Impact of finance structure within the in firm value framework of pecking order theory

Analytical study of a sample of industrial companies listed in the Iraqi Stock Exchange for the period (2004-2019)

A Thesis submitted to

the Board of the Faculty of Administration and Economics/ University of Karbala

which is part of the requirements for obtaining a master’s degree in Business Administration Sciences

By

Karrar Abbas Hussain AL Sharifi

Supervised by

Ass. Prof. Dr Hussam Hussein Shiaa Al Salami

The current study seeks to show the impact of the financing structure within the framework of the pecking order theory as an independent variable in enhancing the value of the company as a dependent variable. The study adopted, in its practical aspect, an intentional sample of the industrial sector companies listed in the Iraqi Stock Exchange, which numbered (6) companies, and the study adopted an annual time series represented in sixteen years, which is 2004-2019. The study relied on a set of financial indicators for the financing structure according to the study theory, which are the ratio of retained earnings, ratio loans, and the ratio of ordinary shares. The company’s value index, which is the closing price at the end of the year in the number of issued shares. And a set of statistical methods represented by Pearson correlation, simple linear regression, multiple regression, t-test, f-test and coefficient of determination (R2), using the statistical program (SPSSV.26). According to the study theory combined in the value of the company to the study sample companies.

Key words: – financing structure, pecking order theory, firm value.