Iraq Stock Exchange Research Articles

The Relationship Between Machiavellianism and the Ethics of the Accounting and Auditing Profession: An Analytical Study of the Opinions of a Sample of Accountants and Auditors in Banks Listed on the Iraq Stock Exchange

Machiavellianism tends to take actions that ignore moral norms and values. Therefore, this research seeks to study the relationship between Machiavellianism and the lack of commitment of accountants and auditors in banks listed in the Iraqi Stock Exchange to the ethics of accounting and auditing represented by the rules of Professional Conduct in order to achieve the research objective, the descriptive analytical approach was followed by designing a questionnaire and distributing it to a group of accountants and auditors working in nine banks listed on the Iraqi Stock Exchange. Excel was used to analyze the data to obtain the results. The research reached several results, the most important of which was the existence of a positive correlation and influence between Machiavellianism and non-compliance with the ethics of the accounting and auditing profession. This relationship is semi-strong or medium with the dimensions of confidentiality and integrity and weak with the dimensions of efficiency and objectivity. Based on these results, several recommendations were proposed, the most important of which are the need to pay attention to the integration of ethical aspects in the basic curricula of the accounting department and the development of continuing education programs to link ethics with the role and responsibility of the accountant and Auditor.

Analyzing the Influence of Dividends on Share Prices in the Iraqi Stock Market from (2010 - 2020)

This study examines the relationship between dividend policies and stock prices among companies listed on the Iraq Stock Exchange from 2010 to 2020. This study utilizes a descriptive analytical approach, drawing on data from annual financial statements and disclosures published by the Iraq Stock Exchange. This study employs a simple linear regression model to analyze the impact of dividends per share and retained earnings per share on the market share price. The findings indicate a negative, statistically insignificant relationship between cash dividends and share prices, whereas retained earnings show a direct positive and significant correlation with stock valuations. Prior research in the Iraqi context has identified cash liquidity as the main determinant of dividend payout decisions, with shareholders favoring regular distributions, regardless of ownership. Studies also find a positive link between profit retention, investment opportunities, and dividends. However, broader challenges facing emerging stock exchanges, such as underperformance, speculation, and a lack of investor knowledge, can negatively impact market performance. This study provides a comprehensive, long-term analysis of dividend payout-stock price dynamics in the Iraqi market, offering valuable insights into how this relationship manifests in an emerging economy setting. The results contribute to the theoretical understanding of the factors driving stock valuation, and have practical implications for investment strategies and corporate dividend policies in Iraq and similar markets. Key recommendations include advertising campaigns to encourage savings, providing investment advisory services, and improving financial disclosure to build investor confidence.

Financial Flexibility and Its Impact on The Firm's Value: A Study on A Sample of Firms Listed on The Iraq Stock Exchange

شكل تقدير وتحليل وتفسير آلية وقنوات التأثير الذي يمكن ان تمارسه المرونة المالية بمؤشراتها الفرعية المتمثلة بـ(السيولة CU، والرافعة المالية ، تجاه قيمة الشركة (MVA) لعينة من الشركات المدرجة في سوق العراق للأوراق المالية مؤلفة من ست شركات وللمدة (2012-2022)، الهدف الرئيس الذي سعى البحث لتحقيقه. وللوصول الى ذلك, علاوة على اثبات فرضياته, اعتمد البحث منهجية مجموع المتوسطات المجمعة المستندة الى منهجية الانحدار الذاتي للفجوات الزمنية الموزعة(PMG/ARDL) (Autoregressive Distributed Lag and Pooled Mean Group)، المستندة على البيانات الطولية المتوازنة (Balanced Panel Data)، وبعدد مشاهدات بلغت (66) مشاهدة، وقد جاءت نتائجه التجريبية لتؤكد على ان ارتفاع مستويات المرونة المالية سواء من خلال ارتفاع مؤشر السيولة منها او عبر انخفاض مؤشر الرافعة المالية عادة ما يرافقها اثارا إيجابية في مؤشر قيمة الشركة على المدى الطويل بسبب الاثر الايجابي الذي تتركه المرونة المالية في ارتفاع اجمالي القيمة السوقية للأوراق المالية المدرجة في السوق المالية، وهو ما يستدعي اهتمام الشركات بمؤشرات المرونة المالية، وتبنيها كدليل ارشادي في عملها لما لها من دور كبير وفعال في التحكم بمصادر تمويلها وحمايتها من خطر التعثر ودعم امكانية اقتناصها الفرص الاستثمارية المتاحة، فضلاً عن مواجهة الازمات المالية والتغلب عليها عبر رفع حجم موجوداتها مقارنة بديونها وضمان توفر السيولة عن المستوى المقبول

Board attributes, risk management and financial performance: Insights from Iraq

Purpose: This study examines how good corporate governance practices and the establishment of risk management committees reduce investors’ risks and improve performance. Research Methodology: Data stream and annual reports were used to acquire secondary data for all 21 banks listed on the Iraqi Stock Exchange between 2019 and 2021, totalling 63 firm-year observations. Data were analyzed using Stata version 15. Results: The data show that board size and independence have strong negative relationships with bank performance. The financial knowledge of the board and independence of the risk management committee had minor positive relationships with performance. Limitations: This study examines board size, independence, financial expertise, and the presence of a risk management committee. Other factors that may impact bank performance include the type of ownership structure, audit committee, and the application of additional financial performance indicators such as Tobin’s Q. Future research could expand to encompass these factors. Contribution: This study aims to provide valuable insights to the Iraqi government and regulators, aiding them in formulating new policies and deliberating on issues related to corporate governance concerning bank performance. It is well-established that both shareholders and companies rely on robust corporate governance mechanisms, especially as a means of augmenting bank value Novelty: The presence of a risk management committee reduces managers' discretion to engage in opportunistic behavior. This study educates regulators on the importance of firms having sound corporate governance and separate and active risk management committees to improve internal control.

The Impact of Using The PATROL Model of Banking Control and Supervision in Improving the Performance a Sample of Commercial Banks Listed on The Iraqi Stock Exchange

The Impact of Using The PATROL Model of Banking Control and Supervision in Improving the Performance a Sample of Commercial Banks Listed on The Iraqi Stock Exchange

The impact of disclosure of sustainability information on firm value an applied study on banks listed on the Iraqi Stock Exchange

The impact of disclosure of sustainability information on firm value an applied study on banks listed on the Iraqi Stock Exchange

The impact of determinants of compliance with international financial reporting standards (IFRS) on the appropriateness of the value of accounting information. An analytical study of a sample of commercial banks listed on the Iraqi stock exchange

The impact of determinants of compliance with international financial reporting standards (IFRS) on the appropriateness of the value of accounting information. An analytical study of a sample of commercial banks listed on the Iraqi stock exchange

Analysis of the accounting financial performance of private listed banks in the emerging market for the period 2010–2022

This study aims to the little impact of accounting financial performance (AFP) analysis on the money market in the Iraqi economy. Potentially limiting future market activity could be international risks and obstacles, which in turn could cause issues and crises (Shah & Jan, 2014; Bakhtiyarovich, 2020)‏. The study concept was inspired by the recognition that there must be communication between the importance of the AFP analysis of the Iraqi securities market and the country’s financial and economic institutions. The sample of the study included ten Iraqi banks listed in the Iraq Stock Exchange (ISE) for the period 2010–2020. The three mathematical models included in the statistical analysis served as the basis for projecting future return and risk values in the Iraqi money market. The potential for being put in peril because of unintended consequences stemming from worldwide disasters. This research yielded several findings, the most significant of which was that the Iraqi securities market is not particularly consequential to the economy. The vulnerability of the economy to international shocks makes it difficult to implement monetary and financial policy.

Effect Some of the Financial Indicators in The Banking Efficiency of Listed Banks Sample in The Iraq Stock Exchange

Effect Some of the Financial Indicators in The Banking Efficiency of Listed Banks Sample in The Iraq Stock Exchange

The effect of audit team and audit committee performance on the quality of audit

The study investigates the impact of audit committee performance (ACP) and audit team (AT) characteristics on audit quality. The research problem emerges when we question whether the characteristics of audit committees (ACs) impact audit quality. Additionally, an inquiry arises regarding the influence of the characteristics of the audit (CAT) team within the audit offices of Iraqi audit firms (AFs) on the audit quality. ACP characteristics include the number of members, independent members, financial and accounting experience of committee members, meeting frequency, and the presentation of financial annual reports (FARs) and auditor’s reports. CAT encompasses the team’s number, experience and industrial specialization (EIS), auditor’s judgment, and time required for audit tasks. We relied on a study (Husain, 2020; Alderman & Jollineau, 2020; Al-taee & Flayyih, 2022) in the study model design. The sample comprises 82 firms from the Iraq Stock Exchange with disclosed financial reports (2021–2022). The results reveal that the presentation of FARs and the industrial specialization and experience of CAT significantly influence audit quality, while other variables show no significant impact.

MEASURING MARKET RESPONSE TO DIVIDEND ANNOUNCEMENTS OF VALUE AND GROWTH STOCK COMPANIES THROUGH INFORMATION CONTENT

The main objective of this research is to demonstrate the extent of the market's response to dividend announcements for value and growth stock companies through information content and to demonstrate the impact of information content and its reflections on the returns of these stocks through the daily event window, which lasts for 21 days, and to provide information to help investors make rational decisions to eliminate the problem of asymmetry of information between insiders (managers) and investors, because information content sends signals to investors in the financial market that they can interpret either positively or negatively, and whose content indicates that the company's management believes that the shares are traded in the financial market at less or more than their real value. The research relied on a sample consisting of (70) dividend announcements by (27) companies from various sectors listed in the Iraqi Financial Market for the period from 1/1/2016 to 31/12/2023. The sample companies were classified into value stocks and growth stocks based on the book value to market value. If the book value is greater than the market value, they are considered value stocks, and if the opposite is true, they are considered growth stocks. Using a number of financial and statistical methods through the EXCEL and SPSS-26 programs in order to analyze the research variables and test its hypotheses, the research reached a number of conclusions, the most important of which was that the results of the event window study proved that value and growth stocks are strongly related to the content of information sent to the Iraqi stock market through dividend announcements, which contradicts the first and second hypotheses. This was proven through the results of the daily averages of the accumulated abnormal returns of value stock companies, which were higher than the averages of growth stocks through the event window. Based on this, the research came out with a number of recommendations, perhaps the most important of which is that the management of the Iraq Stock Exchange should realize the danger of the market's inefficiency in responding to public information in general and dividend announcements in particular, because this could be exploited by some professionals to formulate trading rules that enable them to achieve abnormal returns at the expense of investors. In the market, causing a disruption in market performance.

Measuring and analyzing the impact of some monetary policy indicators on the trading volume of the Iraq stock exchange for the period 2004-2023

Measuring and analyzing the impact of some monetary policy indicators on the trading volume of the Iraq stock exchange for the period 2004-2023

An Investigation into the Impact of Profitability on Annual Growth Rate among the Listed Manufacturing Companies on the Iraqi Stock Exchange

The basic objective of this study is to evaluate the effects of Net Profit Ratio (NPM), Gross Profit Ratio (GPM), and return on Assets (ROA) on the compound annual growth rate (CAGR) Growth Rate of the Iraqi Industrial Sector for the companies listed on the stock exchange (ISX). Among the companies listed on the Iraqi stock market, only 10 in the industrial sector were accepted for their accurate annual reports. Application of sampling techniques for the period 2011-2020. The study used Sample panel data of regression data and quantitative descriptive methodology, using SPSS-26 to process the data. The results of the study have clarified that the growth rate of the compound annual growth rate (CAGR) is positively influenced by Net Profit Margin (NPM), but significantly. The growth rate of compound annual growth rate (CAGR) has no significant impact due to the Gross Profit Margin (GPM). The compound annual growth rate (CAGR) is significantly affected by the return on assets (ROA). In the industrial sector listed on the Iraqi Stock Exchange (ISX) for the period (2011 to 2020). 30.6% of the independent variables influence the Compound Annual Growth Rate (CAGR) growth rate of the dependent variable.

A comparative study of the reputation of Iraqi stock exchange companies before and after the presence of ISIS

الغرض من هذا البحث هو دراسة تأثير وجود داعش في العراق على سمعة الشركات المساهمة في هذا البلد. ولهذا الغرض تم قياس سمعة الشركات المقبولة في سوق العراق للأوراق المالية من خلال نموذج الانحدار واستخدام المتغير الافتراضي فيما يتعلق بوجود تنظيم داعش في العراق تم التحقيق في الموضوع.
 أما طريقة إجراء هذا البحث فهي الوصفية-الارتباطية وتضم العينة المختارة 35 شركة تم إدراجها في سوق الأوراق المالية العراقية خلال الأعوام 2013 إلى 2018. تم اختبار فرضيات البحث باستخدام نموذج الانحدار اللوجستي المتعدد بالاعتماد على بيانات اللوحة.
 وتشير نتائج هذا البحث إلى وجود علاقة كبيرة بين وجود داعش في العراق وسمعة الشركات المقبولة في بورصة هذا البلد، مما يعني أن سمعة الشركات في البورصة العراقية انخفضت مع وجود داعش في العراق.
 الكلمات المفتاحية: سمعة الشركة، داعش، الاقتصاد العراقي، الانحدار اللوجستي

Corporate Governance Strategy and its Role in Improving the Sustainable Financial Performance of Iraqi Banks

This study aims to demonstrate the role of corporate governance strategy and its effectiveness in improving sustainable financial performance in Iraqi banks. Traditional indicators are ineffective as they rely solely on the financial perspective. These indicators fail to consider current and future values and aspects such as quality, innovation, development, and sustainability, which directly impact customer satisfaction within the economic unit's environment. Furthermore, the absence of a sustainable strategic dimension and the lack of knowledge regarding achieving objectives pose challenges. The study sample consists of the four most active commercial national banks listed on the Iraq Stock Exchange. A total of 80 questionnaires were utilized, based on the absolute balances and income statements spanning from 2018 to 2021. Various statistical methods, including the use of the SPSS program, were employed to analyze the data and examine the relationship and impact between the research variables. The research yielded several conclusions, with the most significant being a positive and strong correlation between corporate governance and its principles, as evidenced by the results of the statistical analysis. Additionally, there was a correlation between sustainable financial performance and its indicators within the sample banks studied.

Evaluation of the internal control system of banks listed on the Iraq Stock Exchange according to the COSO framework during the Covid-19 pandemic

This study aims to assess the internal control system in the banks listed on the Iraq Stock Exchange in accordance with the COSO framework during the Covid-19 pandemic period by contrasting the internal control system components for the research sample with the internal control system components of the COSO framework and determining the degree of compatibility between them as well as the importance of applying the internal control system procedures according to the COSO framework during the Covid-19 pandemic period. the significance of implementing the internal control system procedures in accordance with the COSO framework during Covid-19 pandemic period. To achieve this goal, a questionnaire was designed consisting of five axes, distributed to 300 employees of banks listed in the Iraq Stock Exchange, 197of which were retrieved. The research reached conclusions, the most important of which is that there is compatibility between the components of the internal control system in the banks listed on the Iraq Stock Exchange with the components of the internal control system of the COSO framework. The results also showed the importance of applying the procedures of the internal control system in accordance with the COSO framework with all its components during the period of the Covid-19 pandemic. Information and communication won the first place in terms of importance, followed sequentially by risk assessment, control activities, control environment, and Monitoring. The study presented many recommendations, the most important of which is the need to urge local professional organizations to keep pace with the recent developments of the updated global internal control frameworks and try to spread them among professionals through the training courses they hold.

Religious Events and Interpretation of Fluctuations in Stock Markets Evidence from Price Anomalies during the Arbaeen Occasion in the Iraq Stock Exchange

Many studies and research have shown close relationships between seasonal phenomena that are related to religious beliefs and anomalies in returns and stock prices, which paved the way for exploring other anomaly days and wider time series that occur in the second month of the Hijri year, which is the month of Safar in the holy city of Karbala in Iraq, as it will represent an experimental addition to the financial scientific path and aid in providing evidence of those fluctuations and what they produce in influencing prices and returns in the stock market. The study, which conducted an analysis of stock prices in the banking sector and the hotel sector in the market for the period from 2013-2022, shows a low estimate of the price of one share compared to the volume of billion shares, as well as a gradual decline in share prices for the two sectors, the study sample, and the share prices in the month of Safar, which witnessed a remarkable fluctuation in the general average of the periods. The three are divided into ten days each period, at the beginning of the month, during the visit, and at the end of the month, with a slight decrease in the first and middle periods and then a rise again at the end of the month. This supports the general recession that affects various sectors, including the economic and financial ones, and constitutes an opportunity for the investment decision-maker to benefit from these price fluctuations.

A comparative study of the relationship between audit quality and earnings management in the markets of Iraq and Oman

The present study investigates the relationship between audit quality and earnings management in banks listed on the Stock Exchange of Iraq and Oman. This paper used audit firm size, auditors’ industry expertise, audit report timeliness, auditor change, and auditors’ opinions to measure audit quality. Financial statements, notes attached to financial statements, and reports of independent auditors of 28 banks listed on the Iraqi Stock Exchange and 8 banks listed on the Oman Stock Exchange during the financial period of 7 years (2015 to 2021), and hypotheses were tested using EViews software and panel data. The results of the hypothesis testing showed no significant relationship between the firm size and the auditors’ change and earnings management for both countries (Iraq and Oman). This is while the relationship between the auditor’s industry expertise, the timely presentation of the audit report, and the auditor’s opinion and earnings management for both countries (Iraq and Oman) is negative.

The Effect of Planning for Profitability and Liquidity on the Market Share Prices of Commercial Banks Listed on the Iraq Stock Exchange for the Period (2018-2013)

The Effect of Planning for Profitability and Liquidity on the Market Share Prices of Commercial Banks Listed on the Iraq Stock Exchange for the Period (2018-2013)

The impact of hedging mechanisms according to the financial reporting standard (9) on a vital canvas (Applied study on a sample of banks listed in the Iraq Stock Exchange

من خلال واقع التقارير المالية ومخاطر الائتمان وعدم تطبيق معيار الابلاغ المالي رقم (9) فيما يتعلق بمحاسبة التحوط لتجنب مخاطر الائتمان التي تواجه البنوك فقد اهتمت هذه الرسالة ب دراسة محاسبة التحوط وفقا لمعيار الابلاغ المالي (9).مشكلة البحث تمثلت بتطبيق اليات التحوط وفق المعيار الابلاغ المالي (9)لمواجهه مخاطر الائتمان الذي قد يؤثر سلبا على تطبيقه في المصارف العراقية .حيث تبرز اهمية هذا البحث من خلال تحقيق اهداف البحث في التوصل لحل من خلال تطبيق معيار الابلاغ المالي (9) لمواجهه مخاطر الائتمان في المصارف العراقية .