The Impact of Financing Structure Determinants on Financial Stability
An Analytical Study of a Sample of Iraqi Industrial Companies Listed on the Stock Exchange for the Period (2010-2022)
DOI:
https://doi.org/10.71207/ijas.v22i87.5817Keywords:
Financial Stability, Altman Z-Score Model, Capital Structure, Determinants of Capital Structure.Abstract
This research aims to analyze the impact of capital structure determinants (Size, Age, Tangibility, ROA, Growth, Liquidity, and NDTS) on the financial stability of (5) Iraqi industrial companies listed on the ISX for the period (2010-2022). Using a descriptive-analytical approach, the Altman Z-score model, and multiple regression, the results revealed a high explanatory power R2) ranging between 85% and 97% ) in most models. The study proved that "Firm Size" is the most significant determinant in enhancing financial security, followed by the "Current Ratio" in pharmaceutical firms, while identifying structural multicollinearity between variables. The research recommends strengthening the capital base to maximize economies of scale and adopting the Altman model as an early warning tool for financial distress, ensuring sustainable performance amid economic fluctuations.
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Copyright (c) 2026 Tabark Ali Abbas, Abdul-Hussein Jasim Mohammed, Mohammad Turki Abdul-Abbas
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