Examining some determinants of the capital structure: a study of a sample of companies Listed on the Iraq Stock Exchange

Abstract

The research aims to research determinants that affect the capital structure of companies listed on the Iraq Stock Exchange and determine the extent of harmony with the results of research and other studies conducted on the capital structure of companies in other countries. To find out the financing reality of companies (the research sample) that achieves their ability And the competitive advantage compared to its performance in previous periods and with its counterparts in the market in addition to some targeted criteria. Multiple regression analysis has been relied on and the use of the fixed, random and grouping effect method using the SPSS 24 program). The research problem arises through the following question (Is there an effect of the internal determinants (company size, The age of the company, the tangibility of the assets, risks, and growth opportunities) and the external determinants (inflation rate, GDP growth, interest rate and exchange rate) in the capital structure of the industrial and investment sectors in Iraq). As for the research hypothesis, there is a variation in the impact of the positive and negative direction of the internal determinants (Partial indicators) and macroeconomic variables (macro indicators) in the capital structure of the industrial and investment sectors in Iraq). The study found a contrast the levels of influence of some determinants of the capital structure of the investment and industrial sectors in Iraq. The results of the research indicated that there is no significant statistically significant effect of independent variables in the capital structure, except for the size of the company, which has an adverse effect on the capital structure of the investment sector in Iraq. There is a significant, statistically significant effect for each of (the size of the company, growth opportunities, risks, and tangibility) in the industrial sector in Iraq. And this is due to many reasons, including what is related to the sample, its specifications and its structure, such as the sector itself. Especially from companies in which the results did not appear in a manner consistent with the standard aspect of the research sample, and the study suggested that finance managers must take into account current and future factors and determinants in order to address them, which are represented by internal factors. As for economic indicators, they must be adapted to and the necessary measures be put in place to limit their impact.