The effect of the actual growth rate on the financial stability of joint-stock companies listed on the Iraq Stock Exchange

Abstract

The study aimed to measure the actual growth rate, to identify its impact on the joint-stock companies, the study sample, on their financial stability, as the study problem was identified with a number of questions, the most important of which were “What is actual growth and what are its mechanisms for industrial joint-stock companies listed in the Iraqi Stock Exchange? And the size of the effect between actual growth and the financial stability index?

In order to achieve the objectives of the study and answer its questions, the companies listed on the Iraqi Stock Exchange were tested as a community for the study. A sample of (10) industrial joint-stock companies was selected, using the data published on the website of the Iraqi Stock Exchange for the period from 2009 to 2019. Many financial and statistical indicators were relied upon to analyze the results and discussed them using the (Excel) and (Eviews-9) program in analyzing the results. The study concluded that the actual growth depends on the ratios of the return on assets and the percentage of retained earnings, due to the different rates of growth and activity at the level of each company, and that the joint-stock companies whenever they can improve and provide sources of financing for growth whenever this leads to achieving financial stability.