THE ROLE OF VALUE-BASED MANAGEMENT IN EARNINGS PER SHARE: AN ANALYTICAL STUDY IN A SAMPLE OF COMPANIES LISTED ON THE IRAQI STOCK EXCHANGE (2010 – 2019)

Abstract

The current study aims to show the impact of value-based management on the return of the share and compare insurance companies listed on the Iraqi Stock Exchange and insurance companies listed on the ASE. The economic profit has been relied upon as an indicator to measure value-based management, as the problem of the study focused on the decline in the returns of shares in Iraqi and Jordanian insurance companies. Therefore, the issue of the study was the central question of whether value-based management contributes to increasing the returns of shares? To reach solutions to the research problem and its central question was imposed three main assumptions were the relationships of association, influence, and differences between the two markets of the study. The study time series was conducted from 2010 to 2019, and the statistical analysis was carried out using EVIEWS and SPSS. The study relied on the analytical, quantitative approach in collecting, analyzing, and interpreting data based on financial statements (financial position list, income list) in obtaining data and monthly and annual bulletins and stock trades for the companies sampled study. The most important conclusion is that value-based management includes a social dimension that shares responsibilities between shareholders and stakeholders, ensuring success and continuous and accelerated development. The results indicate a need to increase coordination between the management based on value and all company sections. It contributes to the achievement of profits for companies (maximizing profitability). This is positively due to the realization of the return of the share and increases the possibility of the company material and significance.