Abstarct: The privatization of state-owned enterprises in Iraq, as a central strategy for post-war and post-sanctions economic reconstruction, has long been accompanied by a fundamental question: have these transfers led to a lasting and significant improvement in the financial performance of firms, or have they merely resulted in a cosmetic change in ownership tixtles? This study aimed to design and test a structural model for analyzing the impact of privatization on the financial performance of companies owned by Iraqi provinces, taking into account the contextual factors and local conditions of each province. A sequential exploratory mixed-methods design was employed in two stages. In the qualitative stage, using grounded theory (Strauss and Corbin's systematic approach) and semi-structured interviews with 21 experts from nine Iraqi provinces, an indigenous paradigmatic model comprising 18 main categories was developed, encompassing the core phenomenon, causal conditions, contextual conditions, intervening conditions, strategies, and consequences. In the quantitative stage, the extracted model was empirically tested using structural equation modeling (Partial Least Squares approach) baxsed on data collected from 247 senior managers and financial experts of privatized companies, along with objective financial ratios extracted from audited financial statements. The findings revealed that the core phenomenon of ownership structure change and managerial autonomy occurs within the context of causal conditions (competitive market environment and access to technology), contextual conditions (provincial development level and infrastructure quality), and intervening conditions (quality of the legal frxamework, administrative integrity, and political-security stability). Through five managerial strategies (financial restructuring, working capital management, financial discipline, professional management capacity, and human resource management), this phenomenon affects four dimensions of financial performance: profitability, liquidity, operational efficiency, and capital structure. The structural model demonstrated satisfactory fit (GoF=0.568, SRMR=0.062) and explained 64.7 percent of the variance in financial performance. Professional management capacity showed the strongest effect on financial performance with a path coefficient of 0.472. The most significant finding was the revelation of the moderating role of provincial development level: the impact of managerial strategies on financial performance was significantly stronger in developed provinces compared to less developed ones (p<0.05). These results indicate that the success of privatization in Iraq requires not only a change in ownership, but also the genuine establishment of managerial autonomy, a minimum level of institutional quality, and context-sensitive groundwork tailored to each province's level of development.