The impact of sustainable growth rate in enhancing financial solvency

A survey study of a sample of industrial sector companies listed on the Iraq Stock Exchange for the period (2011-2021)

Abstract

1. Purpose: The current research seeks to test the impact of the sustainable growth rate, which is represented by (actual growth rate, sustainable growth rate) as an independent variable, on financial solvency, which is represented by (debt-to-total assets ratio, debt-to-total equity ratio) as a dependent variable, and to determine the type of relationship between the research variables in the industrial companies of the research sample.
2. Research design: The analytical approach was relied upon for the research, and in order to achieve the research objectives and answer its questions, the research was tested on a sample of joint-stock industrial companies, using the data published on the website of the Iraq Stock Exchange for the period from (2021-2011), and the sample included (10) joint-stock industrial companies. It sought to test the sub-hypotheses related to the relationships of influence between the current research variables, to answer the questions related to the study problem and reach the set objectives, and in order to process the data, many financial equations and statistical methods were used and the results were extracted using (10-Eviews) programs.
3. Most important results: The most important finding of the research is that a one-unit increase in the sustainable growth rate helps in achieving financial solvency for the industrial companies in the research sample listed on the Iraq Stock Exchange. This explains that the sustainable growth rate increases the ability of companies to meet their financial obligations in the long term and in the best possiblway