Analysis of the Impact of Liquidity Ratio, Profitability Ratio, and Market Ratio on Shareholders’ Equity: An Applied Study in the Iraqi Stock Exchange for the Period (2018-2022)

This study aims to analyze the impact of liquidity ratio, earnings ratio, and market-to-book ratio on shareholders’ equity-producing companies for the period (2018-2022) listed on the Iraqi Stock Exchange. The financial ratios analyzed in this study include the current ratio, quick ratio, net profit margin, book-to-market ratio, and shareholders’ equity. Reliance was placed on the audited financial statements of 11 companies that were properly listed on the stock exchange for five years, using a targeted sampling technique to obtain the data. Quantitative and descriptive research methods were used in this study, which includes the description of current ratio (CR), quick ratio (QR), net profit margin (NPM), and market-to-book ratio (MBR) as independent variables. Shareholders' equity (SE) is treated as the dependent variable. In this study, financial lists, such as data collection techniques, panel data regression, and statistical methods were used to evaluate and test hypotheses with the help of EViews 12 software. The results indicate that the current ratio (CR) and market-to-book ratio (MBR) have a significant negative effect on shareholders’ equity (SE). This is where the quick ratio (QR) has an important, significant positive effect on shareholders’ equity (SE). However, net profit margin (NPM) has no significant effect on shareholders’ equity (SE) in manufacturing firms in Iraq.