Iraq Stock Exchange Research Articles

The Extent of the Efficiency of Investment Decisions in Iraqi Companies Listed on the Iraqi Stock Exchange

The research aims to measure the impact of the efficiency of investment decisions in the Iraqi companies listed in the Iraqi Stock Exchange, and this goal is achieved by identifying the concept of the efficiency of investment decisions, by relying on the data of the annual financial reports of a sample of Iraqi companies listed in the Iraqi Stock Exchange, which numbered (27 companies represented by (15) companies from the banking sector, (8) companies from the industrial sector and (4) companies from the insurance sector for the period from (2011-2020). For the purpose of measuring the efficiency of investment decisions, a model (Mcnichols & Stubben, 2008) was used, and the research reached several results, the most important of which is that there is an efficiency of investment decisions in Iraqi companies listed in the Iraqi Stock Exchange. The most important thing recommended by the researcher is the necessity of focusing and paying attention to the factors that result in the efficiency of investment decisions, such as the quality of accounting information and reliance on the International Financial Reporting Standards (IFRS), as well as the study and analysis of financial data for making investment decisions in a detailed manner and following the methods of evaluating investment projects (economic feasibility study).) to prevent making wrong (sub-optimal) investment decisions that result in huge irreversible losses.

CLOSING PRICE PREDICTION OF STOCK LISTED ON THE IRAQ STOCK EXCHANGE USING ANN-LSTM

Financial markets are highly reactive to events and situations, as seen by the very volatile movement of stock values. As a result, investors are having difficulties guessing prices and making investment decisions, especially when statistical techniques have failed to model historical prices. This paper aims to propose an RNNs-based predictive model using the LSTM model for predicting the closing price of four stocks listed on the Iraq Stock Exchange (ISX). The data used are historical closing prices provided by ISX for the period from 2/1/2019 to 24/12/2020. Several attempts were conducted to improve model training and minimize the prediction error, as models were evaluated using MSE, RMSE, and R2. The models performed with high accuracy in predicting closing price movement, despite the Intense volatility of time series. The empirical study concluded the possibility of relying on the RNN-LSTM model in predicting close prices at the ISX as well as decisions making upon.
 Keywords: Stock, LSTM, Prediction, ANN, RNN, ISX

Credit Risk and its Impact on Profit Quality (An Applied Study in a Sample of Commercial Banks Registered in the Iraq Stock Exchange 2011-2020)

This research aims to present the analysis and measurement of the impact of credit risks on the quality of profits for commercial banks. This research was applied to a sample of commercial banks listed in the Iraq Stock Exchange that were selected according to the date of their establishment, namely, the Commercial Bank of Iraq (BCOI), Bank of Baghdad (BBOB), for the period 2011-2020, and the descriptive analytical approach was used in describing, analyzing and measuring all the variables from Through the actual financial data available from the research sample banks, with the aim of evaluating and measuring the independent variable (credit risk) and the dependent variable (profit quality), and analyzing and interpreting the relationship and the effect between them. The analysis of variance was used using the program (spss rv20) to measure the correlation and effect between the results of the study. The credit risk was used in the research and the quality of profits, and this research reached a set of conclusions within the framework of its main and subsidiary hypotheses, which can be summarized as follows, it appeared that there was a correlation with a significant impact and statistical significance between credit risk and the quality of profits in commercial banks, the research sample. And its benefits are on their due dates, so banks should seek the assistance of experts who have practical competence and benefit from their expertise and advice regarding credit risks in particular, bearing in mind that there are other determinants that commercial banks must take caution and try to monitor and control them constantly.

The impact of environmental costs dimensions on the financial performance of Iraqi industrial companies with the role of environmental disclosure as a mediator

This study aims to examine the impact of environmental costs dimensions on the financial performance of Iraqi industrial companies with the role of environmental disclosure as a mediator. The data was collected from annual reports of 25 selected companies of the Iraqi stock exchange and oil sector from 2014 to 2018. The results show that the average percentage of environmental disclosure in the industrial companies selected in this study was 20.0 % and the mean found was 20.2 %. The results also showed that environmental costs (contingent costs and external social costs) positively influence financial performance, while contingent costs, social costs, hidden costs, and Image & relationship costs show a positive influence on environmental disclosure. The findings revealed that environmental disclosure was positively significant in affecting financial performance. It was found that environmental disclosure fully mediated the relationship between environmental costs (hidden costs and Image & relationship costs) and financial performance. Environmental disclosure partially mediated the relationship between environmental costs (Contingent costs, and social costs) and financial performance. There is no mediation of environmental disclosure for the impact of Conventional costs on financial performance. It was also found that environmental disclosure mediated the impact of environmental costs (Conventional costs, Image & relationship costs, and External social costs) on financial performance. This indicates advantages for companies that produce less moderate environmental disclosure and enables them to gain investors’ confidence. This study's implications provide insights into the implementation of the measurement of environmental costs and environmental disclosure in Iraq.

The Impact of Profitability on Earnings Management for Commercial Banks Listed on the Iraq Stock Exchange

The study aims to analyze and measure the impact of profitability on the profit management of banks listed in the Iraq Stock Exchange. The study relied on a set of financial ratios for the profitability index and the loan-loss allocation model (LLP) to measure profits management, in addition to a number of standard models and statistical analysis methods compatible with the nature of the study to estimate regression equations. Where the research community represents the commercial banks listed in the Iraq Stock Exchange, and the research sample was represented by (10) banks listed in the Iraqi Stock Exchange, and for a period of (2004-2020). The study concluded that there is a statistically significant effect of the independent variable profitability in the management of profits for commercial banks. Based on the results, a series of recommendations are made, the most important of which is the necessity of activating the role of the Securities Commission in controlling banks, and taking appropriate measures against banks that apply profit management, as this leads to misleading the users of financial statements.

Accounting Quality and Audit Attributes on the Stock Price Crashes in an Emerging Market

This study addresses the relationship between accounting quality and audit attributes (i.e., audit quality, auditor industry specialization, audit concentration, and audit fees) with companies’ SPCRs listed on the Iraqi Stock Exchange. A multivariate regression model was used to test the hypotheses. The research hypotheses were tested using a sample of 210 observations of the listed Iraqi firms from 2013 to 2018 and a multiple regression model based on the random-effects model’s panel data technique. The findings indicate a negative and significant relationship between the accounting quality, audit, auditor industry specialization and SPCRs. Results also conveyed a meaningful and positive association between stock price crash risk (SPCR) and audit fees. The results did not confirm the relationship between corporate governance and audit concentration with SPCR. The primary research model was tested with additional methods (t + 1, fixed effects, ordinary least squares). Since this is the first study addressing this issue in the emerging markets, it provides users, analysts, and legal entities with helpful information about audit attributes that significantly affect SPCR. These results also contribute to developing science and knowledge in this field and fill the literature gap.

Measuring and Analyzing Cash Flow Indicators and their Impact on the Financial Decisions of the industrial Sector in Iraq: A Study of a Sample of Companies Listed on the Iraq Stock Exchange

The aim of the research is to indicate the importance of preparing a list of cash flows and diagnosing its effects on the financial decisions of the industrial sector, as well as shedding light on the importance of using the list of cash flows attributed to some items of the financial statements instead of relying on the absolute number of cash flows. The study was based on a set of hypotheses, the most important of which is there Significant and statistically significant effect of cash flow indicators in financial decisions, and the study sample was represented by a group of companies listed in the Iraq Stock Exchange, represented by (5) companies affiliated with different sectors (industrial,) for the period (2011-2020) and the data of the studied companies were obtained from The official bulletins of the Iraq Stock Exchange, as well as the bulletins of the Central Bank of Iraq. And the use of statistical programs to reach the results, where the statistical program Excel was used to process and formulate raw data in the form of financial ratios, and the statistical program 10Eviews was also used in the practical side and hypothesis testing. The study found the negative impact of the cash flow indicators and the inflation rate on the financing decision and the positive impact on the investment decision in the industrial sector.

IFRS adoption, cost of equity and firm value: evidence from Iraq

Purpose: The aim of this study is to examine the effect of adoption of IFRS on the Iraqi environment by studying the relationship between the adoption of international financial reporting standards and the cost of equity and the effect of the cost of equity on the value of the company. Theoretical framework: The international financial reporting standards (IFRS) are becoming special driver for the convergence of management and financial accounting and as the leading principles for over 120 countries in the world including those that voluntarily adopted the standards. Design/methodology/approach: The population of the study comprises 17 commercial companies listed in the Iraqi Stock Exchange for the periods of 2011-2013 and 2016-2018 with the exception of Islamic companies due to the difference in the privacy of the applicable regulations Findings: The results from the data collected through questionnaire survey showed the distinctive effects of financial and management accounting standards before and after the adoption of IFRS. Therefore, there are inconsistencies in the results of the value of the companies between the samples for the periods before and after the application of international financial reporting standards. Research, Practical & Social implications: The study examined the differences in the outcomes of the years when IFRS was yet to be adopted when the standards are adopted by considering the control variables such as age of the companies, size of the companies and leverages. Originality/value: the value of the study's originality by measuring adopting IFRS for the first time in Iraqi Banking for the periods of 2011-2013 and 2016-2018 with the exception of Islamic companies due to the difference in the privacy of the applicable regulations.

The role of GRI standards in reporting the dimensions of sustainable development - An applied study in a number of local companies on the Iraq Stock Exchange

The current research aims to shed light on the Global Reporting Initiative (GRI), which helps to report financial and non-financial information by economic units in general and listed on the Iraq Stock Exchange in particular. The research was based on a main premise that apply the criteria of the Global Reporting Initiative (GRI) would provide useful information to users to help them make appropriate decisions. To achieve the goal of the research, the descriptive analysis method was used, and quantitative analysis was used. At the level of the descriptive analysis method, a desk survey was conducted. As for the quantitative analysis, it relied on applied data through a questionnaire form (Questioners) as a research tool, and the Statistical Package for Social Sciences (spss) was used to analyze the research data and to reach the results. The research got a set of conclusions, the most important of which is that the accounting profession seeks to provide all information that is useful to users in the process of making appropriate decisions. Therefore the application of the Global Reporting Initiative would improve the quality of the information supplied to users as well as economic help units to Think about its strategy, manage risks, and provide a comprehensive picture of the performance of economic units Yeh. Based on the conclusions, a set of recommendations were presented, the most important of which was the need to prepare requirements and qualifications that help implement the Global Reporting Initiative by units to ensure the provision of information that is useful to users in the decision-making process. He urged economic units to submit reports through the application of the Global Reporting Initiative to improve the quality of information provided to users on the one hand and the possibility of improving the unit's performance on the other hand

The impact of ownership concentration and board of directors mechanisms on earnings management practices: an applied study on a sample of private Iraqi banks listed on the Iraqi Stock Exchange.

يهدف البحث إلى قياس اثر آليتي تركز الملكية ومجلس الإدارة على إدارة الأرباح تمثلت عينة البحث ب16 مصرف من المصارف العراقية المدرجة في سوق العراق للأوراق المالية للفترة من ( 2010-2019) وقد توصل البحث إلى أن آليتي تركز الملكية ومجلس الإدارة ذات تأثير في تخفيض ممارسات إدارة الأرباح ,ويوصي البحث بإصدار قواعد او دليل بتطبيق قانون حوكمة الشركات في سوق العراق للأوراق المالية ولا سيما أن البحث اثبتت من ممارسات المصارف العراقية لإدارة الأرباح .

The Role Of Using International Banking Standards In Improving Banking Performance An Applied Research On A Sample Of Commercial Banks Listed In The Iraqi Stock Exchange

The Role Of Using International Banking Standards In Improving Banking Performance An Applied Research On A Sample Of Commercial Banks Listed In The Iraqi Stock Exchange

Iraqi Stock Exchange Reactions to the Oil price, Covid-19 Aftermath, and the Saudi Stock Exchange Movements pre-during Vaccination Program

The study attempts to understand the influence of Brent oil price per barrel (BOP), the general index of 30 stocks in Saudi Arabia (MSCI30), the number of Covid-19 new infected cases (NIC_19), ounce gold price (OGP), and US dollar base to Iraqi Dinar exchange rate (USD_IQD) upon Iraq stock exchange (ISX60) using the daily period (25 February 2020 to 15 July 2021) divided into three subperiod; whole period pre-during covid-19, pre-Covid-19 and during Covid-19 vaccination process. The results indicate the long-run relationship between the regressors and the Iraq stock exchange in the subperiod before Covid-19 and during the Covid-19 vaccination process but did not appear for the whole period pre-during the covid-19 vaccination process. The results reveal a positive influence of (MSCI30 and USD_IQD) on ISX60 in the long term for a period before the Covid-19 vaccination process. And, the results indicate a negative influence of (BOP and OGP) respectively on (ISX60) in the long term, and (MSCI30) positively leads ISX60 in the long term during the Covid-19 vaccination process. The results are crucial to governments, investors, and policymakers because the Iraqi economic movements and stock exchange development need more highlight in the further studies, especially the vaccine discovery consequences.

Evaluation of Organizational Performance based on Accounting Information Security

A study was conducted to examine the impact of the security of accounting information systems on the quality and management of information to evaluate organizational performance. Companies listed on the Iraq Stock Exchange were asked to complete a questionnaire. Sampling was the primary method of random sampling. A total of 336 survey questionnaires were distributed, but 316 correct answers were used in the review process, resulting in a 0.94 percent response rate. To verify the hypotheses, a general deductive and analytical description was derived using SPSS version 26. According to our empirical research, four critical situations exist in four key areas. First, information management (IM) and information quality (IQ) directly impact an organization's performance. Second, SMEs respond to the market's needs without a methodology or system. Using information effectively increases their competitive capability (financial performance, market share, innovation, customer satisfaction). Therefore, crucial to create a culture of efficient data, information management, and quality. A business's survival could also be adversely affected by rejecting innovation hypotheses in the medium term. Productivity is directly impacted by information management (IM) and quality of information (IQ). 36.5% of the results are explained by correlation. Hence, information can be viewed from many different perspectives: as the organization's final product, as a product created and used within the organization, as a corporate information product, or as a product originating from the environment.

Measuring the Impact of Liquidity, Profitability and Volume on Financial Performance: An Analytical Study of a Sample of Industrial Companies Listed in the Iraq Stock Exchange

The study aimed to identify the impact of each company's size, profitability and liquidity on the financial performance practices in the Iraqi industrial companies environment. The research sample included the financial reports of 23 companies registered in the Iraq Stock Exchange for the period from 2010 to 2020, and the impact of these variables was measured according to regression using the weighted least squares method. The study concluded that most of the sample companies practice the profit management process, albeit at a low level. Significant effect of company size on the financial performance of the research sample companies. Where the results of the analysis showed the existence of a significant effect with a significant statistical significance represented by a coefficient of determination of 41% for each of the volume, profitability and liquidity in the financial performance, and the analysis of variance proved the validity of this effect. The study recommended that companies should work on developing the economic infrastructure through energy use The unemployed, and working to increase spending in each of the research and development fields in order to join international companies.

Application of Attribute-Based Costing Approach (ABC11) in Companies listed on the Iraq Stock Exchange: A field study

Most entities in developed countries tend to use the attribute-based costing approach instead of using the traditional systems applied, because of the advantages of this approach in use and accuracy in the results. Therefore, this research came to identify the extent to which the attribute-based costing approach (ABC11) can be applied in Iraqi commercial banks. This research was divided into two sections. Section One: It addresses the definition of attribute-based costing approach and the steps of applying this approach, importance, advantages and criticisms of this approach and finally, the conditions of applying this approach. Section Two: The field research represented by the questionnaire directed to the Iraqi commercial banks to determine the extent to which this approach can be applied, the difficulties faced by the banks in applying this approach, the possible benefits upon application. Finally, the results reached by the researcher through this research and recommendations, the most important of which is the necessity of helping auditors being acquainted with the importance and benefits of applying the attribute-based costing approach in order to help the entities’ management being acquainted with the importance of applying this approach. The researcher also recommends conducting an applied study through the actual comparison between the results according to the traditional systems and according to the attribute method to verify the accuracy of determining the cost and the benefits of the entrance and its advantages.

Testing the Relationship Between Financial Fragility and Financial Recovery Using Causality (Granger): An Analytical Study of a Sample of Commercial Banks Listed in the Iraq Stock Exchange

The research aims to measure and analyze the financial fragility that Iraqi commercial banks may suffer from, as well as build a framework of knowledge on the issues of financial fragility and financial recovery by addressing the researchers' most important ideas for them and identifying their most prominent indicators. The research attempts to measure and analyze the causal relationship of (Granger) between financial fragility and financial recovery, with determining the direction of this relationship. The research used the (Z-score) model and financial recovery indicators (cash balance ratio, rate of return on deposits, appropriateness of capital for loans and advances, appropriate Capital for total deposits) and (Granger) causality test to prove its hypotheses. The sample included (10) Iraqi commercial banks listed on the Iraqi Stock Exchange, and the research covered (10) years from 2011 to 2020; and in order to achieve the objectives of the research and prove its hypotheses, it has relied on the descriptive and analytical approach, and in conclusion, the research concluded with a number of conclusions and recommendations. Among the most important conclusions reached by the research, the indicators of financial fragility in the Iraqi commercial banks vary in the research sample, and this means that each bank has financial fragility that depends on the indicators of financial fragility that were measured and there is a relationship One-way causation between financial fragility and indicators of financial recovery for Iraqi commercial banks, the research sample, meaning that any change in the cash balance ratio (Y1) causes a change in financial fragility (X), and any change in fragility Financial (X) causes a change in the rate of return on deposits (Y2), as well as any change in financial vulnerability (X) causes a change in the suitability of capital for loans and advances (Y3), and any change in the suitability of capital for total deposits (Y4) causes A change in financial fragility (X), and one of the most important recommendations made by the research is the need for banks in general and Iraqi commercial banks to sample the research in particular to rely on unified indicators to measure levels of financial fragility in proportion to the state’s environment, because these indicators will give an impression to both Lenders and borrowers about the strength and stability of the financial position, the ability to repay debts and loans, and to stand up to financial crises if they occur.

The Effect of the Credit Shock on the Capital Adequacy of Iraqi Private Banks

The research aims to measure the credit shock and to know the extent to which Iraqi private banks are exposed to credit shocks, and to determine their impact on banking financial soundness represented by the capital adequacy index and determine the causal relationship between the credit shock and capital adequacy, and to estimate the impact of the credit shock on capital adequacy. Statistician (10EViews V.). The study community was represented by the Iraqi private banks Selection sample made of (10) Private banks listed on the Iraq Stock Exchange. This is for its contribution to the development economic, I tested the hypotheses of the study using the descriptive analytical method based on the annual reports of the study sample for the period (2012-2020). The short-term relationship showed that (36%) of the short-term errors can be corrected in the unit time represented by the year, to return to the equilibrium position in the long term and that the effect in the short term does not persist in the long term. Seven tests confirm the existence of a long-term co-integration relationship between the study variables at the level of significance (5%) for the individual segment and the general trend, which is the presence of co-integration.

The role of the quality of banking governance on the disclosure of the management comments report in accordance with international and local requirements

The study aims to know the role in the application and commitment of some international indicators of institutional governance and mechanisms issued by the Central Bank of Iraq to enhance and increase disclosure in the report of management comments issued by economic units. To achieve the purpose of the study, a number of Iraqi banks listed in the Iraq Stock Exchange were selected (Al Ahli Bank of Iraq, Iraqi Trade Bank, Gulf Commercial Bank, Middle East Investment Bank, Mosul Bank for Development and Investment, Al-Mansour Bank for Investment, Baghdad's Al-Ahli Bank, Sumer Commercial Bank, Trans Iraq Investment Bank) as a research sample. The study relied on the analytical descriptive approach and designed a checklist to collect data. The data was obtained from the annual reports of the banks and for the period from (2016) to (2019), which are available in the Iraqi Stock Exchange and the official websites of the banks of the study sample. It also relied on the Corporate Governance Guide issued by the Central Bank of Iraq for the year 2018, in addition to the (GMI) index issued by the American company (Governance Metrics International), in addition to its reliance on the Administrative Comments Index (Ma.Co.I) issued by the International Accounting Standards Board (IASB) year 2020. The study reached a number of conclusions, including the existence of a discrepancy in the commitment of the study sample banks to the mechanisms of quality governance. In addition to the discrepancy in the disclosure of the information included in the reports of the management comments by the banks of the research sample.

Analysis of the variance of the value of the enterprise according to the effect of managing both accounts receivable and inventory

The goal of the study is to determine the pattern of relationship between two major aspects of working capital, namely accounts receivable and inventory management, and their impact on maximizing the enterprise's value. The two independent variables in the research are represented by the management of each accounts receivable, inventory and the responsive variable is the value of the facility. In order to achieve this task, the aforementioned research variables are treated by analyzing real data using Microsoft Excel and SPSS Ver. For all the given elements of this research, as well as assessing the research hypotheses using standard deviations, simple and multiple regressions. In addition, descriptive statistical analysis is used. The research sample consists of eleven industrial companies registered on the Iraq Stock Exchange, with data acquired from their final accounts for the years 2008 to 2019. While the results demonstrated the existence of a correlation and a significant effect of working capital elements accounts receivable, inventory in maximizing the real and market value of these companies in our study sample, hence the two research hypotheses are approved.

Downside Risks as a Basis for Evaluating the Performance of the Investment Portfolio Compared to Traditional Performance Evaluation Measures: The Iraq Stock Exchange as a Model

The research aims to evaluate the performance of an efficient investment portfolio according to traditional performance evaluation models and modern performance evaluation models based on negative side risks, and to know which is more accurate in evaluating the performance of investment portfolios. The research problem was represented by the possibility of inaccuracy of traditional performance evaluation measures that are based on the traditional risks of measurement asymmetry. The traditional risk profile is the standard deviation with the concept of risk, where a sample of (32) companies listed in the Iraqi Stock Exchange were selected, and based on the monthly data of these companies, an efficient investment portfolio was built during the study period, and the research concluded that modern performance evaluation measures are better than Traditional performance evaluation measures. One of the most important recommendations was to evaluate the performance of investment portfolios according to modern performance evaluation indicators that are based on downside risks instead of traditional performance evaluation indicators, as the first achieved results that are much better and more accurate than the results of traditional performance evaluation indicators.