Management Role in predicting failure of corporate financial model framework Altman

An Empirical Study in a sample of industrial companies listed on the Iraq Stock Exchange
a Thesis Presented to

The Council of Administration and Economics College- Karbala University

As a Part of Fulfillments of M.Sc. in Banking & Financial Sciences

Presented by
Balassim Mohammad Ibraheem
Supervision by

Prof. Dr. Talal M. A. EL Jajawy

Abstract This study seeks to indicate the role of management to predict the failure of financial framework model Altman industrial companies listed on the Iraq Stock Exchange for these companies of the importance in being a tributary of important economic structure and its impact heavily on the national economy by contributing actor in advancing economic and social development. According to the offer came this research to demonstrate the role of management as a variable independent Bmngaradtha of (b organizational structure, which includes variables sub} efficiency of senior management, effective management information system, the quality of accounting information system, the effectiveness of the internal control system {, avoid creative accounting and variables subsidiary as follows :} consistency of accounting policies, the independence of the auditor {) to predict the failure of financial as a variable dependent dimensions represented by (b Working capital to total assets, retained earnings to total assets, earnings before interest and taxes to total assets, the market value to total liabilities, Sales to Total Assets). It was the use of the questionnaire as a tool to solicit the views of the study sample for the purpose of testing hypotheses have been induction reality of industrial companies and study aims to a statement attributed Altman to judge the success or failure of companies and predict failure of financial by applying analytical models (model Z-Score, model A-Score, which depends on factors descriptive) . and industrial companies suffer from problems in the collection of the debt and the inability to carry out the activities in a specific period of time and lack of awareness of the departments of industrial companies corporate exposure to risk failure in the future and lack of ratios used to predict financial failure. For the purpose of achieving the objectives of the research theory and field has been developed model hypothetically determines the nature of the relationship between the dimensions of the independent variable and variable adopted in order to detect the nature of this relationship has been formulated several hypotheses were tested using statistical methods and advanced application of statistical software For Windows-Spss18 were selected sample deliberate composed (6) All of this has been to reach a set of conclusions highlighted that the model Z-Score model realistic to predict the failure of financial and there is little effect between the administration and Z and that the small sample and the formulation of a number of recommendations, notably: the successful companies in the same level of activity in the near term and the companies threatened to fail to improve the level of performance and the establishment of long-term relationships with institutions Alastosmariakabry. We hope from God to help and guide.