The Impact of Cash Flow on Firms' Financial Sustainability: An Applied Study on Joint Manufacturing Companies in Iraqi Securities
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Abstract
The purpose of this study is to explore the relationship between cash flows and financial sustainability of companies. Cash flows are among the important financial indicators that help in evaluating the financial performance of the company since they show its ability to generate cash from its operations, investments, and financing activities. Financial sustainability refers to the capacity of a firm to sustain profitability and growth in the long run without experiencing financial problems that can jeopardize its survival. Durable and reliable cash flows are the foundation for achieving this sustainability as they provide the necessary liquidity to meet financial obligations, exploit growth opportunities, and absorb sudden financial shocks.
The research is dependent on the analysis of five firms' financial information for a period of five years. The research focuses on the impact of the cash flows on a range of the financial measures that reflect the financial 0.0sustainability, e.g., the return on investment (ROI), cash flows from investing activity (CFIA). The information collected was analyzed using the panel regression analysis, although preliminary analysis such as descriptive statistics and correlation analysis had been done on the data.
sustainability, as measured by the return on assets (ROA) and return on investment (ROI) indicators. The p-values were 0.04 and 0.02, respectively, both of which are below the statistical significance level of 0.05. This confirms the existence of a statistically significant relationship between the main variables of the study.
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