The Impact of Working Capital Indicators on Stock Market Value: An Analytical Study of a Sample of Industrial Companies Listed on the Iraq Stock Exchange for the Period 2015-2023

Abstract

This study aims to analyze the impact of working capital indicators on the market value of stocks, using a sample of seven industrial companies listed on the Iraq Stock Exchange, These companies comprise 60% of the research sample for the period (2015-2023), The study relied on annual data, To test the study hypothesis, Panel Data technology and the outputs of the statistical program 12.Eviews-V were used, Multiple regression analysis was used to identify the relationship between the independent variable (working capital), the control variables (total assets and financial leverage), and the dependent variable (market value), The study results revealed a statistically significant positive and direct relationship between working capital indicators and the market value of stocks, confirming the importance of effective working capital management in enhancing the value of industrial companies on the Iraq Stock Exchange, Current assets and total assets have a significant impact at the 0.01 level, indicating that asset size and operating liquidity play a crucial role in determining the market value of industrial companies, and that the earnings per share ratio A positive correlation with working capital indicators indicates that effective management of liquidity and operational resources contributes to enhancing company profits and improving shareholder returns. Accordingly, approximately 69% of the change in a company's market value can be explained by the variables in the current study. Therefore, companies should improve working capital management by enhancing the current ratio and net working capital to ensure sufficient liquidity to cover short-term liabilities and support operational activity. This enhances investor confidence and increases the market value of shares.