The relationship between financial engineering and financial performance with internal control as a moderator in Iraqi banks
<p>The purpose of this study was to examine the relationship between financial</p><p>engineering and financial performance using internal control as a moderating variable in</p><p>Iraqi banks. A quantitative approach using Structu...
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| Format: | thesis |
| Language: | eng |
| Published: |
2020
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| Subjects: | |
| Online Access: | https://ir.upsi.edu.my/detailsg.php?det=7145 |
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| Summary: | <p>The purpose of this study was to examine the relationship between financial</p><p>engineering and financial performance using internal control as a moderating variable in</p><p>Iraqi banks. A quantitative approach using Structural Equation Modeling (SEM) was utilized as</p><p>research design to answer six research questions and ten hypotheses. The sample consisted</p><p>of 377 respondents comprising managers (n=49), account managers (n=177), audit managers (n=61),</p><p>finance managers (n=90) from 710 Iraqi bank branches that were selected using a stratified</p><p>random sampling. Seven sets of questionnaire were used as instrument to collect the data. SEM was</p><p>used to analyze the data. In general, the result showed a strong and significant</p><p>correlation (r=0.85; p<0.05) between financial engineering and financial performance</p><p>as perceived by the respondents. Specifically, the findings showed a positive relationship</p><p>between financial engineering factors, namely, investment strategies (=0.311, p<0.05),</p><p>market innovation ( = 0.293, p<0.05), process innovation ( =0. 0.214, p<0.05) and</p><p>risk management ( =0.238, p<0.05) with financial performance of Iraqi banks with the</p><p>exception of technological innovation ( = -0.042, p> 0.05). Furthermore, this study</p><p>found that internal control (r=0.78;<0.05) acted as a moderating variable between financial</p><p>engineering factors and financial performance. In conclusion, this study found that financial</p><p>engineering factors have positive effect on financial performance. In addition, internal control</p><p>has acted as a significant moderating variable between financial engineering factors and financial</p><p>performance in Iraqi banks. The implication of this study suggests that banking system in Iraq to</p><p>focus on financial engineering factors which have effect on financial performance and internal</p><p>control serves as influential moderator</p><p>between financial engineering factors and financial performance.</p><p></p> |
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