The Impact of Inflation and Exchange Rate Fluctuations on the Market Value of Stocks
DOI:
https://doi.org/10.31150/ajebm.v7i6.2814Keywords:
inflation rate, exchange rate fluctuations, market valueAbstract
The research aims to know the impact of the inflation rate and exchange rate fluctuations on the market value of the shares of the companies in the research sample, listed on the Iraq Stock Exchange, and to clarify the type of relationship between fluctuations and market value. Eight companies were selected from the industrial sector in the Iraq Stock Exchange to test the relationship between the inflation rate, the exchange rate, and the market value of stocks over three years and on a monthly level, up to (36) observations. The analysis results revealed a correlation and influence between the variable (inflation rate and exchange rate fluctuations) as an independent variable on the one hand and the variable (market value) as a variable. It is affiliated with some companies in the research sample, using the statistical program (Spss, ver.26). The research included five paragraphs. The first was the research methodology, and the second dealt with the theoretical aspect. The third paragraph referred to data analysis for the two variables. In contrast, the fourth paragraph includes the statistical analysis results, and finally, The fifth paragraph presents the most important conclusions and recommendations.
Downloads
References
Annual reports: Central Bank, 2021-2023.
Annual reports: Iraqi Stock Exchange, 2021-2023.
C. Shapiro and A. Multinational, Financial Management, 10th ed., Willy, 2014.
E. F. Brigham and M. C. Ehrhard, Financial Management: Theory & Practice, 14th ed., US, 2014.
L. Davidson, H. Hauskrecht, and J. Vonhagen, Macroeconomics for Business, Singapore, 2020.
E. Efry and A. Djazuli, "The Effect of Inflation, Interest Rates and Exchange Rates on Stock Prices of Manufacturing Companies in Basic and Chemical Industrial Sectors on the Indonesia Stock Exchange (IDX)," International Journal of Business, Management & Economics Research, vol. 1, no. 1, August 2020.
M. A. F. Nunn and M. A. F. Shehata, United Kingdom, translated Milton, Capitalism and Freedom, 2017.
J. Madura, International Financing Management, 12th ed., Florida, 2015.
J. A. Keown, D. J. Martin, and W. Petty, Foundations of Finance, 8th ed., Boston, 2014.
The Logic and Practice of Financial Management, Boston, 2014.
C. Wan, "An advanced fuzzy Bayesian-based FMEA approach for assessing maritime supply chain risks," Transportation Research Part E: Logistics and Transportation Review, vol. 125, pp. 222--240, 2019. doi: 10.1016/j.tre.2019.03.011. Available: https://api.elsevier.com/content/article/eid/1-s2.0-S1366554518302655.
Q. Kong, "Trade openness and economic growth quality of China: Empirical analysis using ARDL model," Finance Research Letters, vol. 38, 2021. doi: 10.1016/j.frl.2020.101488. Available: https://api.elsevier.com/content/article/eid/1-s2.0-S1544612319312565.
Y. Wei, "Oil price fluctuation, stock market and macroeconomic fundamentals: Evidence from China before and after the financial crisis," Finance Research Letters, vol. 30, pp. 23--29, 2019. doi: 10.1016/j.frl.2019.03.028. Available: https://api.elsevier.com/content/article/eid/1-s2.0-S1544612319300224.
F. Aslam, "On the efficiency of foreign exchange markets in times of the COVID-19 pandemic," Technological Forecasting and Social Change, vol. 161, 2020. doi: 10.1016/j.techfore.2020.120261. Available: https://api.elsevier.com/content/article/eid/1-s2.0-S0040162520310878.
X.T. Fang, "Implementation of quantum key distribution surpassing the linear rate-transmittance bound," Nature Photonics, vol. 14, no. 7, pp. 422--425, 2020. doi: 10.1038/s41566-020-0599-8.
M. Wątorek, "Multiscale characteristics of the emerging global cryptocurrency market," Physics Reports, vol. 901, pp. 1--82, 2021. doi: 10.1016/j.physrep.2020.10.005. Available: https://api.elsevier.com/content/article/eid/1-s2.0-S0370157320304166.
M. Yu, "Exploring the nexus between monetary uncertainty and volatility in global crude oil: A contemporary approach of regime-switching," Resources Policy, vol. 85, 2023. doi: 10.1016/j.resourpol.2023.103886. Available: https://api.elsevier.com/content/article/eid/1-s2.0-S0301420723005974.
M. Vochozka, "The influence of the international price of oil on the value of the EUR/USD exchange rate," Journal of Competitiveness, vol. 12, no. 2, pp. 167--190, 2020. doi: 10.7441/joc.2020.02.10.
X. Li, "Exploring the asymmetric impact of economic policy uncertainty on China's carbon emissions trading market price: Do different types of uncertainty matter?," Technological Forecasting and Social Change, vol. 178, 2022. doi: 10.1016/j.techfore.2022.121601. Available: https://api.elsevier.com/content/article/eid/1-s2.0-S0040162522001330.
D. Kumar, "A hybrid analytical algorithm for nonlinear fractional wave-like equations," Mathematical Modelling of Natural Phenomena, vol. 14, no. 3, 2019. doi: 10.1051/mmnp/2018063. Available: https://api.elsevier.com/content/article/eid/1-s2.0-S0013468620318259.
D. Chunn, "Application of an integrated SWAT-MODFLOW model to evaluate potential impacts of climate change and water withdrawals on groundwater-surface water interactions in west-central Alberta," Water (Switzerland), vol. 11, no. 1, 2019. doi: 10.3390/w11010110. Available: https://api.elsevier.com/content/article/eid/1-s2.0-S0013468620318259.
S.B. Nicholson, "Time–information uncertainty relations in thermodynamics," Nature Physics, vol. 16, no. 12, pp. 1211--1215, 2020. doi: 10.1038/s41567-020-0981-y.
W. Yang, "Experimental and numerical investigations on the thermal performance of a borehole ground heat exchanger with PCM backfill," Energy, vol. 174, pp. 216--235, 2019. doi: 10.1016/j.energy.2019.02.172. Available: https://api.elsevier.com/content/article/eid/1-s2.0-S0360544219303780.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Bushra Mohamed Sami Alasadi

This work is licensed under a Creative Commons Attribution 4.0 International License.