The Relationship between Financial Indicators and Systematic Risk An Empirical study at Iraqi Stock Exchange

Ala'a A Al-Saedi, Ali M Hadi


The aim of this study is to identify the relationship between the financial indicators and systematic risk, to identify the extent that the investors and other relevant parties deal with Iraqi stock exchange used the financial information reflected by financial indicators and its relation to systemic risk.
The study used sample of 73 companies listed at Iraqi stock exchange for 2 years during period 2010 and 2011. The financial performance measured by using five financial indicators while the systematic risk measured by used the market model.
The study has concluded that there is negative relationship between return on equity and systematic risk for all companies listed at Iraqi stock exchange and there is a positive relationship between assets turnover and systematic risk. Besides that, there is negative relationship between debt ratio and systematic risk for the companies at insurance, investment, services, hotels and agriculture sectors.


Financial Indicators, Systematic risk, Iraq Stock Exchange.


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