Comparing the Effect of Intangible Assets and Macroeconomic Parameters on the Stock Prices in Firms Listed on the Stock Exchange of Iran, Saudi Arabia and Iraq

Abstract

Purpose: This paper aims to assess the effect of intangible assets and economic parameters on the stock prices of active firms in developing countries' capital markets.

Design/methodology/approach: For the study, Three economic settings of Iran, Iraq, and Saudi Arabia, as neighbouring developing countries, are selected during 2015-2019, and the combinational multivariate regression method is used to test the hypotheses.

Findings: Findings show that the effect of intangible assets on the stock prices in the economic Setting of Iran is positive and significant, while it is negative and significant in the Iraqi setting. On the other hand, the obtained results express that economic variables are also contributing factors to the capital market of developing countries. However, the effect of these factors is different in these three economic settings. On the other hand, the findings show that some of these indicators can affect the relationship between intangible assets and stock prices. The findings of the study are indicative of the existing reality in the economic setting of developing countries, such that given the economic instability and difference in economic and political conditions of such countries, the effect of a variety of factors on stock prices and in general the capital market is not the same.

Originality/value: This paper develops the literature related to contributing factors to stock prices in the emergent markets concerning different regulations of the capital market.