Measuring banking awareness and its impact on bank stock returns

(Applied study on a sample of Iraqi banks for the period from (2005-2020

Search submitted to

Board of the College of Administration and Economics at the University of Karbala

It is part of the requirements for obtaining a higher diploma in banking management

written by

Ahmed Jwad Mohameed Ali

Supervised by

Prof.asst. Dr. Zainb Makki ALban

The banking sector is an essential pillar of the economy. For his great role in the economic development of the country. This requires the 

advancement of this vital sector and attention to all the accompanying changes in order to continue and grow. The study sought to achieve a set of cognitive and practical objectives by selecting (5) private Iraqi banks from among the banks operating in the Iraqi banking sector, using their financial data and the data of the Iraq Stock Exchange for the period

 (2005-2020) The problem of the study was embodied in the dialectical relationship between banking awareness and its impact on bank stock returns. Through a number of questions to analyze the relationship between the independent variable (banking awareness) and the dependent variable (bank stock returns).And hypotheses were formulated that reflect the correlation and influence relationships between the variables. To achieve the objectives of the study and analyze the interrelationship between the study variables, the researcher used three indicators to measure the level of banking awareness, which are (the equilibrium ratio in the use of available resources, the ratio of investments to total deposits, the ratio of liabilities to property rights). To measure the returns on banking shares, the natural logarithm of the current share price minus the natural logarithm of the previous share price was used.

To test the impact hypotheses, simple regression was used for the purpose of testing the direct effect relationships between the independent variable (banking awareness) and the dependent variable (bank stock returns). As well as using the coefficient of determination (R2) to explain the effect of the independent variable on changes that occur on the dependent variable, as well as the standard coefficient of regression Beta, which measures the response of the dependent variable when the independent variable changes by one standard degree. and the linear equation for simple linear regression (Y = a + bX) which was calculated by SPSS V.21). After testing the hypotheses, the researcher reached a set of conclusions, the most important of which were: There is a close relationship between banking awareness and bank stock returns, as it is not possible to achieve a rise in bank stock returns without banking awareness.The researcher recommended a number of recommendations, the most important of which were: The need to develop banking capabilities related to paying attention to indicators that reflect banking awareness and to continue analyzing these indicators regularly because weakness and shortcomings in analyzing these indicators lead to the bank’s inability to know its competitive position and wasting a lot of success opportunities available to the bank in increasing returns stock.

Measuring banking awareness and its impact on bank stock returns

(Applied study on a sample of Iraqi banks for the period from (2005-2020

Search submitted to

Board of the College of Administration and Economics at the University of Karbala

It is part of the requirements for obtaining a higher diploma in banking management

written by

Ahmed Jwad Mohameed Ali

Supervised by

Prof.asst. Dr. Zainb Makki ALban

The banking sector is an essential pillar of the economy. For his great role in the economic development of the country. This requires the 

advancement of this vital sector and attention to all the accompanying changes in order to continue and grow. The study sought to achieve a set of cognitive and practical objectives by selecting (5) private Iraqi banks from among the banks operating in the Iraqi banking sector, using their financial data and the data of the Iraq Stock Exchange for the period

 (2005-2020) The problem of the study was embodied in the dialectical relationship between banking awareness and its impact on bank stock returns. Through a number of questions to analyze the relationship between the independent variable (banking awareness) and the dependent variable (bank stock returns).And hypotheses were formulated that reflect the correlation and influence relationships between the variables. To achieve the objectives of the study and analyze the interrelationship between the study variables, the researcher used three indicators to measure the level of banking awareness, which are (the equilibrium ratio in the use of available resources, the ratio of investments to total deposits, the ratio of liabilities to property rights). To measure the returns on banking shares, the natural logarithm of the current share price minus the natural logarithm of the previous share price was used.

To test the impact hypotheses, simple regression was used for the purpose of testing the direct effect relationships between the independent variable (banking awareness) and the dependent variable (bank stock returns). As well as using the coefficient of determination (R2) to explain the effect of the independent variable on changes that occur on the dependent variable, as well as the standard coefficient of regression Beta, which measures the response of the dependent variable when the independent variable changes by one standard degree. and the linear equation for simple linear regression (Y = a + bX) which was calculated by SPSS V.21). After testing the hypotheses, the researcher reached a set of conclusions, the most important of which were: There is a close relationship between banking awareness and bank stock returns, as it is not possible to achieve a rise in bank stock returns without banking awareness.The researcher recommended a number of recommendations, the most important of which were: The need to develop banking capabilities related to paying attention to indicators that reflect banking awareness and to continue analyzing these indicators regularly because weakness and shortcomings in analyzing these indicators lead to the bank’s inability to know its competitive position and wasting a lot of success opportunities available to the bank in increasing returns stock.