The Impact of Some Determinants of the External Financial Environment on the Financial Sustainability of Business Companies: An Analytical Study in a Sample of Companies Listed in the Iraqi Stock Exchange

Abstract

The aim of the research is to analyze the level of financial sustainability in companies and the effect of some determinants of the external financial environment on the financial sustainability of Iraqi business companies. The research was based on a set of determinants (inflation, interest rates, per capita income, market share), and Fulmer model was used to measure financial sustainability. For companies and their ability to continue. The Iraq Stock Exchange was relied on as a research community, and five of the industrial companies included in it were identified as a research sample. Data contained in their financial statements for period (2010-2019). Therefore, the mechanism for building and analyzing standard models will depend on Sectional time-series data ((collected) Panel Data or longitudinal data). The results of the research showed that the research sample companies are characterized by financial sustainability. The results also showed no impact on the determinants of the external financial environment combined on the financial sustainability of the research sample companies. In relation to the analysis of the effect determinants of the external financial environment separately on the financial sustainability, the results of the research concluded that each of the variables of the interest rate and the market share of the company affect the financial sustainability of the company individually. Yet, the inflation rate and the average per capita income do not have a significant effect individually on the financial sustainability for the companies.