Analysis of the sectorial distribution of bank credit and its impact on the market value

An analytical study of a sample of the productive sectors listed in the Iraq Stock Exchange for the period (2010-2021)

To The Council of the College of Administration and

Economics, Karbala University, in Partial Fulfillment of the

Requirements for Master’s degree in Finance and Banking

By

Alaa Sabri Mahdi

Supervised by of

Prof. Dr. Kamal Kazem Jawad

Abstract

Most companies listed on the Iraq Stock Exchange suffer from declining share prices due to several factors and such as the political, economic and security conditions they are experiencing, Here emerges the main objective of the study, which revolves around the possibility of using the sectorial distribution of bank credit and directing it towards the economic sectors in order to encourage them to grow and invest and thus increase the value of their market shares on the one hand, On the other hand, knowing the reality of the response of economic sectors to bank credit. The researcher relied in her study on the applied side on a group of productive sectors listed in the Iraq Stock Exchange that were selected based on the availability of data for the duration of the study (2010-2021) and the study sample included (5) productive sectors (insurance, services, industry, hotels and tourism, agriculture). The researcher used statistical means to achieve her goals, which are (arithmetic mean, standard deviation, linear correlation coefficient and simple linear regression) and test the impact relationships between the study variables through the use of the statistical program SPSS. V.23.

The study reached a set of conclusions, including the existence of an inverse relationship of influence and correlation between the volume of credit granted and the market value of the sector (insurance, services, industry, hotels and tourism), The research also found that there is a direct relationship between the credit granted and the market value of the (agriculture) sector, meaning that increasing credit leads to an increase in investment opportunities for the sector and an increase in the value of shares. The study presented a set of recommendations, the most important of which was the need to follow up on bank credit granted to the productive sectors by the Iraqi Central Bank and to ensure that this credit is used this credit for economic productive fields, And educate investors and producers about the importance of using bank credit to finance new projects and expand existing projects in order to increase production and operation and increase the market value of shares.

Key words: Sectorial Distribution of bank Credit, Market Value.

Analysis of the sectorial distribution of bank credit and its impact on the market value

An analytical study of a sample of the productive sectors listed in the Iraq Stock Exchange for the period (2010-2021)

To The Council of the College of Administration and

Economics, Karbala University, in Partial Fulfillment of the

Requirements for Master’s degree in Finance and Banking

By

Alaa Sabri Mahdi

Supervised by of

Prof. Dr. Kamal Kazem Jawad

Abstract

Most companies listed on the Iraq Stock Exchange suffer from declining share prices due to several factors and such as the political, economic and security conditions they are experiencing, Here emerges the main objective of the study, which revolves around the possibility of using the sectorial distribution of bank credit and directing it towards the economic sectors in order to encourage them to grow and invest and thus increase the value of their market shares on the one hand, On the other hand, knowing the reality of the response of economic sectors to bank credit. The researcher relied in her study on the applied side on a group of productive sectors listed in the Iraq Stock Exchange that were selected based on the availability of data for the duration of the study (2010-2021) and the study sample included (5) productive sectors (insurance, services, industry, hotels and tourism, agriculture). The researcher used statistical means to achieve her goals, which are (arithmetic mean, standard deviation, linear correlation coefficient and simple linear regression) and test the impact relationships between the study variables through the use of the statistical program SPSS. V.23.

The study reached a set of conclusions, including the existence of an inverse relationship of influence and correlation between the volume of credit granted and the market value of the sector (insurance, services, industry, hotels and tourism), The research also found that there is a direct relationship between the credit granted and the market value of the (agriculture) sector, meaning that increasing credit leads to an increase in investment opportunities for the sector and an increase in the value of shares. The study presented a set of recommendations, the most important of which was the need to follow up on bank credit granted to the productive sectors by the Iraqi Central Bank and to ensure that this credit is used this credit for economic productive fields, And educate investors and producers about the importance of using bank credit to finance new projects and expand existing projects in order to increase production and operation and increase the market value of shares.

Key words: Sectorial Distribution of bank Credit, Market Value.