Predicting Financial Failure of a Sample of Iraqi Tourism Companies Using the Sherrod Model: An Applied Study

Abstract

The study aimed to know the extent to which tourist companies in Iraq are exposed to financial failure risks, by measuring the degree of risk using the Sherrod model, as well as knowing the ability of the model to predict the financial failure of Iraqi tourist companies during the specified period of the study, which is (2016-2021). The problem of the study stemmed from the question, including: Can the Sherrod model be applied to tourist companies in Iraq to predict their exposure to financial failure? The study was applied to tourist companies listed on the Iraq Stock Exchange for the academic period extending between (2016-2021) and the study sample was represented by (3) companies. To achieve the objectives of the study, the researcher relied on the applied approach by applying the study to the actual data extracted from the annual financial reports of companies on the official website of the Iraq Stock Exchange. For the purpose of analyzing the data and testing the hypotheses, the researcher relied on the Sherrod model to measure the ability of the model to predict the failure of tourist companies in the study sample. The results of the study from applying the Sherrod model to tourist companies showed that companies are difficult to predict the risks of exposure to financial failure