Banking Financial Balance Indicators and Their Impact on Earnings per Share and Market Value: An Analytical Study of a Sample of Banks Listed on the Iraq Stock Exchange”

The study aimed to identify the direct effects of banking financial balance indicators on earnings per share and the market value of banks. The banking financial balance indicators were represented by liquidity, capital adequacy, profitability, and financial leverage, with bank size included as a control variable. The study sample comprised 6 banks listed on the Iraq Stock Exchange for the period (2014–2024). The study relied on Panel Data and employed a set of econometric tests to determine the appropriate model for the data, including the Levin, Lin & Chu (LLC) unit root test to verify the stationarity of the variables, model selection tests among panel data models, in addition to diagnostic tests, using the statistical programs (EViews 13 and SPSS 26). The study concluded that there was a statistically significant effect of financial balance indicators on earnings per share and market value, with the effect concentrated in the profitability and financial leverage indicators. Bank size showed a positive and significant effect on earnings per share, whereas it did not show a statistically significant effect on market value. The study recommended the need to enhance profitability by improving the efficiency of financial resource utilization and the optimal investment of funds, thereby contributing to increasing earnings per share and market value and enhancing investors’ confidence.