The impact of the financing decision on the company's life cycle: an analytical study of a sample of joint-stock companies listed on the Iraq Stock Exchange
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Abstract
The research aims to measure the relationship of financing decision indicators and their impact on the company’s life cycle, as indicators were used for the independent variable represented by the financing decision, which are (the ratio of liabilities to equity, the debt ratio). The use of the Dickinson model with its three indicators (net operating, investment, and financing cash flow) to demonstrate the stages of the company’s life cycle. The research was applied in the Iraqi Stock Exchange to a sample of joint stock companies consisting of (20) companies for the period (2013 - 2022), using a set of standard statistical methods and programs, including the program (Eviews v.12). To test the relationship between the research variables, and after analyzing the research data and testing its hypotheses, results were reached, the most notable of which is (the presence of a statistically significant impact of the financing decision with its indicators on the company’s life cycle for joint-stock companies listed on the Iraq Stock Exchange). As the results of testing the impact relationship showed that some hypotheses had There was a statistically significant impact on the company’s life cycle indicators, while others had an impact, but it was not significant. In addition, companies have a financing decision that affects the company’s life cycle, and based on the results that the researcher reached with a number of recommendations. The most prominent of which is that the management in joint stock companies take into account when making their decisions financing between choosing the optimal combination that keeps the weighted cost of capital at its minimum, in addition to taking into account the cost of obtaining money on the one hand and financial risks on the other hand.
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