THE DYNAMIC IMPACT OF LEVERAGE RISK AND CAPITAL STRUCTURE ON THE MARKET CAP OF COMMERCIAL BANKS: A STANDARD ANALYSIS USING THE (ARDL) MODEL OF A SAMPLE OF IRAQI BANKS

Autores

  • Noorh Adnan Ali College of Administration and Economics, University of Babylon
  • Mahdi Atiyah Al-Jubouri College of Administration and Economics, University of Babylon

DOI:

https://doi.org/10.18623/rvd.v23.5344

Palavras-chave:

Leverage, Capital Structure, Market Cap, Model (ARDL)

Resumo

This study aims to analyze the dynamic impact of leverage risk and capital structure on the market capitalization of a sample of Iraqi commercial banks listed on the Iraq Stock Exchange over the period 2004–2024, using annual time-series data. The Autoregressive Distributed Lag (ARDL) model was employed after testing the stationarity of the study variables using the Phillips–Perron test. The results of the bounds test indicate the existence of a long-run equilibrium relationship among the study variables. Furthermore, the ARDL model explains approximately 97% of the variations in market capitalization. The findings reveal that some leverage indicators have a statistically significant negative effect on market capitalization, while the impact of capital structure appears weak and varies in terms of statistical significance. Additionally, the regression results suggest that financing variables explain only a limited proportion of fluctuations in market value despite their statistical significance, reflecting the influence of other market and financial factors on stock pricing. This study provides empirical evidence from the Iraqi banking sector on the dynamic relationship between leverage, capital structure, and market capitalization within an emerging financial environment.

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Publicado

2026-04-20

Como Citar

Ali, N. A., & Al-Jubouri, M. A. (2026). THE DYNAMIC IMPACT OF LEVERAGE RISK AND CAPITAL STRUCTURE ON THE MARKET CAP OF COMMERCIAL BANKS: A STANDARD ANALYSIS USING THE (ARDL) MODEL OF A SAMPLE OF IRAQI BANKS. Veredas Do Direito , 23(6), e235344. https://doi.org/10.18623/rvd.v23.5344

Edição

v. 23 n. 6 (2026): Veredas do Direito, v. 23, n. 6 2026

Seção

Artigos

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