Financial risks and their impact on company value: Banks listed on the Iraq Stock Exchange as a model for the period (2011-2022)

Abstract

The research mainly aimed to analyze, estimate and explain the mechanism of influence that financial risks with their various indicators (liquidity risk CU, credit risk FL, capital risk CR) can exert on the company value (MVA) for a sample of banks listed in the Iraq Stock Exchange consisting of eight banks for the period (2011-2022). To achieve the goal, in addition to proving the hypothesis, the research relied on the balanced panel data methodology, and the experimental results showed that the negative impact of the liquidity risk and credit risk indicators on the company value, in addition to the insignificance of the impact of the capital risk indicator in the banks in the study sample. This shows that liquidity risks and credit risks play an important role in determining the market value of companies, as companies that manage these risks well show stability in their financial performance and market value.