The Effect Of Prevention Costs on The Market Prices Of Common Stocks an Empirical Study on Some Industrial Companies Listed In The Iraq Stock Exchange

Abstract

The investment in common stocks is considered as one of the important fields which is important to investors. Companies try to raise funds by encouraging others to possess its stocks that lead to maximize their market values. In order to realize factors that affect market values of stocks, this research studies the protection costs as an independent variable in order to study its effect on that values.

    The study aims to achieve some objectives and the most important of them is to achieve intellectual contribution and theory in the protection cost and market value, then to determine which element of protection cost such as effect on the market value which could be relayed on in the future.

            The study started with three main hypotheses including that there is a significant relationship between the prevention cost and market value, and there is a contradictory between the companies used as samples in the study in the range of prevention cost effect on the market value.

         The study covered the period (2009-2015) and selected a sample of three industrial companies listed in Iraqi stock exchange according to the availability of data of their activities. The study reached some conclusions and recommendations.