The relationship between operational efficiency and return in terms of the impact on the market value of banks

The relationship between operational efficiency and return in terms of the impact on the market value of banks

 Ali Naim Jassim & Russell Sobhi Abdel Khader 

ABSTRACT

This research aims at presenting and analyzing the theoretical and intellectual aspects of the impact of the return on equity and its impact on the value of the banking institution. Risk management, liquidity and profitability are among the main factors that affect the banking business and thus affect the value of the bank. The problem of the study was to show the impact of the return on equity and its impact on the value of the banking institution. This study was applied to a sample of commercial banks listed in the Iraqi Stock Exchange, which were selected according to their application of international accounting standards among other banks that apply these standards, in addition to Its great activity in the banking arena, which is the Middle East Investment Bank, the Gulf Bank, the National Investment Bank, the Bank of Baghdad, for the period (2008 – 2020), and the descriptive analytical approach was used in describing all the variables, analyzing them and measuring them through the actual financial data available from the banks of the study sample, With the aim of evaluating and measuring the independent variables (operational efficiency, return on equity and banking value) and the dependent variable (the value of the bank), and analyzing and interpreting the correlation and impact between them. The study reached a number of conclusions within the framework of its main and subsidiary hypotheses, the most important of which was the existence of a relationship and impact of the model on the return on property rights and on the value of the banking institution.

Keywords: Operational Efficiency, Return on Equity, Bank Value.

Volume 13, Issue 1, Pages 81-98

DOI: 10.52113/6/2023-13-1/81-98

Categories: Uncategorized