The Role of the Capital Structure in Supporting the Strength of the Budgets of Iraqi Companies for the Period (2008-2011)

Abstract

To play any economic unit to exercise its work to achieve its goals during the financial period, they should work to create the necessary funds for the exercise of various activities, and these funds are provided by the shareholders, but if the capital is not sufficient to meet the needs they resort to other sources, such as access on long-term loans, according to a number of variables such as the size of the company and the nature of its activity practiced, and these funds, whether provided by the shareholders or that have been borrowed called to the capital structure and have a direct impact on the financing of assets and of the right side of the balance sheet, it becomes this Money highly effective if the company was able to invest at a rate of return than the cost of loans.

                                The study concluded that the capital structure that supports the power budgets of companies contribute to Iraq through the financing of assets and support the rights of owners, so it has to be re-invested to achieve a return on these assets and increase property rights, so the study recommends improving the operational performance of the companies of the Iraqi contribution including the consequent increase in the rate of return on investment, without a change in the capital structure of the companies.