Diversification of Investment and Its Impact in Stock Returns: A Comparative Analytical Study of a Sample of Banks Listed in The Iraq Stock Exchange for The Period 2007-2024

The study aimed to analyze the effect of investment diversification on the stock returns of Iraqi commercial banks within a high-risk and volatile environment. It stemmed from the problem of limited empirical evidence regarding the direct relationship between investment diversification and stock returns. The sample consisted of ten banks listed on the Iraq Stock Exchange during the period (2007–2024). Investment diversification was measured using the Gini–Hirschman Index, while stock returns were calculated based on standard market indicators. The study employed descriptive analysis and Panel Data techniques using Excel and EViews. The results revealed variation in the levels of investment diversification and stock returns and rejected the null hypothesis of no statistically significant effect, confirming a positive and significant impact of investment diversification on stock returns. The study recommends strengthening diversification strategies and enhancing risk management practices to improve market return stability.