The Affect of the Financial Structure on the Industrial Firm value According to
MM& BFO Theories
(Comparative analysis study in a sample of Industrial Companies listed on the ISX and the ASE for the period
2009-2018)
A Dissertation Submitted By
Hussain Abd Al-Ameer Mezher
Supervised by
Asst. Prof. Dr. Asst. Prof. Dr.
Abd Al-Hussein Jassim Mohammed Ali Ahmed Fares

Abstract
This study aims to demonstrate the impact of capital structure and financing cost on the firm value under Modigliani & Miller theory and the Modern Theory of Capital Cost and Capital Structure (BFO).
In order to achieve the objective of the study, a deliberate sample of the industrial companies listed on the Iraq Stock Exchange and the ASE was adopted in the applied aspect, with (5) companies per market in the
light of the availability of data for analysis for the duration of the study (2009-2018).
The study was based on a set of financial methods according to the study’s two theories, and a set of statistical methods using (Excel) and (SPSS V.25).
The study presented several conclusions, the most important of which (The impact of the capital structure is not significance in firm value and this shows that the impact of the capital structure may be indirectly by
changing the cost of financing which in turn has had a direct and a significance impact on the value of industrial companies sample the study).
The study came up a set of recommendations the companies, the most important of which (Companies need to diversify their sources of financing in the construction capital structure and balance financing
decisions between debt and equity financing, thereby reducing the total cost of financing and reflecting positively on firm value. and The need depend on modern capital structure theories to build a capital structure increases firm value and reduces the cost of its financing. Especially the BFO).