The Impact of the Political Instability on Bank’s Performance: Evidence from Iraq

Authors

  • Hamid Mohsin Jadah
  • Noor Hashim Mohammed
  • Mahadi Hasan
  • Adetayo Olaniyi Adeniran

Keywords:

Bank Performance, Iraq, ISIS, Panel data method, Political Instability

Abstract

    This study aims to empirically investigate the impact of political instability on bank’s performance. A sample of selected listed banks at the Iraq Stock Exchange (ISX) was used to test the aforementioned relationship. This study utilized secondary data collected from an annual financial report for selected banks. Moreover, Political instability indicators were collected through World Development Indicators databases. The impact of political stability and bank’s performance is tested for the pre- Islamic State of Iraq and Syria ISIS period (2009-2013) and during ISIS period (2014-2017). The study used panel GLS to attain the proposed objectives. Diagnostic tests such as heteroskedasticity, normality, serial correlation and multicollinearity were performed before employing GLS. The results revealed that there is a significant negative association between political instability and bank performance during-ISIS period. This research contributes knowledge in the field of political instability and bank performance in Iraq.That said, this paper provides significant contributions to the theoretical literature, the industy, and policymakers so that the Iraqi conventional banks' performance can be enhanced in the environment with chronic political instability.

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Published

2024-07-21

How to Cite

Hamid Mohsin Jadah, Noor Hashim Mohammed, Mahadi Hasan, & Adetayo Olaniyi Adeniran. (2024). The Impact of the Political Instability on Bank’s Performance: Evidence from Iraq. Iraqi Journal for Administrative Sciences, 16(65), 224–240. Retrieved from https://mail.journals.uokerbala.edu.iq/index.php/ijas/article/view/2121

Issue

Vol. 16 No. 65 (2020): Iraqi Journal for Administrative Sciences

Section

Articles

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