The effect of the relationship between certain accounting variables and trading volume in the market value of the Companies shares in Iraq stock exchange

Abstract

This study aimed to indicate the nature of the relationship between certain accounting variables (book value per share, return on share, share price to returning, share price annual rate, return on shareholders equities, return on assets, and the size of the company) and the desire to invest in the shares in the financial market (trading volume) and therefore what the impact of this relationship in the market value of the shares (closing prices) at the end of the year? A sample of (55) companies has been selected for this study from the seven sectors included in the Iraq stock exchange for the years 2004 and 2005. The data was collected from the published reports for these companies through the site of the Iraq stock exchange on the World Wide Web (www.isx.iq.net), and then the Minitab statistical program used to processing the data and examining the hypotheses of the study. By the T , F , D-W tests , the results of the study point out that there is a meaningful relationship between the selected accounting variables studied and the trading volumes in the shares , and this relationship has strong and significant influence on the market values of this shares in Iraq stock market . The study was presented some of the suggestions for the management of the Iraq stock exchange and others for the management of the companies listed and the investors in this market.