Measuring the Extent of Liquidity's Impact on the Financial Structure

Ali Abdulhassan Abba, Ayat Amer Hadi, Amna Abbas Muhammad
International Journal of Finance, Insurance and Risk Management, Volume 13, Issue 2, 132-166, 2023
DOI: 10.35808/ijfirm/359

Abstract:

Purpose: 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). Design/Methodology/Approach: 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, a number of hypotheses regarding the regression have been realized, and some of them were counterproductive, and the reasons for this were explained. Findings: As for the most important finding of the study is that the financial structure of the company depends largely on debt, which makes it lose flexibility, and that cash liquidity is insufficient to meet the company's short-term obligations. Practical Implications: The most important recommendation was to raise the market value of the company's shares and approve financing through stock offering. Originality/Value: The need to appoint experts in the field of advanced financial analysis in the company in order to develop financial plans.


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