Abstract:
This paper investigates the relationship between the financial indicators derivecl from the Firms annual reports and stock abnormal market returns, and the influense of size variable this relation. However, we achieved the test by using two hypotheses. 1. There is significant relation between the financial indicators devired from the firms annual reports, on the date of its publication on the local bourse, and the stocks abnormal market return. 2. The relationship between financial indicators devired from the firms annual reports, at the date of its publication on the local bourse, and stocks abnormal market returns differ according to the firms size. The Lesting of these two hypothesis achieved by using a sample covered about (85) firms distributed on the bourses of Amman and Baghdad with proportion of 50:35 respectively. Ultimately, the results Show empirical evidence, on the whole, tend to Support the two hypotheses.
