The Effect of Accounting Profits on Stock Exchange Shares Returns: A Field Study on Iraqi Companies

Abstract

This Study examines the relationship between the stock returns and the accounting profits. The purpose is the find out: 1- The ability of accounting profits to account for the stock returns of the shares of the participant companies registered in Baghdad stock exchange. 2- Whether the ability of the accounting profits explain of the stock exchange dues in affected by the variable representative it. 3- How far the effect of each of the two variables, namely variable change in the share profit and the variable level of the share profit is when considered together in that relation. 4- How far the effect of the size of the company is on every one of those two variables of profits when considered together in that relation. The main conclusions of the study are:- 1- The ability of every one of the two variable representatives the profit cannot account for more than 10% of the stock returns. 2- The profit variable which can best account for the stock exchange profit cannot be specified.