Noor Ali Hussein, Abdl Hussein Jassim Al-Asadi

Abstract

The current study aims to test the capital structure within the framework of PIE theory, with its dimensions (retained earnings ratio, debt ratio, tangible assets, liquidity, company age, company size) and its impact on the added market value. This is based on the data and financial statements published in the Iraq Stock Exchange for Iraqi industrial companies, which number (21) companies, representing the total of the study population, and (10) companies were selected from them on the basis of the availability of the required data during the study period from (2010-2021) and these companies The selected sample represented the study. The problem of the study was represented by the intellectual debate about the optimal method for formulating the capital structure and the most successful method in making comparisons between internal and external financing for Iraqi industrial companies and determining the sources of financing that are appropriate to the Iraqi financial.