The Impact of Financial Inclusion on Stock Returns: An Applied Study on Commercial Banks Listed on the Iraq Stock Exchange

This study aims to examine the impact of financial inclusion on stock returns in a sample of commercial banks listed on the Iraq Stock Exchange: Ashur Bank, Investment Bank, Sumer Bank, Baghdad Bank, and Middle East Bank, covering the period from 2016 to 2022. Two primary indicators were used to assess financial inclusion: access to and usage of financial services, while stock returns were measured using the price-to-earnings (P/E) ratio. The study employed statistical tools using SPSS and Excel to test the hypotheses. Findings reveal a strong and statistically significant correlation and effect between financial inclusion and stock returns. Increased financial inclusion contributes to enhancing market stability, boosting trading volumes, and reducing volatility—factors that positively influence stock performance. The study recommends expanding financial inclusion policies to support investment performance in the banking and financial sectors.