Liquidity risk management strategies and their impact on the added market value An analytical study of a sample of Iraqi banks listed on the Iraq Stock Exchange For the period (2005-2021)

Abstract

    This study aims to studying the strategies for cash flow risk management and highlighting the most important problems that cause cash flow problems in banks by analyzing some indicators and gaps that negatively affect the added market value of banks. It is possible to occur cash flow problems as a result of mismanagement of the budget assets or its responsibilities and the failure to choose the correct strategy for its management and control, as the responsibility for cash flow risk management rests with the bank’s managers mainly, and they have a major role in developing the bank’s cash flow risk management strategies and raising the bank’s added market value . In the practical side of the study, reliance was made on the financial reports and statements of the bank listed in the Iraq Stock Exchange. A sample of (11) banks from among a group of Iraqi private banks, and the period was chosen from 2005-2021 . Longitudinal data (Panel Data) was used for the purpose of studying the annual events during the study period. Microsoft Excel and the statistical program (Eviews V.12) were used to build and estimate financial models and analyze the effect relationship between the independent study variable and the dependent study variable. A set of Indicators for measuring variables, which are the index of cash, investments , deposits and property rights to assets, employment ratio, funding gap, funding gap ratio, liquidity gap, and liquidity coverage ratio. The study recorded a set of results, the most important result was the existence of a statistically significant influence relationship for cash flow risk management in the added market value.