Measuring the Impact of Capital Market Structure Indicators on Financial Soundness

The research aimed to analyze the relationship between capital market structure indicators, such as the debt-to-equity ratio, foreign financing ratio, and equity multiplier ratio, and their impact on achieving financial soundness, as measured by the stability of financial institutions and their ability to avoid crises and protect investors, for the period 2011-2017 in the Iraqi economy. The research assumed that banks possess capital structure indicators that lead to the financial soundness of banks present in the Iraqi financial soundness market. Based on this, the research found clear variations among these banks during the same period. These variations indicate the potential impact of capital structure on financial soundness, which calls for further in-depth study to determine the nature of this impact and its determining factors. Accordingly, the research recommended that companies and banks attach utmost importance to strategically monitoring and improving capital structure indicators to achieve and enhance financial soundness and sustainable growth, taking into account market changes and various legislative requirements.