Financial derivatives and their role in financial decision : an analytical study of the views of managers in a sample of private sector banks in the city of Erbil

Abstract EN

The purpose: The research aims to know the role of financial derivatives of all kinds (options contracts, futures contracts, and swap contracts) in making financial decisions of all kinds (investment decisions, financing decisions and profit distribution decisions).

The research problem was defined by asking questions centered on the nature of the relationship, influence and clustering between the research variables.

A hypothesis scheme was designed for the research, and the main and subsidiary hypotheses emerged from it.

The research followed a (descriptive - analytical) approach to achieve the research objectives.

The research used the questionnaire form as a means to obtain the data.

The research sample consists of managers in private banks in the city of Erbil, whose number is (127) managers in (46) banks in the field of research.

The questionnaire form was distributed to (127) managers, and (110) valid forms were retrieved for analysis.

In order to verify the validity of the hypotheses, it was subjected to multiple tests using the SPSS-V.22 statistical program.

The research reached several conclusions, the most important of which is the existence of a positive and very good level of moral relationship between financial derivatives at the macro and partial level, as the stronger relationship between swap contracts and financial decisions.

This indicates that the more private banks researched relied on financial derivatives, this led to improved levels of financial decisions.

And among the most important suggestions is the necessity for the management of private banks to invent other financial tools that support their financial decision-making, and the research suggests the necessity to maintain the management of private banks on their financial position without collapsing and confusion.