Effect of Financial Independence on Reducing Risk of Financial Fragility

• Autores: Saad Majeed Al Janabi, Mohammed Hamed Mohammed Albander, Saoud Jayed Mashkour
• Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 8, Nº. 6, 2023 (Ejemplar dedicado a: Continuous publication; e01278)
• Idioma: inglés
• DOI: 10.26668/businessreview/2023.v8i6.1916
• Enlaces
  • Texto completo (pdf)
• Resumen

  • Purpose:This research aims to know and measure the impact of financial independence on financial fragility and to provide an applied knowledge framework that shows the relationship between these variables.

      Theoretical framework:  and the research problem was represented in several questions, such as can financial independence reduce the financial fragility of the research sample companies?; and what is the level of financial independence and financial fragility of these companies?.

      Design/methodology/approach: Financial and statistical methods were relied on using the (SPSS) and (Excel) software. To answer these questions, test hypotheses and analyze the relationship between independent and dependent variables , several conclusions were reached, the most important of which is financial independence when companies reduce their dependence on debt and increase their dependence on internal resources as a main source of financing. Based on the conclusions, a set of recommendations was reached. The most important of which is the attention to restructuring the sources of financing for companies with high financial fragility, which contributes to increasing financial stability and reducing financial risks to a minimum.

      Findings: The research was based on a sample consisting of (6) industrial companies listed in the Iraqi Stock Exchange for the period from (2011-2020).

      Research, Practical & Social implications: The importance of the research lies in the fact that it has exploited the concepts of financial independence as it leads to reducing risks and assisting companies in reducing financial risks and reaching the required levels of performance, growth and continuity in a highly complex, unstable and limited environment, as well as contributing to urging companies to reconsider financial resources, and ways to benefit from it, which contributes to reducing costs and risks and increasing profitability.

      Originality/value: The importance of the current research is highlighted by delving into very important topics for industrial companies, as the concepts of financial fragility and financial independence are of increasing importance in the current era, especially in light of the competitive environment, high costs and difficulty in obtaining financial resources.

• Referencias bibliográficas
  • Abbas, F. H., Abd, W. H., & Kareem, A. D. (2020). The role of the internal auditor in clearing the debit and credit balances of the financial...
  • Abbas, R. A. (2022). The Impact of Financial Efficiency in Reducing Financial Fragility" MA Thesis, College of Administration and Economics,...
  • Abd, w. H., Kareem , A. H., & Dakheel, A. k. (2019). Audit Program Proposal for Local Accounts Auditors: Applied Research on a Group of...
  • Abd, W. H., & Kazem, D. A. (2022). THE RELATIONSHIP BETWEEN THE BALANCED SCORECARD AND THE COBIT-5 CRITERION IN IMPROVING BANKING PERFORMANCE,...
  • Agliari , A., Gatti , D. D., Gallegati M , M., & Lenc. (2006). ). The complex dynamics of financially constrained heterogeneous firms....
  • Al-Amiri, M. A. (2001). , "Financial Management", College of Administration and Economics, University of Baghdad. (1 ed.). IRAQ.
  • Al-Atwi, M. H. (2018). Using indicators of financing sustainable growth in reducing financial fragility, a comparative study between Iraqi...
  • Ali, R. H., Abd , W. H., & Kareem, A. D. (2022). The role of the Federal Office of Financial Supervision in auditing industrial activity...
  • Al-Janabi, S. M. (2019). The effect of diversifying the investment portfolio in reducing financial risks, an analytical study in a sample...
  • Al-Hassani, W. H., & Al-Jabri, A. J. (2021). A proposed model and program for evaluating banking performance according to the international...
  • Al-Jubouri, H. J. (2017). Using financial flexibility to reduce the fragility of banks, an analytical study in several commercial banks listed...
  • Al-Sultan, Q. S. (2021). The extent of the response of working capital management to non-performing assets and its impact on banking fragility,...
  • Al-Zubaidi , H. M., & Al-Jazrawi, I. (1998). Modern Financial Management (1 ed.). Amman: Safaa Publishing and Distribution House.
  • Asogwa, I. E. (2005). Traditional Budgeting in Today’s Business Environment. Journal of Applied Finance & Banking, pp. 110-120.
  • Badara, M. (2013). Impact of the Effective internal Control System on the Internal Audit Effectiveness at Local Government Level. Journal...
  • Badarna, M. S. (2013). Impact of the Effective internal Control System on the Internal Audit Effectiveness at Local Government Level. . Journal...
  • Barrena, B. A. (2019). AYCO'S Financial development through its liquidity, solvency and profitability ratios (10 ed.). Spain: CUNEF.
  • Barry, M., & Mark, M. (2006). Barry, Mcnulty& Mark, Mcnulty, (2006), the Canadian small business owners guide to financial independence,...
  • Bracons, O. A., Goodhart, C. A., Tsomocos, D. P., & Zicchino, L. (2006). Towards a Measure of Financial Fragility. Discussion Paper 554.
  • Bracons, O. A., Goodhart, C. A., Tsomocos, D. P., & Zicchino, L. (2006). Towards a Measure of Financial Fragility", DISCUSSION PAP...
  • Braiotta, L. (2010). The Audit Committee, Handbook, Fifth edition , . Library of Congress Cataloging.
  • Brunetti , M., Giarda , E., & Torricelli, C. (2012). Is financial fragility a matter of illiquidity. An appraisal for Italian households",...
  • Calomiris, C. W. (1995). Financial Fragility: Issues and Policy Implications. Journal of Financial Services Research, 9, 241-257.
  • Chletsos ,, M., & Andreas , S. (2021). "The effect of financial fragility on employment", Elsevier B.V. ELSEVIER, 94, 104- 120.
  • Daujotaitė, D., & Mačerinskienė, I. (2008, 5 16-17). DEVELOPMENT OF PERFORMANCE AUDIT IN PUBLIC SECTOR. FINANCE ENGINEERING. 5th International...
  • Diamond, J. (2002, 5 1). The Role of Internal Audit in Government Financial Management. International Monetary FWld , pp. WPI02/94,1-35.
  • Donelson, D. C., Ege, M., & McInnis, J. M. (2017, 8 ‏1). Internal control weaknesses and financial reporting fraud. Auditing. Journal...
  • Ebrahim, A. (2014). IFRS compliance and audit quality in developing countries: The case of income tax accounting in Egypt. Journal of International...
  • El-Toby, B , H. M., Kareem , A. D., & Abd, W. H. (2022). The possibility of applying international accounting standards in the public...
  • Filho, E. T., Martins, N. M., & Miaguti, C. Y. (2017). Minsky's Financial Fragility: An Empirical Analysis of Electricity Distribution...
  • Gatti, D. D., DI Guilmi, C., Gaffeo, E., Giulioni, G., Gallegati, M., & Palestrini, A. (2005). A new approach to business fluctuations:...
  • Guia, L. D., & Dantas, J. A. (2019). Value Relevance Of Tax Assets In The Brazilian Banking Industry" , Revista Contabilidade &...
  • Haddad, A., Ei Ammari, A., & Bouri, A. (219). "Are Islamic banks really more solvent than conventional banks in a financially stable...
  • Haldane, A., Saporta, V., Hall , S., & Tanaka, M. (2004). Financial stability and macroeconomic models. Bank of England Financial Stability...
  • Hall, G. (2012). , achieving financial independence, Clark college career services. RD: Clark college.
  • Harrington , C., Smith , W., & Trippeer, D. (2012). Deferred tax assets and liabilities: tax benefits, obligations and corporate debt...
  • Hay, D., Knechel, W. R., & Ling, H. (2008). Evidence on the Impact of Internal Control and Corporate Governance on Audit Fees. International...
  • Hayes, R. (2005). Principles of Auditing. British: Library Catalog-in-Publication.
  • Hemmesaker, E., & Nelfelt, V. (2018). catch the dream of financial independence, a study about how you can impact your retirement saving...
  • Hussein, A. I., AI-saqa, Z. H., & Mahmod, S. M. (2020). Enhancing financial efficiency under IFRS standards to reduce financial fragility:...
  • Isa, W., & Mahardika, M. C. (2021). "Effect of Solvency and Liquidity on The Profitability of Property Companies Listed on The Sharia...
  • Kalash , I. A. (2010). Working Capital Management and its effect on Profitability of the Firm "An Analytical Study of Industrial Firms,...
  • Kareem, A. D., Jabr, A., & Abd, w. H. (2022, 9 19). The transfer of powers and its role in unifying the products of accounting systems...
  • kieso Weygandt, D. j. (2016). Intermediate Accounting .
  • Madume, J. V., Samuel, D., & Ebiware, A. (2018). Effects of Total Debts to Total Assets on Return on Assets of Deposit Money Banks in...
  • Mohamed El-Toby, B. H., Abd, w. H., & Kareem, A. D. (2022, 11 25). ACTIVATING THE ROLE OF JUDICIAL OVERSIGHT IN IRAQ TO REDUCE THEPHENOMENON...
  • Moqari , H., & Barber, F. (2013). Sources of Funding in the Economic Organization, Case Study of the National Paint Organization (ENAP),...
  • Nguyen, C. V., & Nguyen, L. N. (2019). (2019), factors affecting the level of financial independence of listed manufacturing companies:...
  • Nguyen, T., & Pham , D. (2017). tax book of financial statement analysis led, national economics university.
  • Rihan, S. (2007). Financial stumbling, stages, causes, methods and treatment procedures. Journal of Social and Human Sciences, 8(16).
  • Schinasi, G. (2005). "Maintaining Financial Stability, Economic Issues", No. 36, International Monetary Fund, www.imf.org/external/pubs.
  • Schroeder, S. (2009). (Defining and detecting financial fragility: New Zealand's experience. International Journal of Social Economics,...
  • Simunic, D. A., Ye, M., & Zhang, P. (2017). The joint effects of multiple legal system characteristics on auditing standards and auditor...
  • Zavalko, N. A., Panina, o. v., & Kovalev, V. A. (2017). Improving financial control over the government system. .Espacios, ‏, pp. 38(29),...
  • Zulfa R., R. H. (2019). The Effect Of Tax Planning And Deferred Tax Liabilities On Earns Management". Economic and Accounting Journal,...