Version 1
: Received: 30 August 2023 / Approved: 30 August 2023 / Online: 31 August 2023 (10:09:51 CEST)
How to cite:
Abdulhadi, K.H.; Dashtbayaz, M.L.; Salehi, M. The Impact of Intangible Assets and Macroeconomic Factors on Stock Prices in Developing Economies. Preprints2023, 2023082141. https://doi.org/10.20944/preprints202308.2141.v1
Abdulhadi, K.H.; Dashtbayaz, M.L.; Salehi, M. The Impact of Intangible Assets and Macroeconomic Factors on Stock Prices in Developing Economies. Preprints 2023, 2023082141. https://doi.org/10.20944/preprints202308.2141.v1
Abdulhadi, K.H.; Dashtbayaz, M.L.; Salehi, M. The Impact of Intangible Assets and Macroeconomic Factors on Stock Prices in Developing Economies. Preprints2023, 2023082141. https://doi.org/10.20944/preprints202308.2141.v1
APA Style
Abdulhadi, K.H., Dashtbayaz, M.L., & Salehi, M. (2023). The Impact of Intangible Assets and Macroeconomic Factors on Stock Prices in Developing Economies. Preprints. https://doi.org/10.20944/preprints202308.2141.v1
Chicago/Turabian Style
Abdulhadi, K.H., Mahmoud Lari Dashtbayaz and Mahdi Salehi. 2023 "The Impact of Intangible Assets and Macroeconomic Factors on Stock Prices in Developing Economies" Preprints. https://doi.org/10.20944/preprints202308.2141.v1
Abstract
This study examines the relationship between firm-level and macroeconomic variables and stock prices (SP) in Iran, Saudi Arabia (KSA), and Iraq, where economic conditions are uncertain. The sample consists of all firms listed on these countries' stock exchanges between 2015 and 2019, yielding a comprehensive dataset from 154 Iranian firms, 82 KSA firms, and 33 Iraqi firms. Using a fixed effect model, intriguing relationships are uncovered between firm-level and macroeconomic factors on SP. The findings indicate that, at a 1% significance level, there is a strong link between Iran and Iraq's GDP and their respective SP. In KSA, the association between GDP and SP is positive and significant at a 5% level. In addition, there is a positive and statistically significant correlation between the inflation rate and SP in all three countries. Moreover, the association between exchange rates and SP is significant and positive in KSA and Iraq but negative and significant at the 1% significance level in Iran. Furthermore, in KSA, the connection between oil prices and SP is positive and significant, whereas, in Iran, the relationship is negative at the 1% level. Surprisingly, there is no association between the price of oil and Iraqi SP. Regarding intangible assets, their impact on SP in Iran and KSA is negligible. In Iraq, however, there is a negative and significant relationship at the 5% level, indicating that intangible assets have a detrimental impact on SP. These findings highlight the complex link among macroeconomic factors, intangible assets, and SP in the examined countries. Policymakers and governments should prioritize implementing measures to foster sustainable economic growth, manage inflation, and stabilize exchange rates. These actions can boost investor confidence and contribute to the stock market's overall development.
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
