The interactive role of operational efficiency in the relationship between diversification dynamics and market value
An analytical study of a sample of companies listed on the Iraqi Stock Exchange for the period (2004 – 2022)
Submitted thesis
To the Council of the College of Administration
and Economics at the University of Karbala
It is part of the requirements for obtaining a doctoral degree in financial and banking sciences
Presented by
Muhannad Farooq Hameed Al-Janabi
Under the supervision of Assistant Professor
Dr. Mahdi Attia Al-Jubouri
Dr. Zainab Makee Mahmood Albanaa
Abstract
The study aimed to present and measure the interactive role of operational efficiency in the relationship between diversification dynamics and market value and to benefit from the results of this relationship for the purpose of drawing practical conclusions and providing the necessary recommendations to improve the performance of companies and enhance their market value through analyzing the financial indicators used to measure diversification, as well as analyzing efficiency indicators. The operational and market value of the companies in the study sample, as the sample included ten companies: (Baghdad Soft Drinks Company, Modern Sewing Company, Baghdad Packaging Materials Manufacturing Company, Al-Amin Insurance Company, Dar Al-Salam Insurance Company, Al-Nokhba Contracting Company, Al-Amin Real Estate Investments Company, Al-Mamoura Real Estate Company Al-Karkh Tourist Games City, Al-Amin Financial Investment Company). Based on the availability of data for a time series extending from the year 2004 until the year 2022, the study used a set of financial means and statistical methods to achieve its objectives, which consisted of analyzing the correlations, impact, and interaction of the variables of the study and testing hypotheses, through the use of a set of statistical methods. In order to achieve the objectives of the study, hypotheses were formulated. Main and tested using the statistical program (SPSS). The study reached a set of results, the most important of which is the absence of a statistically significant and morally significant correlation and influence of diversification dynamics in the market value of most of the companies in the study sample. The results also showed that there is no interactive effect of operational efficiency in the relationship. Between the dynamics of diversification and the market value of most companies in the study sample. The study concluded with a number of recommendations, the most prominent of which is the need to take into account the factors affecting the market value in an attempt to control it, or at least the factors that are under the company’s control, in order to increase the level of the market value of the companies studied.
Keywords: operational efficiency, diversification, market value.
