Abstract

This study aims to use financial ratios to Kida model to predict the financial distress of the investment companies listed on the Iraq Stock Exchange , as well as to identify the extent of the statistical relationship of these ratios to earning per share (EPS) for those companies .The study used a descriptive statistical methods, in addition to A regression model to analyze the data and test hypotheses . Model included a number of independent variables marked by the profitability ratios and leverage , liquidity and activity. Based on the data (8) companies for three years , the results of this study demonstrated the ability of the companies to continue and distancing itself from financial distress ,the study also confirmed that the ratios of profitability ( return on investment) and activity (turnover of assets) statistically significantly relationship affect the earnings of these companies , as evidenced by the study of the relationship positive and very strong between the independent variables and dependent variable .

DOI:10.52113/6/2014-4-9/1-51