| Summary: | The study sought to examine the impact of financial structure on the market value added of Iraqi tourism companies. The study adopted a quantitative approach by analyzing the financial data of a sample of Iraqi tourism companies for the period from 2004 to 2018. To measure the financial structure, three variables were used: Leverage Ratio, Equity to Total Assets Ratio and Short - Term Financing to Total Equity Ratio. The paper found that tourism companies differ in their reliance on debt in relation to property rights. It also found that there is a limited dependence of most of the study sample companies on fixed-cost loans in finance, in particular longterm loans. In addition, any improvement in the market value of the entity in relation to it carrying value will lead to an increase in the market value added. This study provides a better understanding of the relationship between financial structure in tourism companies and their market value added for researchers, practitioners and managers in the sector. Moreover, the results of this study are a working guide for financial managers in tourism companies and for the general investors in the tourism sector in determining the structure of financing or when making decisions to borrow or invest, because such decisions will directly affect the market value added of the company and the price of its shares in the financial markets. This study is one of the first studies that discuss the relationship of financial structure to market value added in the tourism sector in Iraq and is thus the starting point in exploring the determinants of financial structure in this important sector.
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