International Business Management

Year: 2017
Volume: 11
Issue: 6
Page No. 1379 - 1385

Risk of Irregularity Reflection on the Profitability of Equity Investment: An Empirical Study in the Iraqi Stock Exchange

Authors : Mokhalad Hamzah Jaddoa, Manal Hameed Majeed and Hakeem Hammood Flayyih

Abstract: The idea of centred research on finding the causes of irregular risk with its consequence bounces back to the profitability of investment shares. This depends on the nature of the circumstances surrounding the company as well as the data of the internal environment and what is going on around them. In addition, it also depends on the fact that risks of irregularity are non-market and result of risks within the company which can be from the administration or the investor. It is the overall risk of the company that affects its efficiency and effectiveness as the profitability of objectives is based on industrial and service business organizations. A goal sought by investors and security speculator as the funding equity figure of the president and the most common forms of financing the property has been chosen. The study devises an uncertainty that prevails in the financial market and accompanying the vulnerability of investor shares to a lot of risk and proceeds to the failure to take appropriate measures. Therefore, there has been research on companies listed for trading on the Iraq Stock Exchange as a society with 84 companies. A sample of 30 companies from various sectors (services sector, the banking sector, insurance companies, investment companies, industrial companies and agriculture) were selected from the 84 companies. From the research, conclusions and recommendations were made such as: the high coefficient of variation as a measure of the risk of irregularity in corporate research sample indicates the largest volatility in revenues compared to corporate research sample in which the risk levels of irregularity declined as a result of limited investment returns. While the later fluctuates, it is among the most prominent recommendations from the research to an investor in order to maximize investment benefits that are not taken into account of earnings per share. This is a basis for measuring the risk of irregularity by taking in to account other factors related to risk of irregularity in companies.

How to cite this article:

Mokhalad Hamzah Jaddoa, Manal Hameed Majeed and Hakeem Hammood Flayyih, 2017. Risk of Irregularity Reflection on the Profitability of Equity Investment: An Empirical Study in the Iraqi Stock Exchange. International Business Management, 11: 1379-1385.

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