Measuring the Extent of Liquidity's Impact on the Financial Structure
Abstract
The study aimed to know the most important measures of liquidity affecting the financial structure, and the study was conducted on the Asia Cell Communications Company in Iraq and data were collected for the period (2009-2019), to achieve the objectives of the study, a time series analysis was conducted to find out the degree of financial stability, conducting autocorrelation relations, an analysis Simple linear regression, several hypotheses regarding the regression have been realized, and some of them were counterproductive, and the reasons for this were explained. The most important finding of the study is that the financial structure of the company depends on debt, which makes it lose flexibility, and that cash liquidity does not meet the company’s short-term obligations, and the most important recommendation was to raise the market value of the company’s shares and approve financing through a stock offering, and the need to appoint experts in advanced financial analysis in the company to develop financial plans.
Keywords
Full Text:
PDFReferences
Abbas, A. A. (2018). The bright future of Technopreneurship. International Journal of Scientific & Engineering Research, 9(12), 563-566.
Abbas, A. A. (2020). Educational Competiotion as a Moderating variable of the relationship between electronic management and intelligent organizations. Revista Tempos e Espaços em Educação, 13(32), 1-25.
Abbas, A. A., & Abd Ali, R. H. (2020). Viral Marketing and How to Make a Viral Bomb in the Digital Space to Invest the Pandemic COVID-19. International Journal of Multicultural and Multireligious Understanding, 7(4), 323-336.
Abbas, A. A., Abdulhassan, H. H., & Abbas, A. H. (2018). Study of Impact of the Capital Structure in Improving the Market Value of the Banks and Increasing their Profitability an Analytical Study of the Iraqi Banks Listed on Iraq Stock Exchange. Journal of Engineering and Applied Sciences, 13(8), 1991-2002.
Abbas, A. A., Mousa, H. M., & Ali, H. R. (2021). The Organizational Climate and its Impact on the Innovative Behavior of Auditors. Arab Journal of Administration, 41(1), 20.
Abbas, A. A., Obayes, A. K., & Abdulkadhim, A. Q. (2019). Use of CAMELS standard in the assessment of Iraqi commercial banks. International Journal of Multicultural and Multireligious Understanding, 6(3), 24-48.
Abdel Fattah, Bahira Mohamed Said. (2014). The Relationship between Capital Structure and Profitability of the Insurance Companies Operating in Jordan, Master Degree / Middle East University, Department of Accounting and Finance, Faculty of Business. Jordan. 1-94.
Abu Shaban, Walid Zuhair. (2017). The Impact of Liquidity and Investment Opportunities on Financial Structure: An Empirical Study of The Manufacturing Companies Listed in Palestine Stock Exchange, Master Thesis / The Islamic University–Gaza.Faculty of Commerce/Master of Accounting and Finance. 1-130.
AD. Rasoul. (2014). Capital Structure and Its Impact On Finance Decisions: Applied Study on A Sample of Listed Industrial Companies at Iraqi Money Stocks (2006-2011). Qadisiyah Journal of Administrative and Economic Sciences. Vol. 16. No.2. 116-132.
Ahmed Sheikh, N., & Wang, Z. (2011). Determinants of capital structure: An empirical study of firms in manufacturing industry of Pakistan. Managerial Finance, 37(2), 117-133.
AL saadi, Alaa Abdul Husein. (2012). Capital Structure and the variables Effect on it Empirical study on UAE listed companies. Gulf Economic Journal. No. 23, 136-158.
Al–Asadi, Abdul Al – Hussein Jasim Mohammed. (2005). the management of bank liquidity and its effect on return and risk/ An Applied study in Iraqi Government Banks, To the Council of the College of Administration and Economics, Kerbala University as a partial fulfillment of the Degree for Master in Business Management Sciences, 1-219.
Ali, M. F. A., & Abdulhassan Abbas, A. (2015). Companies bankruptcy prediction by using Altman models and comparing them. Research Journal of Finance and Accounting, 6(14).
Al-Masoodi, H. A., Al-Kawaz, S. M., & Abbas, A. A. (2020). Accounting Readings During the Time of Covid-19. International Journal of Multicultural and Multireligious Understanding, 7(5), 158-166.
Almeida, H., Campello, M., Cunha, I., & Weisbach, M. S. (2014). Corporate liquidity management: A conceptual framework and survey. Annu. Rev. Financ. Econ., 6(1), 135-162.
Alzubaidi, Hamzah, & Salameh, Hussein. (2014). Testing Some Determinants of Capital Structure “Evidence from Saudi Arabia” Analytical Study. Journal of King Abdulaziz University: Economics and Management. Vol 28, No. 1. 27-70.
Bauer, P. (2004). Determinants of capital structure: empirical evidence from the Czech Republic. Czech Journal of Economics and Finance (Finance a uver), 54(1-2), 2-21.
Bianchi, J., & Bigio, S. (2014). Banks, liquidity management and monetary policy (No. w20490). National Bureau of Economic Research.
Brigham, E. F., & Ehrhardt, M. C. (2016). Financial management: Theory & practice. Cengage Learning.
Brigham, E. F., & Houston, J. F. (2021). Fundamentals of financial management. Cengage Learning.
Campello, M., Giambona, E., Graham, J. R., & Harvey, C. R. (2011). Liquidity management and corporate investment during a financial crisis. The Review of Financial Studies, 24(6), 1944-1979.
Durbin, J., & Watson, G. S. (1950). Testing for serial correlation in least squares regression: I. Biometrika, 37(3/4), 409-428.
Farahvash, P. (2020). Asset-liability and Liquidity Management. John Wiley & Sons.
Fernandes, N. (2014). Finance for Executives: A practical guide for managers. NPVPublishing.
Field, A. (2003). Discovering Statistics Using SPSS for Windows. Trowbridge, Great Britain.
Ghosh, A. (2017). Capital structure and firm performance. Routledge.
Gupta, J., & Kashiramka, S. (2020). Financial stability of banks in India: Does liquidity creation matter? Pacific-Basin Finance Journal, 64, 101439.
Hassan, Saleh Zbar, & Alhadb, Mohamed Mofleh. (2017). The Impact of Capital Structure on the Quality of Earnings of Industrial Companies Listed on the Iraq Stock Exchange. Tikrit Journal of Administrative and Economic Sciences. Vol. 3, No. 39. 379-411.
Jadah, H. M., Hameed, T. M., & Al-Husainy, N. H. M. (2020). The impact of the capital structure on Iraqi banks’ performance. Investment Management & Financial Innovations, 17(3), 122.
Jiang, J., Xia, X., & Yang, J. (2019). Investment-based optimal capital structure. Applied Economics, 51(9), 972-981.
Kassem, Sabeeha and Jamil, Ahmed Nizar. (2009). Effect of cash flows on capital structure elements. Tikrit Journal of Administrative and Economic Sciences. Vol. 5, No. 14. 59-73.
Korajczyk, R. A., & Levy, A. (2003). Capital structure choice: macroeconomic conditions and financial constraints. Journal of financial economics, 68(1), 75-109.
Korajczyk, R. A., Lucas, D., & McDonald, R. L. (1990). Understanding stock price behavior around the time of an equity issue. In Asymmetric Information, Corporate Finance, and Investment (pp. 257-277). University of Chicago Press.
Levine, D. M. (1999). In Statistics for Managers; Levine, DM; Berenson, ML; Stephan, D., Eds.
Majid, Arshad Fouad. (2015). The Impact of Combine Level of Capital Structure and Dividend Policy on Firm Stock Price an apply study of companies listed on Amman Stock Exchange. Journal of Economic and Administrative Sciences. Vol. 21. No. 86. 1-24.
Miglo, A., Lee, Z., & Liang, S. (2014). Capital structure of Internet companies: Case study. Journal of Internet Commerce, 13(3-4), 253-281.
Mohsin,S.,Bashir, M.F.,&Bin Tariq,D.(2018).Outreach and Performance Analysis of Microfinance Banks in Pakistan.Syed Mohsin,Malik Faheem Bashir,Yasir Bin Tariq,(2018)"Outreach and Performance Analysis of Microfinance Banks in Pakistan",Business and Economic Review,10(3),1-28.
Özçelik, H., Arslan, Z. (2019). Effect of Financial Structure Ratios on Profitability: Panel Data Analysis on Manufacturing Sector, Journal of Business Research-Turk, 11 (1), 504-516.
Soprano, A. (2015). Liquidity management: a funding risk handbook. John Wiley & Sons.
Talberg, M., Winge, C., Frydenberg, S., & Westgaard, S. (2008). Capital structure across industries. International Journal of the Economics of Business, 15(2), 181-200.
Wang, Y. J. (2002). Liquidity management, operating performance, and corporate value: evidence from Japan and Taiwan. Journal of multinational financial management, 12(2), 159-169.
DOI: http://dx.doi.org/10.18415/ijmmu.v8i6.2827
Refbacks
- There are currently no refbacks.
Copyright (c) 2021 International Journal of Multicultural and Multireligious Understanding
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
https://ijmmu.com
editor@ijmmu.com
facebook.com/ijmmu
Copyright © 2014-2018 IJMMU. All rights reserved.