Employing the financing structure to reduce financial fragility using the Kida model - an applied study in a sample of private commercial banks listed in the Iraqi Stock Exchange

Abstract

This study aimed to identify the role of the financing structure variables in reducing the financial fragility of private commercial banks . In its practical aspect, the study relied on a set of published financial reports and statements for three of the banks listed in the Iraq Stock Exchange for the study period 2005-2019. And to test its main hypothesis, multiple regression was used by the method of regressive deletion. The study reached a set of results, perhaps the most important of which is that there is a direct effect with a moral significance between debt financing and financial fragility in the study sample banks. Traditional and modern hedging mechanisms that help it get rid of fragility, as well as the application of the Kida model to measure financial fragility and determine its financial position.