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Predicting the financial distress of companies using logistic regression and its impact on earnings per share in companies listed on the Iraqi Stock Exchange: Predicting the financial distress of companies using logistic regression and its impact on earnings per share in companies listed on the Iraqi Stock Exchange
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Abstract

The prevention of bankruptcy not only prolongs the economic life of the company and increases its financial performance, but also helps to improve the general economic well-being of the country. Therefore, forecasting the financial shortfall can affect various factors and affect different aspects of the company, including dividends. In this regard, this study examines the prediction of the financial deficit of companies that use the logistic regression method and its impact on the earnings per share of companies listed on the Iraqi Stock Exchange. The time period of the research is from 2015 to 2020, where 33 companies that were accepted in the Iraqi Stock Exchange were selected as a sample, and the research hypotheses were tested using normal least squares regression and logistic regression. The results of testing the first hypothesis of the research indicated that the results of the unidirectional logistic regression from Baytree indicated the confirmation of this hypothesis and it can be said with confidence that by combining accounting and market information, a suitable model can be used to predict the financial distress of accepted companies offered on the Iraqi Stock Exchange. The results of the second hypothesis of the research also showed that earnings per share is a predictor of financial deficit. Firms that predict fiscal deficit try to show lower earnings per share and try to be honest and by accurate prediction of earnings per share according to signal theory, they gain the trust of shareholders and creditors and assure that the company is trying to find a suitable solution for the current issue and other issues that may take place in the future.

Keywords: Predicting financial distress, logistic regression, earnings per share

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Publication Date
Wed Jun 17 2015
Journal Name
جامعة المستنصرية
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Journal Of Engineering
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Thu Feb 01 2018
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Journal Of Pharmacy And Biological Sciences
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Publication Date
Thu Oct 28 2021
Journal Name
International Journal Of Research In Social Sciences And Humanities
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Crossref
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Al-academy
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Crossref
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Tue Jan 01 2019
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Scopus
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Mon Sep 01 2014
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Journal Of Accounting And Financial Studies ( Jafs )
Electronic payments system and its relationship to the effectiveness of commercial banks: Applied Research
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Thu Oct 01 2015
Journal Name
Journal Of Engineering
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Publication Date
Sun Dec 01 2019
Journal Name
Journal Of Accounting And Financial Studies ( Jafs )
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