The Application Of Automatic Linear Programming To Determine The Optimal Financial Structure
Purpose- The paper aims to know the role of automatic linear programming in determining the optimal financial structure. Design/ methodology/ approach- The current study is an applied study. The paper utilizes different indicators (measurements) for the financial structure, including financing with ordinary shares, financing with retained earnings, financing with loans, and financing with deposits. The optimal financing structure was also determined using automatic linear programming. Data were gathered from 20 Iraq Stock Exchange-listed banks. The study used 44 banks as a sample from 2015 to 2020, and it also adopted a financial hypothesis that the study sample banks rely on balanced financial structures in their operational operations . Findings - We conclude that the optimal combination that banks can use to fund their assets must rely primarily on finances with ordinary shares . Originality/value - To create profit and prevent future financial risks, the study sample banks must depend on an optimal financing mix indicated by funding with ordinary shares. Keywords: automatic linear programming, optimal financial structure, balanced financial structures, the optimal combination