The effect of financial leverage on indicators of financial fragility An applied study of a number of companies listed on the Iraqi Stock Exchange for the period (2014-2020)

Abstract

The study focused on testing the relationship between financial leverage and financial fragility within the sector of the studied companies to find out whether the financial leverage could affect the reduction of the financial fragility of Iraqi commercial companies, as the main objective was to indicate the importance of financial leverage and its impact on the fragility of the studied companies. The study of the companies listed in the Iraqi Stock Exchange, which numbered (82) companies, according to the reports published on the official website of the Iraqi Stock Exchange, a sample of (15) companies was selected and a set of statistical tools are used, and based on the statistical program (SPSS), and from The most important conclusions reached by the study is that there is a significant (inverse) relationship between financial leverage and financial fragility, as the higher the financial leverage, the lower the financial fragility. The degree of financial leverage rises in the degree of risk, as it was found through the descriptive analysis that the Iraqi Carpet Company achieved the highest percentage of the medium of sense Abe for leverage.