Analysis of return indicators and their impact on choosing the components of the bank’s investment portfolio - an applied study in the Iraqi stock market for the period from 2004-2016
Keywords:
Return indicators, components of the bank’s investment portfolioAbstract
This research sought to determine the effect of return indicators as an independent variable in choosing the components of the bank’s investment portfolio as a dependent variable. The study was conducted in the banking sector of the Iraq Stock Exchange and the study sample included (12) banks for the period from 2004-2016. The study variables were measured using financial indicators appropriate for this purpose. The study started from an intellectual problem represented by the existence of intellectual frameworks and multiple paths to study the extent of the impact of return indicators on choosing the components of the investment portfolio, which is still the subject of controversy and study in terms of its different impact, in addition to it being one of the vital topics that need to be studied continuously because of its significant impact on the work of the bank. Hence, the research sought to achieve a set of goals, the most prominent of which were:
- Knowing the extent to which the researched banks adopt return indicators and employ them in selecting the components of the investment portfolio.
To achieve the objectives of the study, the main hypotheses were formulated and tested using advanced statistical methods and applying the statistical program (SPSS). The research reached a set of conclusions, perhaps the most important of which is that return indicators clearly impact choosing the components of the investment portfolio in the banks sampled in the research.
Then the research concluded with a set of recommendations, the most important of which is activating reliance on granting loans to increase bank revenues, especially with the availability of high liquidity in the majority of the banks studied, to invest in the opportunities available due to changing interest rates. Benefit from economic changes by studying the opportunities and the threats facing banks to avoid them as much as possible.
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