Measuring the Impact of the Financial Structure on the Financial Performance of Commercial Banks Listed in the Iraqi Stock Exchange using the Panel Data Model

مؤسسة الشرق الأوسط للنشر العلمي

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الإصدار الثاني عشر: 6 سبتمبر 2021
من مجلة الشرق الأوسط للنشر العلمي

Measuring the Impact of the Financial Structure on the Financial Performance of Commercial Banks Listed in the Iraqi Stock Exchange using the Panel Data Model

Prof. Dr. Hussein Jawad Kadhum The Researcher Fatima Ali Muhamed
Abstract

This study aims at analyzing the relationship between the financial structure and the financial performance in the Iraqi commercial banks listed on the Iraqi Stock Exchange. A sample of (15) banks was selected for the period from 2009-2019. The financial structure was measured (as independent variables) by choosing indebtedness ratios represented by the ratio of the total debts to total assets, the ratio of total deposits and current accounts to total liabilities, and the ratio representing the ownership structure represented by capital and reserves to total assets. The financial performance indicators, on the other hand, were measured by the cash balance ratio (liquidity) and the return on assets (profitability). To measure this impact, the Panel Data model with its three models: Pooled Regression Model (PRM), Fixed Effects Model (FEM), and Random Effects Model (REM) were used. The results indicate that the financial structure in the Iraqi banks, the sample of the study, during the period of the study depends on the financial leverage represented by total debts to total assets with a greater percentage in raising the financial performance compared to internal funding sources

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