The Reflection of Unsystematic Risk on the Profitability of Share Investment an Applied Research in the Stock Market of Iraq

Abstract

The current research paper investigates the reasons behind unsystematic risks reflection upon stock exchange investment profitability, according to any company’s circumstances in addition to the data of internal environment, this is due to the fact that unsystematic risks are non- market risks arising from the company itself whether they resulted from the management or the investor, also they are part of the total risks of the company which effect the proficiency of the organization. Profitability is the main aim of all industrial and service organizations and of the investors in stock market as well. The stock exchange investment is regarded the widely – spread type of Business among OWNED financing. The statement of the problem has been selected for the lack of certainty which prevails the stock exchange together with the probabilities that the stock exchange investors may be subjected to risks and led to the fact that there are no procedures for protecting them. Certain kind of companies whose their shares are listed in the Iraqi stock market were selected as the sample of this research paper. From (84) companies the researchers chose only (30) companies from different sectors as: services sector, banking sector, insurance companies, investment companies and agricultural and industrial companies. The research has reached to many conclusions and recommendations like: coefficient of variation as a scale of unsystematic risk of the chosen companies indicates that a great fluctuation in its revenues compared to companies that showed reduction in the un systematic risk levels as a result of limited fluctuation of investment revenues. One of the main recommendations is that the investor should not take into his account the profitability of stock exchange as a basis to measure the unsystematic risk yet, he should pay attention to other factors related to unsystematic risk of those companies.