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International Journal of Chemistry, Mathematics and Physics (IJCMP)
[Vol-6, Issue-3, May-Jun, 2022]
https://dx.doi.org/10.22161/ijcmp.6.3.2
ISSN: 2456-866X
http://www.aipublications.com/ijcmp/ Page | 11
Investing on the Stock Exchange: determining the essential
factors affecting Stock Exchange Investment
Diyar Abdulmajeed Jamil1, Saif Qudama Younus2, Zaid Saad Ismail3, Idrees Sadeq
Kanabi4, Baban Jabbar Othman5, Hawta Tareq Faieq6, Rozhgar Khorsheed Mahmood7,
Bayar Gardi8, Swran Jawamir Jwmaa9
1Department of Accounting, College of Administration and Financial Sciences, Knowledge University, Kirkuk Road, 44001 Erbil,
Kurdistan Region, Iraq.
2Department of Business Administration, College of Administration and Financial Sciences, Knowledge University, Kirkuk Road, 44001
Erbil, Kurdistan Region, Iraq.
3Department of Accounting, College of Administration and Financial Sciences, Knowledge University, Kirkuk Road, 44001 Erbil,
Kurdistan Region, Iraq.
4Department of Business Administration, College of Administration and Financial Sciences, Knowledge University, Kirkuk Road, 44001
Erbil, Kurdistan Region, Iraq.
5Department of Business Administration, College of Administration and Financial Sciences, Knowledge University, Kirkuk Road, 44001
Erbil, Kurdistan Region, Iraq.
6Department of Accounting, College of Administration and Financial Sciences, Knowledge University, Kirkuk Road, 44001 Erbil,
Kurdistan Region, Iraq.
Department of Accounting, Gasha Technical Institute, Erbil, Kurdistan Region, Iraq.
7Department of Accounting, College of Administration and Financial Sciences, Knowledge University, Kirkuk Road, 44001 Erbil,
Kurdistan Region, Iraq.
8Department of Accounting, College of Administration and Financial Sciences, Knowledge University, Kirkuk Road, 44001 Erbil,
Kurdistan Region, Iraq.
9Department of Business Administration, College of Administration and Financial Sciences, Knowledge University, Kirkuk Road, 44001
Erbil, Kurdistan Region, Iraq.
Received: 23 Apr 2022; Received in revised form: 10 May 2022; Accepted: 16 May 2022; Available online: 21 May 2022
©2022 The Author(s). Published by AI Publications. This is an open access article under the CC BY license
(https://creativecommons.org/licenses/by/4.0/)
Abstract— The goal of this study is to look into the factors that influence stock exchange investment in
Kurdistan, namely in Erbil. Emerging countries can leverage these marketplaces to develop their
economies as well, however some developing countries may be unfamiliar with the process. For firms
looking for profitable investment opportunities, the stock exchange is a popular option. Investors typically
take their chances in these markets based on researching predicted profits and dangers associated with
those investments, as these marketplaces are where monetary transactions are done. Investors typically
shun high-revenue investments due to the significant dangers associated with them, opting instead for low-
risk, low-revenue ventures. The current research was analyzed using a quantitative manner. Erbil was the
location of the research. Only 71 questionnaires were received and completed properly after the
researcher distributed 100 surveys. In order to uncover factors influencing stock exchange investment, the
researcher employed single regression analysis. The data show that the supply and demand element that
influences stock has the highest value, followed by the economy factor, the third component, competition,
and finally the politic element, which has the lowest value. According to the findings, supply and demand
seems to play an important impact in stock exchange investment in Kurdistan.
Keywords— Stock exchange, Investment, Erbil, Kurdistan.
Moussa et al.
International Journal of Chemistry, Mathematics and Physics (IJCMP), Vol-6, Issue-3 (2022)
http://www.aipublications.com/ijcmp/ Page | 12
I. INTRODUCTION
Recognizing the variables that influence stock exchange is
a critical aspect of stock exchange investment(Ankiewicz,
2021). The approach to economic development pursued by
numerous countries around the world may differ in
character(Jalari & Kurnianingsih, 2021). However, there is
fierce competition around the world for the same goal: to
rapidly improve the average wealth of their people.
Investments are regarded the cornerstone of sustainable
and well-rounded growth(Mugiarni & Wulandari, 2021),
thus governments should seek to increase (Dey, 2021)and
diversify their sources of investment to achieve this goal
(Teplova & Tomtosov, 2021). Individuals can invest their
money by assigning a certain quantity of money and
"operating(Hamad et al. 2021)" it in a variety of company
industries in exchange for a lucrative quantity of additional
revenue. Furthermore, investments are critical in speeding
up the growth process(Muniroh & Yuliati, 2021); yet, the
fundamental difficulty that investments face is the manner
in which they are operated, i.e., a shortage of investment
sources(Faraj et al. 2021). This problem can only be
resolved by establishing a comprehensive network of
financial institutions and organizations capable of directing
investments in the proper direction in order to generate the
needed income(Pereáñez, 2022). Stock exchanges (Akoi &
Andrea, 2020), on the other hand, are a fantastic place for
firms looking for investment possibilities to meet and
deal(Ali et al. 2021). Emerging countries can (Newall &
Weiss-Cohen, 2022)leverage these marketplaces to
develop their economies as well, however some
developing countries may be unfamiliar with the process
(Korn & Sorasart, 2022). For firms looking for profitable
investment opportunities, the stock exchange is a popular
option. Investors typically take their chances in these
markets based on researching predicted profits and dangers
associated with those investments (Gardi et al. 2021), as
these marketplaces are where monetary transactions are
done (Daniluk, 2022). Investors typically shun high-
revenue investments due to the significant dangers
associated with them, opting instead for low-risk, low-
revenue ventures (Akoi& Yesiltas, 2020).
II. LITERATURE REVIEW
Investments are regarded as one of the most important
economic activities because of the critical role they play in
achieving economic and social development (Metghalchi
et al. 2021), particularly because any initial increase in
investment (Qader et al. 2021) value eventually leads to an
increase in income value due to the investment multiplier,
and any initial increase in income will also lead to an
increase in investment value (Majeed, 2022). Every
investment opportunity (Hertina et al. 2021), on the other
hand, comes with a different set of risks and rewards (Akoi
et al. 2021). Some people believe that investing is a wise
decision (Ali et al. 2021) "Others see investments as
"giving up a sum of money for a set period of time in order
to get more cash flow in the future, thus compensating for
the loss of opportunities and the expected (Faeq et al.
2021) decline in the value of invested money due to
inflation, with the possibility of a future benefit attainable
through future consumption choice, (Paranita & Agustinus,
2021)" while others see investments as "giving up a sum of
money for a set period of time in order to get more cash
flow in the future, (Faeq, 2022) thus compensating for the
loss of opportunities, and the expected decline (Saragih et
al. 2021). Based on the foregoing (Bustani et al. 2021), it is
safe to argue that investment differs significantly from the
notion of saving, which entails "refraining from spending
money in the future in order to increase future
consumption (Ahmed & Faeq, 2020)." Saving involves no
risk (Bouzid & Makala, 2021). Return-on-investment
(ROI) is defined as "the profit made by the capital owner
in exchange (Faeq et al. 2021) for giving up his money for
the benefit (Hamza et al. 2021) of others for a specified
period of time," or " (Balqis et al. 2021) the price paid for
assuming risks or uncertainty factors" (Ali et al. 2021).
The greater the investor's desire to make more gains, the
greater the risks. Additionally, the longer the time between
the initial investment and the return-on-investment, the
greater the dangers (Asl et al. 2021). These dangers stem
from the unknown of whether or not a profit can be made
from a certain venture. There are two types of returns that
investors might expect in the capital market. The first is
the capital addition (Faeq et al. 2021), which is an increase
in the price of the offer, as well as the profit paid by the
company (Hamad et al. 2021). Because the variable will be
investigated, the stock exchange is an important aspect in
this investigation. According to (Pradhan et al. 2021),
stock exchange is defined as the level of benefit regarded
by a financial professional for their personal benefits and
investments (Akoi et al. 2021). Also, according to (Jareo &
Negrut,2016), stock exchange is defined as the total
growth or loss on an investment over a specified duration
(Muñoz et al. 2021). It's calculated by subtracting the
benefit's change in value from any money distributions that
occurred during the period from the investment's start-of-
period value. There are several factors that can influence
stock return, according to (Sharif, Et Al., 2015). For
example, (Hamza et al. 2021) one of the aspects that may
have an impact on stock return is the financial ratio, which
has made stock return predicting easier (Jadhav et al.
2021). Book-to-market ratios, debt-to-equity ratios, and
Moussa et al.
International Journal of Chemistry, Mathematics and Physics (IJCMP), Vol-6, Issue-3 (2022)
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dividend yield are some other characteristics that may
influence stock return (Ali et al. 2021). Conceptual Framework
The Research model can see at Figure 1
Figure 1-Research Model
Research hypotheses:
H1: There is positive relationship between economy
factor and stock exchange investment
H2:There is positive relationship between competition
factor and stock exchange investment
H3: There is positive relationship between politic factor
and stock exchange investment
H4: There is positive relationship between supply and
demand factor and stock exchange investment.
III. METHODOLOGY
The purpose of this research is to examine the factors
affecting stock exchange investment in Kurdistan and
particularly in Erbil. A quantitative method used to
analyse the present research. The questionnaire consisted
of two units, the first unit comprised of participants’
demographic questions (respondent’s age and
respondents’ gender. The second part of questionnaire
consisted of 8 questions for economy factor, 9 questions
for competition factor, 10 questions for politic factor,8
questions for supply and demand factor, and 12 questions
for stock exchange. The sampling method used in this
study was random sampling technique. The study was
carried in Erbil. The researcher distributed 100
questionnaires, only 71 questionnaires were received and
being completed properly. The questionnaire was
organized in multiple choice questions format. Five point
Likret scale used, the participants were asked to range
from strongly disagree to strongly agree.
IV. RESULT AND ANALYSIS
Table 1-Reliability tests
Variables
Cronbach’s Alpha
Number
of items
Economy factor
.832
8
Competition factor
.812
9
Politic factor
.799
10
Supply and demand
factor
.911
8
Stock exchange
.809
12
Table 1 shows the reliability analysis for four
independent factors and a dependent factor. According
to the reliability tests, the researchers found out
Cronbach's Alpha for the economy factor =.832 for
eight items, which are greater than .6 this means that
economy factor’s eight items were reliable for this
study. The Cronbach's Alpha for the competition factor
=.812 for nine items, which are greater than .6 this
means that competition factor’s nine items were reliable
for this study. The Cronbach's Alpha for the politic
factor =.799 for ten items, which are greater than .6 this
means that politic factor’s ten items were reliable for
this study. The Cronbach's Alpha for the supply and
demand factor =.911 for eight items, which are greater
than .6 this means that supply and demand factor’s eight
items were reliable for this study and finally the
Cronbach's Alpha for the stock exchange factor =.809
for twelve items, which are greater than .6 this means
that stock exchange factor’s twelve items were reliable
for this study.
Moussa et al.
International Journal of Chemistry, Mathematics and Physics (IJCMP), Vol-6, Issue-3 (2022)
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Table 2-Correlation analysis
Economy
Competition
Politics
Supply & demand
Stock
exchange
Pearson
correlation
.804**
.796**
.826**
.811**
.000
.000
.000
.000
71
71
71
71
** Correlation is significant at the 0.01 level (2-tailed)
Table 2 shows the correlation among four independent
factors (economy factor, competition factor, politic factor
and supply & demand factor) and a dependent factor
(investment in stock exchange). The value of R between
economy factor and stock exchange =.804** which
indicates that they are significantly correlated. The value
of R between competition factor and stock exchange =
.796** which indicates that they are significantly
correlated. The value of R between politic factor and
stock exchange = .826** which indicates that they are
significantly correlated.
The value of R between supply and demand factor and
stock exchange = .811** which indicates that they are
significantly correlated. The results revealed that overall
all variables are significantly correlated with dependent
factor.
Regression analysis
The researcher used single regression analysis to analyze
the current study. In terms of the first research hypothesis
a single regression used (as seen in table 3), with
economy as an independent variable and stock exchange
as the dependent variable.
Table 3-Coefficients H1
Model
Unstandardized
coefficients
Standardized
coefficients
t
Sig.
B
Std.
Error
Beta
(Constant)
.811
.878
.211
.061
.821
3.511
17.612
.000
.000
Economy
a. Dependent Variable: stock exchange
Table 3 shows the result of the first research hypothesis, the researcher found that the value B = .878 which is higher than
0.01, accordingly the result revealed that there is positive relationship between economy factor and stock exchange
investment.
Table 4-Coefficients H2
Model
Unstandardized
coefficients
Standardized
coefficients
t
Sig.
B
Std.
Error
Beta
(Constant)
.838
.862
.224
.054
.826
3.743
15.904
.000
.000
Competition
a. Dependent Variable: stock exchange
Table 4 shows the result of the second research hypothesis, the researcher found that the value B = .862 which is
higher than 0.01, accordingly the result revealed that there is positive relationship between competition factor and stock
exchange investment.
Moussa et al.
International Journal of Chemistry, Mathematics and Physics (IJCMP), Vol-6, Issue-3 (2022)
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Table 5-Coefficients H3
Model
Unstandardized
coefficients
Standardized
coefficients
t
Sig.
B
Std.
Error
Beta
(Constant)
.611
.632
.230
.056
.589
3.142
14.684
.000
.000
Politic
a. Dependent Variable: stock exchange
Table 5 shows the result of the third research hypothesis, the researcher found that the value B = .632 which is
higher than 0.01, accordingly the result revealed that there is positive relationship between politic factor and stock
exchange investment.
Table 6-Coefficients H4
Model
Unstandardized
coefficients
Standardized
coefficients
t
Sig.
B
Std.
Error
Beta
(Constant)
.367
.926
.268
.065
.896
3.142
14.262
.000
.000
Supply & demand
a. Dependent Variable: stock exchange
Table 6 shows the result of the fourth research
hypothesis, the researcher found that the value B = .926
which is higher than 0.01, accordingly the result
revealed that there is positive relationship between
supply & demand factor and stock exchange investment.
V. CONCLUSION
This study has analyzed factors affecting
investment in stock exchange in Kurdistan and
particularly in Erbil. Investigating the conditions
surrounding financial investment and accompanying
risks leads to achieving higher profits with fewer risks.
As such, risk analysis may have a positive impact on
decision-making(Hamza et al. 2021). The researcher
used single regression analysis in order to find factors
affecting investment in stock exchange(Jalari &
Kurnianingsih, 2021). The findings revealed that the
highest value among all variables was supply & demand
factor that influence stock, the second highest value was
for economy factor then the third factor was competition
factor and lastly the lowest value was for politic
factor(Ahmed et al. 2021). According the findings, it
seems that supply and demand play an essential role in
investment in stock exchange in Kurdistan.
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