Market Timing Theory Effect on the Company's Value (An Analytical Study on Some of the Industrial Companies in Iraq Listed on The Iraq Stock Exchange Between 2012 and 2022)

ABSTRACT

The current piece try to test market timing theory effect of on the company's value for a sample of industrial companies listed on the Iraq Stock Exchange (ISE). The research problem is choosing the best way to formulate the capital structure by comparing internal and external financing to develop it to maximize the value of Iraqi industrial companies. The research was conducted in the Iraq Stock Exchange, specifically in the industrial sector. The number of Iraqi industrial companies listed in the Iraq Stock Exchange (21) companies, which represent the research community. At the same time, the research sample was (4) companies with complete data for the period (2010-2022). The market timing theory measure (company size - liquidity - tangible assets - the percentage of market to book value - the weighted rate of external financing for the percentage of market to book value ) was used. This represents the regressors variable in the research, while the regressand variable was the company's value, which was measured by (number of shares issued * closing price). The researcher relied on the simple linear regression method to test the regressor variable's effect on the regressand variable. The statistical results showed a significant impact of the market timing theory on the company's value. The most important recommendation of the research is the need to legislate a law that allows Iraqi companies to buy back their shares at a specific rate in the event of a decrease in their market value below the book value to preserve the value of their market shares.