Iraq Stock Exchange Research Articles

The Value Relevance of Accounting Information in Iraq

The paper tests the value relevance of accounting information extracted from financial statements of 15 Iraqi companies listed on the Iraq Stock Exchange (ISX) for period 2010–2020. The relationships among accounting information (measured as earnings, book value, and cash flows) and company value (measured as stock prices) have been analyzed via descriptive statistics, correlation and regression. It is found that all these relationships are positive and significant in different levels. Compared with book value, earnings have the highest influence on stock price, while cash flows have the lowest influence on stock price. This study participates in the understanding of value relevance of accounting information in ISX as an emerging market and presenting peer insights to enhance the financial reporting standards in this country and in other similar countries in Middle East region.

Effect of integrated financial reporting on firm value with the role of adjusting corporate governance in companies listed on the Iraqi stock exchange

The issue of conflict of interests between shareholders and managers and the mechanism of corporate governance as a solution to reduce agency costs associated with it is one of the important issues that has attracted the attention of many researchers and experts due to its effect on the performance of companies. The purpose of this research is the effect of integrated financial reporting on company value with the role of adjusting corporate governance in companies listed on the Iraqi Stock Exchange. The current research is applied in terms of purpose and descriptive and correlational in nature. The time domain of the research covers a period of years, from the beginning of 2016 to the end of 2022. The studied sample included 10 companies that were selected by systematic elimination method. The results of the test of research hypotheses indicated that corporate governance does not have a modifying role in the effect of integrated financial reporting on the value of the company. It seems that in the Iraqi capital market, integrated financial reporting tools cannot help the shareholders in evaluating the company's value, and other factors affecting the stock price (company's value) are considered by the shareholders.

THE ROLE OF ARTIFICIAL INTELLIGENCE TECHNOLOGIES IN ENHANCING PREDICTIVE ABILITY OF FINANCIAL STATEMENTS: BIG DATA AS AN INTERACTIVE VARIABLE

The research aims to study and analyze the role of adopting artificial intelligence technologies in supporting the predictive ability of financial statements in the context of big data. To achieve the research objective, the researchers designed a questionnaire that included three axes related to the research variables. It was distributed electronically to a sample of accountants, auditors, and investors in the Iraq Stock Exchange. Around 70 responses were collected from the sample members and relied upon in the practical aspect of the research. The SPSS statistical program was used to analyze the results. The research found that artificial intelligence technologies have a statistically significant effect in improving the predictive value of accounting information, and this effect increases in light of big data. Among the most important recommendations of the research is the necessity for financial analysts and investors to use artificial intelligence technologies because it contributes to the accuracy and speed of conducting analyses and comparisons that help improve the predictive value of information, as well as the necessity of employing and adopting big data analytics and capabilities due to the rapid and accurate data processing it provides.

THE MEDIATING ROLE OF EARNINGS MANAGEMENT IN THE RELATIONSHIP BETWEEN THE FIRM LIFE CYCLE AND THE COST OF EQUITY: EVIDENCE FROM BANKS IN IRAQ

The present study seeks to examine the interaction among three separate variables. The initial variable relates to the organization's life cycle and financial attributes. The second variable pertains to the procedures of firm management that influence performance and financial condition, as demonstrated by earnings management. Investors manage the impact of the previous two factors by weighing the risks and potential gains, which the corporation terms as "the cost of equity." We utilized these variables to analyze 15 Iraqi commercial banks that have been listed on the Iraq Stock Exchange for 10 years, equivalent to 150 observations.Our quantitative assessment of the study variables, conducted using models from the relevant literature, has yielded significant findings. We have uncovered a direct correlation between the life cycle and earnings management, indicating a beneficial association. Moreover, we have revealed that each factor exerts a unique and favourable influence on the cost of equity. The correlation between the life cycle and earnings management has led to an increase in the favourable influence of earnings management on the cost of equity. Conversely, the life cycle now has an inverse impact on the cost of equity, with the cost of equity being mainly influenced by the maturity stage. These findings have important implications for stock market traders, as they guide them to direct their investments towards banks that offer higher returns relative to the level of risk, considering the age group and the administration's approach to managing announced profits. This study's implications for stock market traders are significant, as it provides them with valuable insights for making informed investment decisions. It also serves as a guide for future studies in this field.

The Effect of Ownership Structure on the Going Concern Companies Listed in the Iraqi Stock Exchange

The ability of the economic unit to continue is one of the basic assumptions for preparing financial statements. Therefore, users of these statements need to have a clear image of the unit’s performance and financial situation and to ensure that there is no indicator warning of financial distress. For example, there is a conflict of interest between the unit’s shareholders on the one hand and the management on the other hand. Therefore, this research seeks to study the effect of the difference in the nature of the ownership structure on the going concern of economic units. The research is based on the hypothesis that each type of ownership structure has a negative impact on the going concern unit. The research selected five economic units listed on the Iraqi Stock Exchange from the service sector as a sample for the research. Data is collected for the period extending from 2011-2021. The research used the survey method to measure the ownership structure and applied a Kida Model to measure going concern. The most significant results of the research are a negative effect of institutional ownership, concentrated ownership, and management ownership on the going concern of the unit, In contrast, the effect is positive for both government ownership and family ownership, and foreign ownership has no effect. Paper type: Research paper

Optimising Stock Market Indices for Emerging Economies: An Empirical Study of the Iraqi Stock Exchange

This research explores the efficiency of different ways to construct a stock market index in the Iraqi Stock Exchange (ISX) context, an emerging market with unique traits. Five methods are considered: Price-Weighted Index (PWI), Equal-Weighted Index (EWI), Geometric Mean Index (GMI), Risk-Weighted Index (RWI) and Volatility-Weighted Index (VWI). The ISX60 index is used as a benchmark against their performance. The study employs 57 stocks listed on the ISX from August 2022 to August 2024, covering two years. We examine each method’s stability, performance, and representativeness through graphical analysis and comparative evaluation when building an index. The results indicate that broader indices with more components show higher stability under all constructions. GMI works well in tracking general trends across the market, while RWI and VWI appear effective at controlling risk and reducing exposure to volatile assets, respectively. It also underscores diversification as critical for constructing indices and tradeoffs between representation versus stability in emerging markets. Such insights enhance understanding of how indices can be created in developing financial systems and have practical implications for investors, policymakers, and financial analysts operating within Iraqi or similar emerging economy settings.

The Effect of Ownership Structure on the Going Concern Companies Listed in the Iraqi Stock Exchange

The ability of the economic unit to continue is one of the basic assumptions for preparing financial statements. Therefore, users of these statements need to have a clear image of the unit’s performance and financial situation and to ensure that there is no indicator warning of financial distress. For example, there is a conflict of interest between the unit’s shareholders on the one hand and the management on the other hand. Therefore, this research seeks to study the effect of the difference in the nature of the ownership structure on the going concern of economic units. The research is based on the hypothesis that each type of ownership structure has a negative impact on the going concern unit. The research selected five economic units listed on the Iraqi Stock Exchange from the service sector as a sample for the research. Data is collected for the period extending from 2011-2021. The research used the survey method to measure the ownership structure and applied a Kida Model to measure going concern. The most significant results of the research are a negative effect of institutional ownership, concentrated ownership, and management ownership on the going concern of the unit, In contrast, the effect is positive for both government ownership and family ownership, and foreign ownership has no effect. Paper type: Research paper

The Effect of Corporate Social Responsibility on Tax Avoidance with the Moderating Role of Corporate Governance

Objective: This study explores the impact of corporate social responsibility on tax avoidance with the moderating role of corporate governance in Iraq. Research Method: The researcher selected a sample of companies listed on the Iraqi Stock Exchange, numbering (33). Data was taken from 2012 to 2022, and the data was analyzed using the Eviews 9 program. Findings: Iraqi companies suffer from slight levels of tax avoidance by adopting social responsibility practices and disclosing corporate governance. Companies' commitment to corporate social responsibility would add value to the company. Commitment to corporate social responsibility leads to reducing tax avoidance. Conclusion: We note from the study that there is a weakness in applying social responsibility accounting. Corporate governance and the application of its principles impact paying taxes and preventing avoidance and evasion of paying them. CSR and taxation have the same goal of improving the well-being of society The results of this study indicate that the higher the level of CSR activities, the higher the company's responsibility for its tax obligations. Corporate social responsibility is the taking of responsibility by a company for its actions as well as encouraging the creation of a positive impact through its activities on the environment, customers, employees, communities, stakeholders and all members of the public who can be considered stakeholders.

THE ELECTRONIC ACCOUNTING INFORMATION SYSTEM AND ITS ROLE IN ENHANCING FINANCIAL INFORMATION SECURITY AND ITS EFFECTIVENESS IN THE QUALITY OF FINANCIAL REPORTS (AN APPLIED STUDY ON A SAMPLE OF IRAQI BANKS)

Objective: The study aimed to identify the electronic accounting information system and its role in enhancing financial information security and its effectiveness in the quality of financial reports in Iraqi banks. Theoretical Framework: In this topic, the main concepts and theories that support the research are presented. [The basic concepts of electronic accounting information system, financial information security, and financial reporting quality] are highlighted, providing a solid foundation for understanding the context of the investigation. Method: This study relied on the descriptive analytical approach in order to formulate the problem and clarify the importance of the study and its objectives, as well as to develop a set of hypotheses to verify their validity. The study community represented all banks listed in the Iraq Stock Exchange, while the sample was summarized as (10) banks. The researcher surveyed the opinions of all employees in private banks in Baghdad Governorate. The study community may consist of 1400 employees from all different administrative levels. The study sample was selected at a rate of 30% of the study community, as the sample size reached (400) individuals. The study community was divided into different classes according to the nature of the work of those banks. Results and Discussion: The study concluded that the banks in the study sample are exposed to various risks due to the use of electronic systems, in addition to the reasons for the existence of links and effects between the study variables. Research Implications: The necessity of increasing attention to the presence of a competent and scientifically and practically qualified human element in banks because it makes the electronic accounting information system worthy of improving the security of financial information through the effectiveness of the quality of financial reports. Originality/Value: Despite the advantages of systems, whether from outside or inside the organization, there are a set of risks surrounding the use of these systems, which come from various sources, including (human resources risks, hardware and equipment risks, software risks). (Risks, database risks, software risks, network risks), each risk has a different impact and may cause huge financial losses to the organization, because the occurrence of these risks will lead to direct damage to information (accounting) and accounting quality. The information owned by the organization.

Measuring and analyzing the impact of portfolio investment on the trading volume index of the Iraq Stock Exchange for the period 2012-2022

The study aims to measure and analyze the role of portfolio investment in the trading volume index of the Iraqi securities market. The descriptive and analytical approach and the standard economics approach were used in building the model based on the EViews 13 program, as well as the use of the self-degradation model of distributed time gaps (ARDL). The study concluded that the statistically significant impact of portfolio investment on Iraq's short-term and long-term stock exchange volume index was demonstrated the study found that portfolio foreign investment is an important element of the economy. However, the Iraqi economy is an environment that is not attractive to investment because of the conditions of security and economic instability, which adversely affects foreign investors' willingness to invest and trade in the market. This is illustrated by the indicators during the course of the study, whether as regards the volume of non-Iraqis' trading or net portfolio investment and its impact on the volume index on the Iraq stock market. The study recommended the granting of many advantages and tax incentives to attract foreign investors to financial markets because of the great importance of portfolio investment in development and the development of the national economy as well as providing the right investment climate and working to diversify and develop new types of securities

The Impact of Corporate Social Responsibility on Tax Avoidance in the Listed Companies on the Iraqi Stock Exchange

This study explores the impact of corporate social responsibility on tax avoidance in the Iraqi listed companies on the Iraqi stock exchange. The sample of companies include companies which are listed on the Iraqi Stock Exchange, numbering (33). Data was taken for the years from 2016 to 2021, and the data was analyzed using multiple regression and panel data analysis.The results indicated (corporate social responsibility) that there is a negative relationship between corporate social responsibility and tax avoidness and Iraqi companies suffer from slight levels of tax avoidance through adopting social responsibility practices. We note from the study that there is a weakness in the application of social responsibility accounting. Commitment to corporate social responsibility leads to reduced tax avoidance. Among the conclusions is the clear weakness in the internal control systems of companies in terms of the extent of commitment to social responsibility and attempts to benefit from tax savings to achieve personal gains. The research came out with a set of recommendations, the most prominent of which is the need to strengthen the supervisory role to reduce tax evasion operations, as using social work as a means of tax evasion harms government revenues in the state’s general budget.

The Impact of Sustainability Reporting on the Earnings Response Coefficient of the Iraqi-Listed Companies

This study examines the impact of sustainability reporting on the Earnings Response Coefficient (ERC) of companies listed on the Iraq Stock Exchange. The ERC reflects the effect of unexpected earnings on stock returns, and sustainability reporting is expected to enhance company legitimacy and trust, potentially increasing the ERC. Despite the growing importance of sustainability practices, there is limited research on their influence on the ERC in emerging markets like Iraq. Using data from 33 firms from 2012-2022 and employing multiple linear regression with panel data analysis, the results indicate that Iraqi companies experience only slight improvements in ERC through sustainability reporting. These findings suggest that sustainability reporting can enhance a company's reputation and legitimacy, contributing to increased ERC. The study highlights the need for policymakers to strengthen sustainability reporting requirements and provides insights for investors seeking to optimize portfolios based on corporate sustainability compliance.

Effectiveness of banking financial stability in light of the indicators of Central Bank of Iraq (MACHINE LEARNING) - an analytical study of a sample of banks listed on the Iraq Stock Exchange

Effectiveness of banking financial stability in light of the indicators of Central Bank of Iraq (MACHINE LEARNING) - an analytical study of a sample of banks listed on the Iraq Stock Exchange

The Possibility of Applying the Profitability Multiplier Model and the Lerner and Carlton Model to Measure the Fair Value of Private Commercial Bank Shares Listed on the Iraqi Stock Exchange for the Period (2014-2019)

The Possibility of Applying the Profitability Multiplier Model and the Lerner and Carlton Model to Measure the Fair Value of Private Commercial Bank Shares Listed on the Iraqi Stock Exchange for the Period (2014-2019)

The Role of Corporate Governance in Improving the Quality of Financial Reports An Empirical Study on a Group of Commercial Banks Listed on the Iraq Stock Exchange

The Role of Corporate Governance in Improving the Quality of Financial Reports An Empirical Study on a Group of Commercial Banks Listed on the Iraq Stock Exchange

The Role of Profits Management Practices on Financial Performance in Institutions

The research aimed to determine whether practicing the phenomenon of profits management affects the capital structure of the companies in the research sample. The research population consisted of all companies listed on the Iraq Stock Exchange for the period (2013 - 2022). The research sample included (26) companies that met the conditions. Companies. Among the most important results: (53%) of the companies in the research sample practiced profits management throughout the research period (2013 - 2022), while the remaining companies practiced it for varying periods. It was found that half of the companies in the research sample had lower costs than the general average weighted cost of the capital structure, and recorded the highest costs in the agricultural sector, and the lowest costs in the industrial sector. Among the most important suggestions: Corporate management should be aware of the risks that may result when practicing profits management on the performance and market value of the company.

The importance of financial ratios in determining profit distribution policies for a sample of Iraqi banks

This study aims primarily to demonstrate the importance of four types of financial ratios, namely profitability ratios, turnover rates, activity cost ratios, and financial leverage ratios, as well as to explain their impact on cash dividend distribution policies for a sample of Iraqi banks traded on the Iraqi Stock Exchange for the period (2010 - 2017). The number of banks was chosen from the Iraq Stock Exchange (13 banks), and the data for the aforementioned time period was taken according to the bulletins and financial statements issued by the official website of the market. After conducting statistical analysis of the data using the statistical package program (SPSS), where the sample size used was (104) observations, and the number of independent variables was (9), which represent the financial ratios, it was found that there is a significant impact of these financial ratios on determining profit distribution policies, and the study recommended to the specialists In the financial field, using these ratios and focusing on them in the financial analysis aspect.

Impact of green financial funding on improving the financial efficiency of a sample of companies listed on the Iraq stock exchange

The aim of this research is to identify the impact of green financing on financial efficiency by highlighting the importance of financing green activities in supporting the financial efficiency of banks. In this research, the authors adopted the descriptive analytical method and the statistical method, where (75) questionnaires were distributed to a research sample consisting of three banks: Al-Ahli Bank of Iraq, Middle East Bank, and North Bank. The questionnaires were transcribed and analyzed using Microsoft Excel. The research concluded that green financing contributes to financing sustainable activities and protecting the environment. The research also found that the interest in green financing enhances the efficiency of bank management in facing risks, while green financing has a weak impact on the performance and financial efficiency of banks. The research recommends that banks focus on sustainability and renewable energy sectors, increase investors' and customers' awareness of green activities, and emphasize the importance of green financing in achieving sustainable development.

The impact of earnings management on financial performance considering the moderating role of intellectual capital and corporate social responsibility of companies listed on the Iraq Stock Exchange.

The impact of earnings management on financial performance considering the moderating role of intellectual capital and corporate social responsibility of companies listed on the Iraq Stock Exchange.

The impact of earnings management on financial performance considering the moderating role of intellectual capital and corporate social responsibility of companies listed on the Iraq Stock Exchange.

The impact of earnings management on financial performance considering the moderating role of intellectual capital and corporate social responsibility of companies listed on the Iraq Stock Exchange.