The effect of strategic choice on financial performance

Abstract

The study aims to measure and analyze the strategic options of the banks, the study sample. The study dealt with the commercial banks listed in the Iraq Stock Exchange. (13) banks were selected for a time series that spanned (17) years (2005-2021), namely (Bank of Baghdad, National Bank of Iraq, and Commercial Bank , Middle East Bank, United Bank, Iraqi Investment Bank, Credit Bank, Gulf Commercial Bank, Mosul Bank for Development and Investment, Sumer Bank, Union Bank, Babel Bank, Economy Bank for Investment and Finance) in order to provide its data and information required in the study, based on the published reports In the Iraq Stock Exchange, the research applied and indicators of strategic choice represented by (capitalization, credit risk, diversification of assets, data envelope DEA) and financial performance indicators represented by profitability and liquidity (rate of return on assets and cash balance ratio). The strategic choice and financial performance data were analyzed in terms of the correlation and effect relationship between the independent variables and the dependent variable using the Excel2016 statistical program.

The study reached a set of conclusions, the most important of which is that there is no significant multi-impact relationship for the strategic option indicators in the rate of return on assets, and there is no significant multi-effect relationship for the strategic option indicators in the cash balance ratio..