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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

The Impact of Strategic Agility in Reducing Liquidity Risks in Iraqi Commercial Banks

Mansoor Ali, Mohd Effandi Yusoff, Hanini Ilyana Che Hashim

http://dx.doi.org/10.6007/IJARAFMS/v14-i3/21954

Open access

This study aims to investigate the effect of strategic agility in reducing liquidity risks in Iraqi commercial banks. This study relied on a quantitative design. The primary data was used to measure the dimensions of strategic agility through a questionnaire that was distributed in paper form to 400 employees, including managers, assistants, and workers at other administrative levels. While liquidity risk was measured based on secondary data for the period between 1995 and 2023. The results of this study found that strategic sensitivity has a clear effect in reducing liquidity risk. Also, collective commitment and fluidity of resources had a positive impact on liquidity risk; this shows that banks have the ability to reduce liquidity risks by adopting strategies that suit the economic environment. The limitations included the use of commercial banks only, but future research could include various sectors in other countries and non-financial companies. Practical implications indicate that banks must be more rational and have sufficient justifications when making decisions to choose the strategy that suits sudden changes to avoid liquidity risks. Moreover, commercial banks must apply the dimensions of strategic agility to achieve the desired comprehensive results. The originality of the study lies in giving insight into the dimensions of strategic agility and liquidity risk. Therefore, the results of this study have important implications for investors, managers, and shareholders.

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(Ali et al., 2024)
Ali, M., Yusoff, M. E., & Hashim, H. I. C. (2024). The Impact of Strategic Agility in Reducing Liquidity Risks in Iraqi Commercial Banks. International Journal of Academic Research in Accounting Finance and Management Sciences, 14(3), 16–33.