The Financial Health and Firm Value of the Financial Institutions in the Iraqi Banking Sector

Raghda Abdul Rahman Kareem and Sundus Hameed Mousa ()
Additional contact information
Raghda Abdul Rahman Kareem: University of Kufa
Sundus Hameed Mousa: University of Kufa

A chapter in New Challenges of the Global Economy for Business Management, 2025, pp 1121-1133 from Springer

Abstract: Abstract The study examines the relationship between financial health indicators and corporate value in financial institutions in developing countries. The research relies on the quantitative approach to test the study hypotheses using a sample of Iraqi private commercial banks, which included (15) banks listed on the Iraq Stock Exchange for 2013–2022. The results show that four financial health indicators positively relate to corporate value in the sample banks: return on assets, return on equity, rate of return on funds available for employment, and net profit margin. The results confirm that understanding the financial position of banks is very important because banks are the most influential financial institutions in the economy, and their financial health describes their financial position. Moreover, the association between manager retention and bank success shows its importance to management. Good financial health indicators also reflect the bank's ability to continue and face risks and crises and keep pace with technological challenges and others, which attracts the attention of investors and thus the increasing demand to buy its shares, which leads to an increase in its share prices and thus its returns. The research contributes to the literature related to financial management in the banking sector by highlighting the critical direct relationships between financial health and corporate value in the banking sector in Iraq. He also points out that financial health and corporate value directly affect each other in developing countries.

Keywords: Financial health; Firm value; Banking sector; Emerging countries (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-96-4116-1_71

Ordering information: This item can be ordered from
http://www.springer.com/9789819641161

DOI: 10.1007/978-981-96-4116-1_71

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().