contributes to the profitability of commercial banks.
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أولا: المصادر العربية
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