IJEBM | Analysis of Accounting-Based Measures of Expected Returns: A Study of Private SME In Kurdistan

Indexing and Abstracting

Analysis of Accounting-Based Measures of Expected Returns: A Study of Private SME In Kurdistan

Bawan Yassin Sabir , Khowanas Saeed Qader , Pshdar Abdalla Hamza , Bayar Ali Ismeal , Sarhang Sorguli , Hassan Mahmood Aziz , Bayar Gardi , Govand Anwar

International Journal of Engineering, Business And Management(IJEBM), Vol-5,Issue-3, May - June 2021, Pages 63-72 , 10.22161/ijebm.5.3.7

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Article Info: Received: 06 May 2021; Received in revised form: 03 Jun 2021; Accepted: 09 Jun 2021; Available online: 22 Jun 2021

Abstract:

The research is going a novel route by investigating whether investors project previous performance into the future in order to come up with their estimates about future stock returns. The way earlier research estimates investors' expectations is to use experiments or surveys to determine those expectations. In contrast, we generate investors' expectations by taking stock prices, the book value of equity, and analyst earnings projections into consideration. The research was conducted in Erbil's SME. The researchers used a quantitative approach to evaluate the impact of Accounting-based will have significant influence on expected returns in SME in Kurdistan region of Iraq. The present thesis was analyzed using a questionnaire. Sample design is the technique or process that the researcher is able to accept in selecting objects for the survey is referred to as sample design. The research sample was chosen using a random sampling method and carried out in various locations in Kurdistan region of Iraq. A total of 175 questionnaires were issued, but only 162 participants completed them correctly. Thus, results are often debated because this metric is not frequently observable, exceptionally difficult to measure, and there is no generally accepted method for estimating its value. We argue that by definition, the standard for measuring a cross-section of future returns will provide statistical "proxies" that on average estimate future market returns across different asset classes. Although much work has been done on this measurement problem, as far as we know, no such approach exists. Nevertheless, it is important to take the findings of this study into consideration, especially given the following limitations. Similarly, we did not obtain subjective evaluations from expert informants as we did not have access to the necessary databases. The finding revealed that the accounting-based strongly predicts expected returns (Beta is weight .701, p.001), implying that accounting-based would have a clear beneficial relationship with expected returns based on this finding the research hypothesis is supported.

Keywords:

Accounting-Based, Expected results, small and medium enterprises, Erbil, Kurdistan region of Iraq.

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