No * The effect of the government budget deficit on trading indicators in the stock market (applied study in the Iraqi stock market for the period from 2005 – 2016)
Dr. Haidar Younis Al-Musawi, Dr.Ahmed Kazem, م.م. حيدر عباس الجنابي
THE IRAQI MAGAZINJE FOR MANAGERIAL SCIENCES
2018, Volume 14, Issue 57, Pages 96-121
Abstract
This study examines the role of the government budget deficit in the fluctuations in the indicators of the financial performance of the Iraqi market for securities for the period (2005 – 2016). The study aimed to focus on financial planning based on logical scientific principles that do not cross the financial concepts adopted globally. The study aimed at explaining the role of the financial markets at the level of the economy and any damage or impact that affects the financial markets. As a result, the damage will extend to the remainder of the budget. As the financial markets are considered the pillars of economic movement and the main engine for the rotation of the wheel of development in the global economies.The methodology of the study in analyzing the data is based on the use of descriptive analysis. The researcher compared the hypotheses of the study that were identified with the actual results of the correlation coefficients that show the real relationship between the independent variable and the dependent variables.The study concluded with a number of results:1. The conditions of the stock market are a mirror of the overall economic situation, and the stability of these markets is a measure of the success of the general economic policy in the country. Therefore, the attempt to understand the government budget deficit and its impact on indicators of financial performance of the Iraqi market for securities contributes to the achievement of economic and financial stability in the Iraqi economy.2. Market efficiency plays a key role in the process of responding to fluctuations and changes in the government budget deficit, because whenever the stock market has a certain level of efficiency whenever there is a response to these changes are faster and more efficient markets.3. The deficit of the government budget remains one of the topics that occupy the thinking of the planners of the economic policy of the country, because whatever solutions are put in place to alleviate the deficit of the budget, but the effects of the deficit remain large on the level of the economy, except the benefits paid by borrowing to fill the deficit, A new cash release to cover the deficit, the low level of government ownership due to the sale of its financial assets to meet the deficit.The researcher recommended a set of recommendations, the most important of which:1. Establish active and active centers within the Iraqi stock market that will allow investors to access information on actions taken by the government and the central bank on their economic policy, so that they can reverse them in making decisions to buy and sell securities.2. The financial and monetary authorities must balance the benefits and possible negative effects of fiscal and monetary policy decisions on the Iraqi Stock Exchange.3 – The need to use teams of professional financial analysts for the purpose of training and development of the Iraqi market for securities to take advantage of their experience in how to address the problems that may affect the activity of the market, and how to alleviate the severity of these problems if they are inevitable can not be overcome.
