The effect of indebtedness 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 aims to know the impact of indebtedness on indicators of financial fragility of a sample of Iraqi companies listed in the Iraqi Stock Exchange for the period from 2014 to 2020, to diagnose and indicate strengths and weaknesses. The problem of the study was launched: Is indebtedness affected by indicators of financial fragility in the research sample companies? It represents the research community in the Iraqi market for securities, based on annual reports, and financial analysis was used in the study to measure the indebtedness and financial fragility of commercial companies, the simple linear correlation analysis method was used And the simple linear regression method to know the effect between the variables, the study reached several conclusions, which is the existence of a significant (direct) correlation between the ratio of total debts to assets and the rate of profitability, as the higher the ratio of total debts, the higher the profitability rate, which indicates the rejection of the research hypothesis. And accepting the alternative hypothesis, there is a significant effect between (the ratio of total debt-assets) on financial fragility (the profitability rate). (Reformulation of the extract to show some words and their lack of coherence).