Financial leverage and its impact on enhancing the financial sustainability of industrial joint-stock companies listed on the Iraq Stock Exchange for the period from 2010 – to 2020

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Hayder Jasim Obaid, Hussein Allawi Jassim

Abstract

The research aims to test the relationship between leverage and financial sustainability of industrial joint-stock companies listed on the Iraqi Stock Exchange for the period 2010-2020 and to diagnose the importance of leverage and its impact on promoting financial sustainability in industrial joint-stock companies and the trade-off between the various sources of leverage available for financial sustainability. The research community includes 14 manufacturers. Twelve industrial joint-stock companies have been selected, and to process data, some financial equations and statistical methods were used, and the results were extracted using programs (Eviews-9). It is a positive effect and goes in the same direction (a negative relationship) and the need for companies to rely on a research sample for an optimal combination of their internal sources of financing. This is through the expansion of capital and retained profits and financial leverage (loans) to achieve financial sustainability. The findings show that the companies' sample research varies among them in terms of leverage. It is found through the results that all companies' sample research is characterized by financial sustainability but at different levels. The study recommends that the financial sustainability of the research sample companies in particular and all companies listed on the Iraqi Stock Exchange, in general, should be strengthened.

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