The Role of Cash Flows in the Profitability of the Bank - Applied Research in A Number of Iraqi Private Banks

Abstract

Commercial banks are considered as one of the pillars of the economic structure and one of the important tracks approved in the development of various economic sectors. Accordingly, the research dealt with the issue of the role of cash flows in the profitability of the bank and it sought to achieve a set of cognitive and applied goals, including theoretical and applied scientific investigation of cash flows through selecting (4) Iraqi private banks for the period (2009-2018). The problem of the research lies in the dialectic of the relationship between cash flows and the profitability of the bank, therefore a set of questions and two main hypotheses that reflect the link and the effect between the variables that are the subject of the research have been formulated to achieve the goal of the research and the mutual relationship between the variables of the research and to show the most important and necessary relationships and morale to get to the results of the impact of the independent variable in the dependent variable according to statistical tests used for this purpose. The (cash flows) have proven insignificant correlation with the profitability of the bank, which means the poor awareness of the banks for the importance of cash flows in the profitability of the bank, and this was confirmed by the first main hypothesis. Financial indicators were used for the analysis that express the cash flows and profitability of the bank for the research. Also (cash flows) proved an insignificant effect on the bank’s profitability.