Iraq Stock Exchange Research Articles

THE IMPACT OF CORPORATE GOVERNANCE ON THE EARNINGS QUALITY FOR A SAMPLE OF BANKS LISTED ON THE IRAQ STOCK EXCHANGE

Purpose: The purpose of the current study is to shed light on the influential role of corporate governance in improving the quality of profits in banks listed on the Iraqi Stock Exchange. Design/methodology/approach: To achieve the objectives of the current study and test the hypotheses from an experimental perspective by reviewing previous studies and relying on them to provide a model that shows the importance of corporate governance in the quality of profits. To achieve this, a sample of 18 banks listed on the Iraq Stock Exchange was approved for 2013-2022. Results: The research concludes that governance statistically affects the quality of profits for the banks in the research sample. It has become clear that the ownership structure, the number of board members, and the number of audit committee meetings effectively improve the quality of profits. Originality/value: Given the great need to prepare financial statements that are characterized by quality and reliability, this matter requires the availability of an effective control system that works to provide an appropriate work environment and contributes to raising the quality of profits announced in the reports.

An Empirical Study of Profitability Indicators, Asset Investment, and Their Impact on Stock Returns for a Group of Banks Listed on the Iraq Stock Exchange for the Period (2004-2022)

The research aims to determine the impact of the asset investment indicator (natural logarithm of assets) and profitability indicators (return on assets, return on equity, return on working capital, operating profit margin, and market value/book value) on stock returns for a group of banks listed on the Iraq Stock Exchange. The research assumed no significant (positive) relationship between asset investment and stock return at a significant level (α = 0.05), as well as no significant (positive) relationship between profitability indicators and stock return at a significant level (α = 0.05) for the sample banks. The research reached a number of conclusions, including that profitability and asset investment play a special role in asset pricing across sectors not only with variables but also those related to high return premiums, and they also help in explaining a wide range of other outlier cases that some models have failed to explain due to this unique role played through profitability and investment, indicating their interpretive strength, which is of utmost importance. The research has presented a set of recommendations including analyzing the financial market accurately and in-depth before making any investment decision to identify the opportunities and risks associated with each type of asset, and banks should consult experts to make appropriate investment decisions that align with the objectives set by bank managements.

THE IMPACT OF EXTERNAL AUDIT QUALITY CHARACTERISTICS ON EARNINGS MANAGEMENT IN BANKS LISTED ON THE IRAQ STOCK EXCHANGE

Purpose: The current study aims to shed light on the influential role of audit quality in reducing opportunistic management methods in management. Design/Methodology/Approach: To achieve the objectives of the current study and test the hypotheses from an experimental perspective by reviewing previous studies and relying on them to provide a model that shows the importance of audit quality in reducing earnings management. Results: Originality/value: Given that there is a great need to prepare financial statements that are characterized by quality and reliability, this matter requires the availability of an external audit characterized by quality to ensure proper financial reporting for the economic units listed on the Iraq Stock Exchange through the external auditor limiting the means of managing profits that Followed by management.

EFFECT OF DEBT STRUCTURE ON PROFITABILITY TOOLS (ANALYTICAL STUDY: A SAMPLE OF IRAQI INDUSTRIAL FIRMS)

This study aims to know the impact of the corporate debt structure on its profitability tools. The industrial sector firms operating in the Iraq Stock Exchange were selected as one of the important sectors as a community for the study. A sample of 10 industrial firms was chosen for the period (2014-2018), and the study problem focused That most firms suffer from high cost of capital as a result of the lack of prior planning to develop an optimal financial structure commensurate with its financial capabilities, by which the firm can reach safety through the use of a structure that includes the ratio of debt and equity from which the firm can achieve a higher rate of return From the cost of funding sources and with less risks, and then provide a theoretical and cognitive framework for the variables of the study, and use the descriptive analytical method, as the statistical programs (SPSS-26) and (Excel-21) were used to analyze the effect of independent variables (debt structure) on the dependent variables ( profitability tools) to reach a set of results by testing the hypotheses of the study whether they were accepted or not, Multiple regression was used to test the effect between the variables, and a number of conclusions were reached, the most important of which is that the debt structure has a positive effect if the rate of return for profitability tools(return on investment, return on equity and revenue power) is higher than the cost of debt for investments that were financed with debt. And vice versa, as she referred to a number of recommendations, the most important of which is paying attention to raising the debt ratio in the financial structure for the purpose of benefiting from tax savings and achieving higher returns than the cost of debt to achieve the optimal financial structure.

Hedging an Efficient Portfolio against Expected Inflation Risk: An Applied Research in the Iraq Stock Exchange

This research aims to hedge the efficient portfolio of the investor against the expected inflation risk and to evaluate the extent of improvement in the quality of its performance. It has applied to an intentional sample of companies whose shares traded on the Iraq Stock Exchange, consisting of (37) companies, with (120) monthly observations for each company from 2012 to 2021. The simple ranking model of Elton et al. (1978) has been used to build the nominally efficient portfolio and the inflation-adjusted model of Chen and Moore (1985) to hedge a portfolio against expected inflation risk. The Sharpe, Treynor, Jensen, and M2 models have been used to evaluate the performance of portfolios. The research has reached several results. The most important of which is the presence of a big difference in the components of the efficient hedged portfolio compared to the nominal unhedged portfolio, in addition to the presence of a big difference in the amounts of investment weights between the two portfolios. The results of the analysis have also shown a significant improvement in the quality of the performance of the efficient portfolio that has hedged against the expected inflation risk compared to the unhedged nominal portfolio. The originality of the research and its scientific value lie in the fact that it is the first to adopt the inflation-adjusted model in hedging the efficient portfolios of investors against the inflation risk. In addition, it is the first knowledge contribution with empirical evidence about the efficient portfolio's hedging against that risk on the Iraq Stock Exchange. Paper type: Research Paper

The Effect Of Added Market Value On Stock Pricing Efficiency According To The Sharpe Model

The main objective of the research is to study the effect of added market value on the efficiency of stock prices according to the Sharpe model for pricing corporate stocks, according to what emerged from the literature review at the theoretical level, including previous studies, and to deduce its trends associated with the power of interpretation predicted by the research hypotheses in their content related to the impact of value. Added market value to the efficiency of stock prices of the companies studied at the level of the industrial sector in the Iraqi Stock Exchange. A sample was tested using a purposive sampling method that included (13) thirteen industrial companies contributing to the Iraqi Stock Exchange out of (21) twenty-one industrial companies. Over the time horizon of the research, which is (13) thirteen years (2010-2022), then the variables were measured and analyzed at the financial and statistical levels, described and interpreted using the double data method (panel data) to show the impact of the time series, as well as using description and inference tools. Statisticians, including measures of central tendency and dispersion in relation to the results of statistical description, correlation and regression as far as interpretation and inference are concerned, and after conducting mathematical analyzes of the studied company data and testing the research hypothesis in the selected sample, a number of results were reached, including the effect of the added market value owned by the companies Directly with the company's stock prices according to the use of the Sharpe model for stock pricing, and companies that have an added market value have high stock prices as a result of their possession of a high market value and thus a distinctive position among other competitors. Also, companies that have an added market value achieve large profits, and it is Then the research came out with a number of recommendations, paying attention to the availability and measurement of the added market value of Iraqi industrial companies contributing to the Iraqi stock market, which contributes to maximizing the companies’ stock prices. The research also came up with a number of future studies that require other designs in the way of scientific investigation and an attempt to improve the theory. . Paper type: Research paper

The Influence of Credit Risk Using Derivative Financial Instruments on the Performance Commercial banks

The research aims to reveal the influence of credit risks using Derivative Financial Instruments (DFIs) on the financial performance of commercial banks in Iraq. To achieve the research aim and test its main hypothesis, a questionnaire is distributed to listed commercial banks in the Iraq Stock Exchange and that apply DFIs. The researcher used the questionnaire as the main tool in collecting data. Financial data of the variables of the study are analysed by a simple regression method, the arithmetic mean(AM) and standard deviation. The study used the statistical program (SPSS ) to analyse the data. The research sample consisted of (70) questionnaire forms that were distributed and (68) valid forms were recovered. Research results show that using DFIs reduces exposure to interest rate risks, exchange rates and price fluctuations. The financial crisis is the result of the excessive use of financial derivatives outside regulatory restrictions and securitization to collect liquidity. Financial derivatives represent the fastest-growing form of financial transactions and continue to grow even in crisis conditions. DFIs help to identify risks associated with economic losses incurred by the economic unit as a result of weaknesses in the management and operation of derivatives contracts. Accounting profit-based performance indicators, such as return on assets, return on property rights, earnings per share and cash flows per share, contribute to the evaluation of performance, as well as the use of DFIs contribute to increasing profits. The study shows that credit risks using DFIs have a significant positive influence on performances financial in commercial banks in Iraq. Paper type: Research paper.

Analysis of Underwriting Activity and its Impact on the Profitability Ratios of the Insurance Companies Listed in the Iraq Stock Exchange

Abstract It is commonly accepted that the success and expansion of insurance companies’ underwriting operations, which is indicated by the premiums received from insurance policies, is reflected in their profitability rates. During the period of 2010 to 2021, Iraqi insurance companies in the private sector that are listed on the Iraq Stock Exchange experienced a fluctuation in the increase and noticeable decrease of gross written premiums, which had a negative impact on their profitability ratios. The aim of this investigation is to analyze the underwriting activities carried out by all insurance companies that are publicly listed on the Iraq Stock Exchange spanning from 2010 to 2021, and assess the impact of these activities on the companies’ profitability rates. To evaluate the profitability of these firms, three indicators are used, namely the rate of return on assets, return on equity, and profit margin ratio. The study employs Data Panel models using Eviews 12 to identify the research samples during the study period. Additionally, the pooled regression model is used to compare the findings and test the hypotheses of the study. In a structured manner, data is collected from the annual reports released by the Iraq Stock Exchange. The statistical examination of the findings reveals that the gross written premium has a significant and positive influence on all of the profitability ratios that were evaluated in this study, namely the rate of return on assets, return on equity, and profit margin ratio.

The impact of terrorism on stock price behavior: An event study of a sample of tourism companies listed on the Iraq Stock Exchange

تهدف هذه الدراسة الى بيان تأثير الإعلان عن توزيع الأرباح في ضل لا تماثل المعلومات وفي ضل ظاهرة الإرهاب لغرض التنبؤ بأسعار الأسهم للشركات المدرجة في سوق العراق للأوراق المالية، تَّم تطبيق الدراسة على عينة من مختلف قطاعات السوق مع مراعاة التنوع في القطاعات شملت (1) شركة سد الموصل استوفت شروط الدراسة والتي حَددت الشركات التي وزعت أرباح لسنتين متتاليين (2014 -2015)، وتَّم استعمال أُسلوب دراسة الحدث بنافذة حدث (40) يوم بمدة (20) قبل وبعد الحدث لقياس لا تماثل المعلومات، إذ تم اعتماد أسلوب التنبؤ للتّعرف على اّلاثار المستقبلية لقرار مقسوم الارباح على قرارات المستثمرين في ضل ظروف عدم الاستقرار ، إضافة الى استعمال أسلوبين احصائيين لاختبار فرضيات الدراسة هما أسلوب تحليل الانحدار وأسلوب السيناريوهات وتوصلت الدراسة الى مجموعة من الاستنتاجات أهمها امكانية تحقيق عوائد غير عادية بالاعتماد على المحتوى المعلوماتي لمقسوم الارباح كما أن هنالك تأثيرًا ذي دلالة احصائية لقرار مقسوم الأرباح في لا تماثل المعلومات ويساهم أسلوب السيناريو في التنبؤ بأسعار الأسهم بشكل افضل من الأسلوب التقليدي، ومن اهم التوصيات التي توصلت اليها الدراسة ضرورة اعتماد الأساليب العلمية لقياس تأثير الأحداث الإرهابية المؤثرة الخاصة بالسوق على دقّة النتائج المالية ولاسيمّا استخدام نماذج رياضية لقياس تأثير الأحداث الخاصة بالسوق على أسعار الأسهم كذلك يٌفضل اعتماد أُسلوب السيناريو في التنبؤ بأسعار الأسهم والأداء المالي واعتماده كنموذج يقدم خيارات متعددة أمام القرارات المالية فضلاً عن عدم الاكتفاء بالعائد غير العادي كأداة واحدة فقط لاتخاذ قرارات الاستثمار بل يجب أن يؤخذ بنظر الاعتبار العوامل الأخرى مثل المخاطرة.

The Impact of International Accounting and Auditing Standards on the Quality of Financial Reporting

Objective: This study aims to measure the impact of applying international standards for financial reporting and auditing on the quality of financial reports for a sample of Iraqi joint-stock companies. Methodology: The study goal is achieved by developing a special form to examine financial reports in addition to a special form to examine the reports of auditors and the extent of compliance with the adopted international standards. To achieve the research objectives, a content analysis method was used for the financial reports of a sample consisting of 18 companies listed on the Iraq Stock Exchange distributed across 8 different sectors of activity. Results: Our findings reveal that most of these companies do not adopt international accounting standards and financial reporting, except for the banking sector. Additionally, statutory auditors do not follow international auditing standards, except for those auditing companies that apply international financial reporting standards. Conclusion: The non-compliance to International Accounting and Auditing Standardsfor the most of listed companies could affect negatively the quality and reliability of financial information provided by them.

THE IMPACT OF INTERNAL CORPORATE GOVERNANCE MECHANISMS ON RELEVANCE OF THE VALUE OF ACCOUNTING INFORMATION FOR IRAQI BANKS LISTED ON THE IRAQI STOCK EXCHANGE

The research aims to study the impact of the internal mechanisms of corporate governance on the appropriateness of the value of accounting information. To achieve the research goal, the price model was used to measure the appropriateness of accounting information's value. The research community was also represented by commercial banks listed on the Iraqi Stock Exchange, while the research sample was represented by (10) Commercial banks listed on the Iraq Stock Exchange. The study concluded that there is a statistically significant effect of the independent variable, the number of board of directors meetings, on the appropriateness of the value of accounting information in commercial banks. The number of independent members also has a statistically significant impact on the appropriateness of the value of accounting information.

The financing structure and its role in enhancing financial recovery - an applied study in the Iraqi Stock Exchange

جاءت هذه الدراسة لتسليط الضوء على قياس العلاقة واختبار الفرضيات بين مؤشرات الهيكل التمويلي ومؤشرات التعافي المالي وبالتالي من تحليل نتائجها نصل الى قدرة المصارف على تحقيق أهدافها ؛ من خلال نتائجها التي تؤكد بان التعافي المالي من خلال مؤشراته يظهر تحسناً في فعالية ، وقدرة معظم المصارف على تحقيق مؤشرات اداء مالي مقبول خاصة في السنوات الاخيرة، ومن أجل تحقيق أهداف وفرضية الدراسة تم اختيار المصارف المختارة في سوق العراق للأوراق المالية كمجتمع للدراسة واختيار عينة عشوائية من سبع مصارف توافرت عنها البيانات ،وتمً الاعتماد على البيانات المالية المنشورة في التقارير السنوية لسوق العراق للأوراق المالية والتقارير المالية السنوية للمصارف وللفترة الزمنية (2008-2017)، ولأجل معالجة البيانات تم استخدام العديد من المؤشرات المالية والاساليب الاحصائية واستخرجت النتائج باستخدام البرنامج الاحصائي (spss-V26 ) وبرنامج Excel2016) ).

Evaluating the Level of Disclosure in Interim Financial Reports in Accordance with IAS (34)-A Comparative Applied Study of a Sample of Banks Registered in The Iraq Stock Exchange and The Amman Stock Exchange

Evaluating the Level of Disclosure in Interim Financial Reports in Accordance with IAS (34)-A Comparative Applied Study of a Sample of Banks Registered in The Iraq Stock Exchange and The Amman Stock Exchange

Relationship between Profitability Indicators and Maximization Market Value A dded a nd I ntr insic for the I ndustr ial Companies

Purpose: This research aims to study the impact of profitability indicators on maximizing the market value added and intrinsic value for industrial companies listed on the Iraq Stock Exchange. Design/methodology/approach: The research was structured using the analysis study method, incorporating various financial indicators, such as Net Profit Margin, Basic Earning Power, Return on Assets, Return on Equity, to examine their impact on market value added and intrinsic value. Findings: The researchers utilized financial data form fourteen industrial companies operating in Iraq ; listed in the financial market, spanning the period from 2011 to 2022. The data underwent analysis employing financial methods and various statistical tools, including single and multiple regression analysis as well as transaction analysis. The results revealed that the profitability indicators adopted by the studied companies exerted varied effects on maximizing the market value or intrinsic value. This variance was observed in accordance with the nature and orientations of each company. The underlying reason for this variation can be attributed to the direct relationship of the financial indicators used directly with the investors, thereby influencing management decisions. Research limitations/implications: The paper focuses on four variables representatives of firm profitability indicators to maximize both the market value added and the intrinsic value; it is necessary expanding the independent variables. Originality/value: This research contributes to the literature on Maximizing value levels for industrial companies. It aids firm leaders and decision-makers understanding the significant role of profitability indicators in maximizing value in financial markets by offering a more comprehensive view of their effectiveness.

The role of banking policy in stimulating indirect foreign investment in Iraq: (a study of a sample of commercial banks listed on the Iraqi Stock Exchange for the period 2010-2021)

يهدف البحث الى تحليل وتقدير العلاقة بين مؤشرات السياسة المصرفية والاستثمار الاجنبي غير المباشر، اذ يحتل موضوع السياسة المصرفية والاستثمار الاجنبي غير المباشر أهمية كبيرة سواء للباحثين أو لاداراة المصارف وايجاد العلاقة بينهما وكيفية تحقيق الموائمة بينهما لأهمية ذلك سواء للمصارف أو لأصحاب المصالح، وتم أخذ مجتمع احصائي تمثل بالمصارف التجارية الخاصة المدرجة في سوق الأوراق المالية ، فالمصارف هي التي تتولى الاكتتاب في الاسهم والسندات بالنيابة عن الشركات المساهمة في السوق المالية , وكذلك تقوم بالنيابة عن عملائها بشراء وبيع وحفظ الاوراق المالية. والقطاع المصرفي قطاع فعال وأحد مكونات سوق الاوراق المالية وهو الوعاء الذي تتجمع فيه السيولة وبدوره يوجهها للاستثمارات المناسبة, فكلما كانت ثقة المصارف في التعامل بالأوراق المالية كبيرة كلما كان وجودها اكبر في سوق هذه الاوراق وبذلك تشجع عملائها على شراء وبيع ادوات السوق المتاحة .

THE EFFECT OF APPLYING GOOD GOVERNANCE ON THE QUALITY OF FINANCIAL REPORTS FOR A SAMPLE OF INDUSTRIAL COMPANIES LISTED ON THE IRAQI STOCK EXCHANGE

The research aimed to test the relationship between good governance and the quality of financial reports. For a sample of Iraqi companies listed on the Iraq Stock Exchange, the study sample was 16 industrial companies from 2015-2021. The quality of financial reports was measured through the Jones 1991 scale, and good governance was measured through the number of members of the Board of Directors and the number of independent members. The study concluded a positive relationship between good governance and the quality of financial reports, as the size of the board of directors improves the quality of financial reports. There was also a statistically significant effect of the number of independent board members on the quality of financial reports.

The impact of forward-looking disclosure on the transparency of integrated reporting through identifying risks and opportunities, developing strategies, and allocating resources.

The research aims to reveal the extent to which forward-looking information contributes to influencing the transparency of the content of integrated reports through disclosure of risks, opportunities, strategy, and resource allocation. A questionnaire was conducted that clarifies the extent to which forward-looking information can enhance the transparency of integrated reports. The questionnaire was distributed to a group of beneficiaries of forward-looking information in the Iraqi stock market, including investors for the most part, and some auditors. The most important conclusions that were reached are that there is a positive (direct) relationship with a moral effect between forward-looking disclosure and knowledge of risks. And opportunities, strategy, and resource allocation. The most important recommendations are the preparation of training workshops by the Iraqi Stock Exchange to manage the economic unit, to help it know how to forecast and the basics of preparing forward-looking information.

THE SIGNIFICANCE OF CLOUD ACCOUNTING IMPLEMENTING AND ITS INFLUENCE ON ENHANCING THE QUALITY OF FINANCIAL REPORTING: EVIDENCE FROM EMERGING MARKETS

The present study seeks to elucidate the significant impact of cloud accounting technologies as a type of innovation in information technology and its contribution to enhancing the financial reporting standard within the scope of international standards. To reach the objectives of this study and look at hypotheses through a descriptive and analytical lens, it is necessary to look at previous research and use it to make a questionnaire that shows how important it is to use cloud accounting techniques to improve the quality of financial reporting. The system comprises two axes, and the total number of questions reached 26. The distribution was conducted among a subset of employees in publicly traded corporations. 118 participants were included in the study conducted on the Iraqi Stock Exchange. The hypotheses were examined using descriptive statistics, the Pearson correlation matrix, and the structural equation modelling technique with the statistical software SPSS version 26. The findings demonstrated a statistically significant influence of cloud accounting, namely at a rate of 26.6%, on attaining high-quality financial reporting. It became evident that the future of cloud accounting in Iraq would be remarkable if the government and all companies made every effort to overcome the challenges and barriers that hinder its implementation, thereby significantly enhancing the generation of high-quality financial statements aligned with international financial reporting standards.

The Impact of Mandatory IFRS Adoption on the Value Relevance of Published Accounting Information: Evidence from Iraqi Private Banks

The study aimed to identify the impact of the International Financial Reporting Standards (IFRS) on the value Relevance of accounting information in a sample of banks listed on the Iraq Stock Exchange. The study dealt with the method of analyzing the information content of the annual financial statements published on the Iraq Stock Exchange website, which number (46). Banks. (15) Banks were chosen as a sample for the study for the period (2012-2021). This sample was determined according to two basic conditions: the availability of financial statements for the year 2021 and the banks’ continuation of disclosing their data for the specified years without interruption. The independent variable was measured by financial reporting standards. The international standard (IFRS) was set at a value of (1.0), and the second variable (value Relevance) was measured using the model (Ohlson, 1995). Data analysis was also conducted through the use of statistical methods and tools and the statistical program (stata), and the study concluded that there is a relationship there is a positive moral significance between the application of International Financial Reporting Standards (IFRS) and the value Relevance of published accounting information. This means that the greater the trend towards adopting international financial reporting standards is accompanied by an increase in the levels of value Relevance of accounting information. The study recommended the necessity the Central Bank of Iraq obligates banks listed on the Iraqi Stock Exchange to comply with the requirements of international financial reporting standards, which in turn reduces information asymmetry by disclosing Relevance accounting information to current and prospective investors.

The role of responsibility accounting in activating corporate governance - an analytical study of the opinions of a sample of employees of some private banks listed on the Iraq Stock Exchange

The study aims to ascertain the significance of responsibility accounting in activating corporate governance in some private banks listed on the Iraq Stock Exchange (Ashur Investment Bank, Zain Iraq Islamic Bank, Asia Iraq Islamic Bank, Sumer Commercial Bank, Nour Iraq Islamic Bank). The approach was used (Descriptive-analytical) to analyze the nature of the relationship between the variables of the study. The questionnaire was used as a main tool for collecting data. (280) questionnaires were distributed to a random sample of (auditors working in the control and internal audit departments) in some private banks listed on the Iraqi Stock Exchange. The number of questionnaires retrieved was (272), of which (256) were valid for statistical analysis. The researcher employed many statistical tools and methodologies, including the arithmetic mean, standard deviation, correlation coefficient, and basic regression approach, to analyse the practical element of the study. The data was analysed using complex statistical software programmes, namely AMOS.V (.24), SPSS v.26, and Excel (2007). Theoretical findings indicate the presence of a knowledge gap about the function of responsibility accounting in promoting corporate governance, both in a general context and specifically within certain private banks listed on the Iraqi Stock Exchange. The study's practical findings indicate a moral correlation and a moral impact association between responsibility accounting and its dimensions, and corporate governance. The survey yielded several conclusions indicating a strong interest and enthusiasm among staff of certain private banks in prioritising corporate governance.