Discovering the maximum values of market values using the maximum value theory - an analytical study of three selected companies listed on the Iraqi Stock Exchange
DOI:
https://doi.org/10.31272/jae.i142.1037Keywords:
The financial markets, The Iraqi Stock Exchange, The maximum value theory, extreme valuesAbstract
The market value of a stock is one of the most important values around which most financial decisions revolve. Therefore, the interest of specialists in the subject of analyzing the market value of stocks has increased, which has occupied a large part of the debate about choosing the appropriate analysis method, especially after the crises that the financial markets have faced in recent years, and this has generated several models. Theories attempted to analyze stock prices, which in turn produced different results, each according to the method of analysis. The main thrust of the study lies in using the maximum value theory, as it is considered one of the modern analytical methods for analyzing the market value of stocks, which can detect extreme events and deal with them. The study aimed to discover the maximum values using this theory in the Iraqi Stock Exchange, and based on the problem of the study, which was represented by the question: The extent to which the maximum value theory is possible in discovering the maximum or extreme values in the market values of company shares. The main hypothesis was developed, which is that maximum values appear. (Extreme) High or low in the market values of shares of companies listed in markets with weak efficiency. To achieve the goal of the study, three companies listed in the Iraqi market were selected, based on daily stock prices for the period (2017-2021). The study recommended the necessity of realizing the importance of the maximum value theory as one of the analysis tools capable of responding to and dealing with extreme events that appear in crises. It also recommended not neglecting extreme values because of their significant impact on the analysis and decision-making process.
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