The role of the flexibility of the financial structure of companies in avoiding the financial crisis - an analytical study in the commercial banking sector listed on the Iraqi Stock Exchange for the period from (2006-2015)

Abstract

Financial crises are one of the basic features that characterize our current era, which threatens business companies and their sustainability. The research aims to delve into the contents of the current financial crisis, determine its causes and repercussions, and choose appropriate ways to address it by diagnosing the impact of financial flexibility in avoiding the financial crisis. The hypothetical and conceptual model has been developed. To search through a broad and in-depth review of the literature related to the two research axes, namely financial flexibility (leverage ratios, liquidity ratios) as the independent variable, and the financial crisis (capital adequacy ratio, profitability ratios, bad debt ratios, loan-to-deposit ratios) as the dependent variable, and represented The research community included commercial banks listed on the Iraq Stock Exchange, as (10) ten commercial banks were chosen as a sample for the research, and the time series for the research was (10) ten years from (2006-2015). The data was subjected to statistical analysis by employing a ready-made software package, primarily SPSS, V.23. The results have proven that there is a significant relationship between financial flexibility and its role in reducing the financial crisis. The research reached a set of conclusions, the most prominent of which is that financial flexibility explains the financial crisis at the overall level and at the level of sub-indicators.