The role of banking governance in improving the financial performance of banks and the use of the artificial neural network (ANN) model / an applied study in Iraqi banks listed on the Iraq Stock Exchange

الملخص

The aim of this study is to examine the impact of good bank governance on the financial performance of Iraqi financial companies. An analytical test was conducted on nine corporate governance indicators and eight financial performance indicators using the multiple regression methodology in the statistical program STATA and the Artificial Neural Network (ANN) model. The conclusions drawn from the test, which was conducted on 20 banks listed on the Iraq Stock Exchange for the period (2018-2022), indicate an influential relationship between governance indicators and financial performance. The results also confirmed that the ANN model enabled the ability to identify nonlinear relationships between variables, which enhances the accuracy of prediction and sensitivity analysis. By understanding and distinguishing between the effects resulting from specific causes, the study demonstrates that the financial position of a bank can be improved by selecting the right corporate governance indicators and implementing sound practices. This study contributes to a comprehensive understanding of how governance impacts financial performance. The findings have implications for academics and policymakers' decisions about what can determine increased financial performance. It recommends the need to enhance governance indicators, particularly the most influential indicators, to improve banks' financial performance. It also highlights the importance of adopting artificial intelligence techniques, such as neural network models, for data analysis and strategic decision-making