Vol. 18, N°4 (2023)

116

89

The role of Z-score model for corporate viability assessment and financial changes in company value : "An applied study in the Iraq Stock Exchange"

Résumé

The study achieves a clear mechanism in how to calculate financial changes (positive and negative) in a practical way and away from speculation, personal judgment and efforts of companies in the hotel and agricultural sectors and those financially troubled for the period (2007-2018) in the Iraq Stock Exchange. For the purpose of measuring financial changes in companies, the research sample, the researcher used a (Z-score) model for companies.

The study found that the use of the Z-score model effectively contributed to determining financial changes (positive and negative) and determining the failure or success of companies, as it indicated that the National Company for Tourism Investments had indicated a continuous success during the years (2007-2018) as the value (Z) more than (2.60) and the company has succeeded in managing its money during all the years of the time series at very high rates, which indicates that the management is efficient and serious in its work and following up on the company's activities and protecting it from risks and the reasons that make it falter and that lead to financial failure.

On the contrary, the Iraqi company for the production of seeds was witnessing continuous failure during the first five years (2009, 2008, 2007, 2010, 2011) as the value of (Z) amounted to less than (1.10) and the company was exposed to accumulated deficit in it, but in recent years It has become difficult to distinguish and classify it as a successful or failed company. As the value of (Z) is between (less than 1.10 and greater than 2.60) and at the same time it was close to failure due to the existence of successive previous years of failure, as well as an increase The indebtedness ratio for (50%).

Which constitutes a difficulty in paying the company for its financial obligations, which we have shown from the above ratios that the management of the Iraqi company for seed production has failed miserably in managing the company's funds during all the years of the time series.

Comment citer cet article

Saifuldeen Malik ABED (2023), The role of Z-score model for corporate viability assessment and financial changes in company value : "An applied study in the Iraq Stock Exchange", International Journal of Management And Technologies Journal, Vol.18, N°4, pp:106-125.