The responsiveness of the capital investment decision to the returns quality characteristics


  • Sarmad K. AL-Jamil Banking and Financial Sciences Department, University of Mosul, Iraq



The study focused on testing the relationship between the capital investment decisions of industrial companies and future returns by introducing models for the quality of returns, given the quality of returns represented by stability in profits in the future period of time (returns). In order to test the research hypothesis, the characteristics of some types of quality of returns were measured for a sample of The industrial shareholding companies listed on the Iraq Stock Exchange for the period 2009-2017 using quarterly data, and in line with that, the study indicated a new entrance test to measure the quality of returns based on the investment decision, and more specifically the quality of returns was measured as the function and link to the changes in the size of capital investment Based on returns, it also depends on returns in evaluating investments through what the current returns contain in a predictive capacity of continuity of returns in future periods, and the study concluded that there is an effect of the quality of returns combined in the investment decision in capital expenditures and in salaries and wages, where the proportion of what is explained by the quality of returns Changes in the investment decision increase after qualitative characteristics are included Returns, and consequently, the quality of returns can be relied upon in the interpretation of the capital investment decision, just as it is possible to rely on the capital investment decision in salaries and wages and in capital expenditures to predict future returns, and 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 variation in the capital investment decisions made by management and according to the interpretation of the types of returns through them.


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How to Cite

AL-Jamil, S. K. (2020). The responsiveness of the capital investment decision to the returns quality characteristics. Academic Journal of Nawroz University, 9(1), 469–484.