The Impact of Economic Value Added and Return on Equity on Banking Efficiency: An Applied Study on A Sample of Iraqi Private Banks for The Period 2013-2021

Abstract

The aim of the study was to analyze the impact of economic added value on banking efficiency in Iraq. The application of standard methods was adopted by applying the panel model based on time series data for the period (2013-2021) for a sample of Iraqi private banks. The results showed that the return on equity had a positive effect on the efficiency of banks, as well as the effect of the economic value added (EVA), which was also positive. The study was concluded with a set of recommendations, the most important of which is paying attention to the added economic value index and taking it into consideration alongside the traditional indicators, and spreading awareness within the banking environment of the importance of the new approach in measuring the added economic value of banks, as well as the need for Iraqi commercial banks to work on the continuous modernization and development of banking services that they provide. Its progress and to be a pioneer in all that is new at the level of financial and non-financial innovations and technology, through its use of added economic value, which reflects positively on its shares.