Financial Flexibility And Its Impact On Achieving Financial Recovery, Study For A Sample Of Iraqi Commercial Banks

Abstract

Tahseen Jumaah Dawood* and Faten Zoghlami Shili

Purpose: The aim of the current study is to identify the impact of financial flexibility in achieving financial recovery, through the use and employment of indicators of financial flexibility in achieving financial recovery for commercial banks listed in the Iraq Stock Exchange.

Theoretical framework: Financial flexibility is seen as multiple patterns that reflect the work of the characteristics and rules of each job, but it crystallizes around a specific topic, which is the ability of financial institutions to respond to environmental changes and fluctuations through their ability to take actions and decisions that direct and restore the functions of institutions and resources in a manner consistent with the development of goals and strategic vision of the management, thus achieving financial recovery and achieving an increase in the economic activity of the financial institution during the period of time through an increase in the value of assets.

Design and methodology: Multiple linear regression and statistical program (SPSS 26) were relied upon by analyzing the relationship between financial flexibility and financial recovery of Iraqi commercial banks during the fiscal period (2009-2020).

Results: The results showed that there is a statistically significant effect of indicators of financial flexibility on indicators of financial recovery of Iraqi commercial banks. Recommendations: The need for commercial banks to utilize a culture and philosophy of financial flexibility, because of its effective role in facing banking risks and achieving financial recovery for them, as this culture makes commercial banks able to confront them with financial crises.