Assessing the sustainability of Iraqi companies through the application of the Altman model and its impact on company value - an analytical study on a group of Iraqi companies

Abstract

The research aims to study the relationship of influence between the continuity of companies through the application of the (Altman) model and the value of the company in Iraqi industrial companies, and the extent of the usefulness of applying the (Altman) model in assessing the continuity of Iraqi companies and determining their ability to survive in the labor market. The research community consisted of a group of Iraqi companies belonging to the industrial sector. Three companies belonging to the Iraqi market were chosen due to the availability of their data in a complete manner: (The Clothing Production and General Trading Company - The Modern Sewing Company - The Baghdad Soft Drinks Company). The time limits were for the years (2019-2023). A positive relationship was found between company continuity through the application of the (Altman) model and company value, as increasing company continuity through the application of the (Altman) model and company value by one unit leads to an improvement of (0.760). The results also showed the significance of the relationship of effect with a value of (T) of (14.222), and the regression coefficients were constant with a value of (F) of (102.444), which contributed to explaining an amount of (0.230) of the allowed variance. The research recommended that the boards of directors of Iraqi industrial companies adopt the Altman Z-Score model as part of their quarterly reports, not just when preparing financial statements, to take corrective action before reaching the "danger zone."