The Effect of Diversifying the Investment Portfolio in Reducing Financial Risks, an Analytical Study in a Sample of Iraqi Industrial Companies.

• Post by: Muthanna mjdes
• October 16, 2022
• Comments off

Saad Majeed Al-Janabi

Al-Muthanna University / College of Administration and Economics

Abstract

The research aims to identifying the impact of diversification of the investment portfolio in reducing the financial risks in the Iraqi industrial companies by knowing the impact of the returns of a certain type of investments in covering the losses that are likely to occur to another type of investments in the same portfolio,To achieve this objective, the sample of the research was selected from the Iraqi industrial companies that display their financial lists in the Iraq Stock Exchange through relying on financial investment reports for the financial years 2011-2015. The hypothesis of the research was tested and its objectives achieved. The main findings of the research are that Iraqi industrial companies that diversify their investment portfolios are less likely to face the financial risks they face, because diversification of the investment portfolio leads to a diversification of financial returns that cover the losses incurred. The most important recommended is the need for Iraqi industrial companies to increase financial investments in investment portfolios of more than one kind in order to achieve returns and growth and reduce financial risks.

DOI:10.52113/6/2019-9-1/26-42