The Impact of Dividend Distributions on Stock Prices and Its Reflection on Firm Value

Mohammed Abdullah Al-Baaj, Qasim; Kazem Faleh Al-Jubouri, Huda

doi:10.33916/qjae.2025.Specialissue0190199

	The Impact of Dividend Distributions on Stock Prices and Its Reflection on Firm Value
AL-Qadisiyah Journal For Administrative and Economic sciences
Volume 26, Special 1, February 2026, Pages 190-199 PDF (541.32 K)
DOI: 10.33916/qjae.2025.Specialissue0190199
Authors
Qasim Mohammed Abdullah Al-Baaj^* ; Huda Kazem Faleh Al-Jubouri^*
University of Al-Qadisiyah
Abstract
This study aims to examine the relationship between dividend distributions and stock prices, focusing on selected financial indicators from the study sample, including earnings per share and the market-to-growth ratio, and their impact on the stock prices of Bank of Baghdad. The results reveal a positive relationship between retained earnings and per-share dividends, and an inverse relationship between per-share dividends and the number of outstanding shares. The study recommends improving trading, clearing, and settlement systems through electronic trading platforms to enhance efficiency, speed, transparency, and security in financial transactions. Furthermore, implementing remote trading services would enable brokerage firms to execute transactions from their offices without requiring on-site representatives. This research explores the connection between dividend distributions and the increase in stock market value, emphasizing the role of dividends in enhancing the economic unit value through the analysis of data and practical applications in various operational environments.

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