Estimating the optimal size of the company and its impact on market indicators: An applied study on a sample of companies listed on the Iraq Stock Exchange for the period (2010-2019)

Abstract

The study aimed to estimate the optimal size of the company and its impact on the financial performance indicators of the companies listed on the Iraq Stock Exchange, as the optimum size of the companies was measured using a production function, which is the Cob Douglas function, and the unbalanced data model was also used. Which combines cross sections and time series, based on annual data that included (57) companies listed on the Iraq Stock Exchange for the period from 2010 to 2019.The study found that there are companies that have achieved levels very close to the optimum size. As for the effect of the optimal size of the company on market indicators, the study found that there is a significant positive effect of the optimal size of the company on the market value and the number of shares traded.