Cover
Volume 7, Special Issue 4 (2026)

Published: August 25, 2026

Pages: 88-97

Research Article

The effect of changing the capital structure on financial stability: An applied study of a sample of Iraqi banks in the Iraq Stock Exchange for the period from 2015-2019

Muhammad M. H. Al-Ghazali 1 Ali A. Al-Fatlawi 2 Zaid A. Mardan 1
1Department accounting, college administrative and financial sciences, university Ja'far al-Sadiq, Najaf Branch, Najaf Al-Ashraf, Iraq
2Department financial and banking sciences, college management and economics, university Kufa, Najaf Al-Ashraf, Iraq
History
  • Received: June 13, 2026
  • Available Online: August 25, 2026
DOI

https://doi.org/10.56967/ejfb2026921

Abstract

The research aims to understand the change in capital structure and its impact on financial stability, clarifying its features for decision-makers, thus enabling them to make sound decisions, especially investors. One of the most important objectives of the research was to determine the financial stability of the research sample during the research period, relying on the Altman model adopted in the financial stability process. The sample included five banks: (Bank of Baghdad, Bank of Babylon, Gulf Bank, United Investment Bank, and Sumer Bank). The research period was from 2015 to 2019. The researchers relied on financial analysis to present the results and clarify the nature of the relationship between the two variables. They reached a number of results, the most important of which is that the change in capital structure leads to an impact on the financial stability of the banks in the research sample. One of the most important recommendations reached by the research is the necessity of maintaining the capital structure from changes affecting it by relying on attracting investors, especially from outside the country.

Keywords

References

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