Roles Of Capital Structure On Banks Profitability; Case Study From Commercial Banks In Iraq

Abstract

Capital structure decisions of corporations received a great deal of attention in the finance literature. The decision on how to finance the operations of a corporation has an important role in its financial performance. Against this background, this paper examines the impact of capital structure decisions on the profitability of commercial banks listed on the Bagdad Stock Exchange for the period from 2009 to 2020. According to the findings, commercial banks with higher debt ratios tend to have lower profitability in Iraq. This finding is robust against a series of control variables, including different debt ratios and profitability measures.