The effect of financial sustainability on market value – A study in a sample of firms listed in Iraq’s securities market

Abstract

The study aimed at exploring the effect of financial sustainability on market value in the firms that are listed in Iraq’s securities market for duration (2015- 2019) where the effect of financial sustainability was measured by a group of indicators, the Panel Data Method was used and data of (31) firms listed in Iraq's securities market for duration (2015- 2019) were relied upon. The study concluded that most firms were financially sustained, that is, the study concluded with the existence of direct significant effect of financial sustainability of the firms on each of (return on assets, financial self-sufficiency, and debt ratio), inverse significant effect on ( availability of operating capital factor) and insignificant inverse effect on (return on investment).The study wrapped up with a group of recommendations, the most important of which are: the necessity of specifying a unit of measurement in Iraq's securities market to measure the financial sustainability of firms because it provides an acceptable level of financial solvency, cash, profitability, the eligibility for raising a loan and other financial indicators such as achieving long-term financial balance, and therefore it wards off future problems in the market, and also the necessity of considering the market value by management boards in the firms that are the sample of the study for its effect on market indicator and working on raising it effectively through considering financial sustainability for its direct effect that helps in raising market value.