Analysis of working capital and its impact in the market value of the enterprise
analytical study of a sample of the industrial sector companies listed in the Iraqi Stock Exchange for the period from 2011 to 2019
the Board of the Faculty of Administration and Economics/ University of Karbala which is part of the requirements for obtaining a master’s degree in Business Administration Sciences
Submitted by the student Firas Qassem Sobeeh Shuaib Al-Kinani
Under the supervision of the teacher, Dr Amir Ghanem Wadi
The main objective of this study is to shed light on the cognitive aspects related to working capital and market value on some industrial companies listed in the Iraqi Stock Exchange and to show the extent of the impact of working capital indicators on the market value of the facility, and in order to test the hypotheses of the study, the study was applied to a sample Of the industrial companies listed in the Iraq Stock Exchange, which are six companies, the necessary information was obtained through the financial reports of the Iraq Stock Exchange for the study sample companies for the period 2011-2019, and on a quarterly basis for each year four chapters.
The study relied on a number of statistical tools and methods: correlation, simple linear regression analysis, multiple regression, arithmetic mean, and (T) and (F) tests, as well as a set of related financial indicators (the ratio of current assets to total assets). , trading ratio, net working capital, closing price). In light of the results, which were reached, a set of conclusions was drawn, the most important of which were: There is a multiple impact of the working capital indicators on the market value of the company (Baghdad Soft Drinks, the National Company for Chemical and Plastic Industries, Modern Sewing, Al-Mansour Pharmaceutical Industries, Al-Iraqiya for Carpets and Furniture) That is, the changes taking place in the three indicators lead to an increase in the market value and the achievement of profits. As for the (bikes) company, there is no multi-effect.
Keywords: working capital, market value, net working capital, trading ratio
