The extent to which the capital investment decision responds to the characteristics of the quality of returns


  • Sarmad K. Jameel Department of Banking and Finance, College of Administration and Economics, University of Mosul, Iraq
  • Basam A. Abdullah Department of Accounting, University of Duhok (Visitor at Nawroz University), Kurdistan Region of Iraq



The study focused on testing the relationship between the capital investment decisions of industrial companies and the future returns by introducing quality returns models, given that the quality of returns represents the stability in profits in the future time period (returns). Industrial joint stock companies listed in the Iraq Stock Exchange for the period 2009-2017 using quarterly data, and in line with that, the study indicated testing a new entrance to measure the quality of returns based on the investment decision, and more specifically, the quality of returns was measured as a function and linking link to changes in the volume of capital investment It is based on returns, and also depends on returns in evaluating investments through the predictive ability of current returns for the continuity of returns in future periods. Changes in the investment decision increase after qualitative characteristics are included Returns, and therefore the quality of returns can be relied on in the interpretation of the capital investment decision, and the capital investment decision can be relied on in salaries, wages and capital expenditures to predict future returns. The study suggests the importance of expanding the scope of the current study to include other financial sectors and markets, given the importance of the different application environment in Show the disparity in the capital investment decisions taken by the management and according to the interpretation of the quality models of returns through them.


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How to Cite

K. Jameel, S., & A. Abdullah, B. (2021). The extent to which the capital investment decision responds to the characteristics of the quality of returns. Academic Journal of Nawroz University, 10(3), 400–414.