Evaluating the effectiveness of corporate finance strategies A study analysing a sample of industrial companies listed on the Iraq Stock Exchange for the period (2009-2019)

Abstract

The study aims to demonstrate the effectiveness of corporate financing strategies, whether through debt or equity. A set of indicators reflecting the study variables was used as proxies, including the equity ratio, debt ratio, equity-debt ratio, and the company's financing strategy. Additionally, a set of ratios reflecting the effectiveness of these strategies was employed, such as profitability ratios, liquidity ratios, the investment opportunity index, and earnings per share. To achieve this, the study adopted a set of hypotheses, which can be summarized as follows: (There is an impact relationship between corporate financing strategies and the indicators evaluating the effectiveness of corporate financing strategies). The study targeted five companies for the period (2009-2019), resulting in 55 observations that met the requirements for statistical testing. A number of appropriate financial and statistical tools were used. Microsoft Excel 2010 was used for financial analysis, and SPSS V.26 was used for the econometric aspect. The study reached several conclusions, most notably that the corporate financing strategy adopted by the companies in the study sample plays an active role, and that there is a significant inverse relationship between the return on assets and the market capitalization index