The Effect Of Foreign Investors' Trading In The Stock Price Decline A Study Of Some Banks Listed On The Iraqi Stock Exchange

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Authors: Mohammed H. Adnan, Manaf .A. Ahmed, Ihsan salim Mesri
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Abstract

The aim of research is to study the impact of foreign investor trading on the decline in stock prices of a group of private Iraqi banks. The research used regression analysis on data from four Iraqi joint-stock banks (Bank of Baghdad, Middle East Bank, Gulf Commercial Bank, and Mansour Bank) to examine how foreign investors affect stock prices in Iraqi private banks. The research used E-Views 10 software to test the research hypotheses and achieve its objectives. The time series extended 84 times for each bank over seven years on a monthly basis, with a total of 1,344 views of the combined cross-sectional data. Data were based on the number of trading transactions, number of traded shares, and trading volume (value), in addition to stock price data for the same banks. The research results concluded that the number of trading transactions and trading volume (value) had a significant positive impact. These results are inconsistent with the research hypotheses, which indicate a negative regression trend. Conversely, an increase in the traded shares leads to a decrease in stock prices, which is consistent with the second hypothesis of the study.

Fields of Study & Subjects

Financial Markets and Investment Strategies Financial Analysis and Corporate Governance Corporate Finance and Governance

Publication details

Journal / source
مجلة اقتصاديات الاعمال للبحوث التطبيقية
Volume
7
Issue
2
Pages
225–241
Publication date
8 January 2026