Operating Efficiency and Its Role in Enhancing Financial Well-being: An applied study on private commercial banks listed on the Iraq Stock Exchange for the period (2005–2024)

This study aims to analyze the role of operational efficiency in enhancing the financial well-being of a sample of seven Iraqi commercial banks for the period 2005–2024. The sample consisted of Baghdad Bank, the National Bank of Iraq, Middle East Bank, Credit Bank, Iraqi Investment Bank, Gulf Commercial Bank, and Mosul Bank. Operational efficiency was measured as the ratio of operating expenses to operating revenues, while financial well-being was measured using the Sherrod model. The study relied on data from the annual reports of banks listed on the Iraq Stock Exchange, employing unit root tests on panel data and pooled regression models, as well as fixed and random effects, using EViews V.12 software. The study concluded that operational efficiency has a significant impact on financial well-being, as higher operating expenses relative to revenues lead to a decline in the banks' financial well-being. The study recommends rationalizing operating expenses and diversifying revenue sources to enhance financial well-being.