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

Аннотация

INTRODUCTION the nature of the ownership and internal The issue of corporate governance (particularly governance structure, including the characteristics https://www.theamericanjournals.com/index.php/tajssei 166 THE USA JOURNALS THE AMERICAN JOURNAL OF SOCIAL SCIENCE AND EDUCATION INNOVATIONS (ISSN- 2689-0811) VOLUME 06 ISSUE05 of the board of directors) is one of the main issues quality of profits? that attract the attention of academics, 2. Research objective: practitioners, professional organizations, officials, Given the critical role played by the management of and civil society. Due to a series of discoveries, it institutions, especially the internal structure that has attracted attention in developed and, more includes the characteristics of the owner, the recently, developing countries. Which distorts the characteristics of the board of directors, and the financial statements of institutions. in developed characteristics of the audit committee, the quality countries, the quality of interest rates is of the profits of these institutions needs to be considered the primary source of many economic monitored using accounting data, and financing is decisions and is a critical issue for decision- used to determine the degree of influence of makers. financial indicators, especially profitability and The board of directors is the most crucial body market activity, on the quality The announced responsible for the organization’s profits and financial information. Therefore, the research aims preparing the annual accounts. Therefore, it may to achieve various objectives as follows: confirm the countless benefits for the individual 1- Determine the rules and controls related to the and the issues approved by the Board of Directors, goals that the Board of Directors and managers which the organization’s management can use to wish to achieve, which are to reduce the stock increase profits for the benefit of many investors market's value and protect shareholders’ rights. and other related institutions, which raises serious questions. About the benefits of quality reporting 2- Identifying the main aspects of institutional governance necessary to create a sustainable Second: Research Methodology: banking sector that enables it to achieve 1. Research problem: international economic and social goals. Many studies have confirmed that corporate 3- Identifying operations that increase the quality governance plays a vital role in financial reform by of banks’ profits and attract investors. increasing investor confidence in financial reports, 3. The importance of research: encouraging investment, attracting investments and investors, increasing the financing capacity of The importance of this study stems from the institutions, and creating and deepening the stock following theoretical and practical results of the market to achieve economic development, and variables of this research: from here the research problem begins. The main 1- The importance of applying good judgment in the one: “Does corporate governance have an impact economic, administrative, financial, accounting, on the quality of profits?” From this main problem, legal and social aspects. it branches into several sub-problems, as follows: 2- The quality of profits is considered an essential 1. Is there a significant relationship between the source of information for analysts and investors number of board members and the quality of when assessing an organization’s risks. It is profits? regarded as a strong indicator for evaluating the 2. Is there a significant relationship between accuracy and quality of accounting used in many ownership structure and earnings quality? economic decisions in the organization’s market, and it is viewed as a critical decision for decision- 3. Is there a significant relationship between the makers. number of audit committee meetings and the https://www.theamericanjournals.com/index.php/tajssei 167 THE USA JOURNALS THE AMERICAN JOURNAL OF SOCIAL SCIENCE AND EDUCATION INNOVATIONS (ISSN- 2689-0811) VOLUME 06 ISSUE05 3- Changing the institutional mentality that affects the economic field and has become one of opposes changes in economic institutions in Iraq the basic standards adopted in monitoring the for the sake of business continuity and activities of individuals and institutions, such as diversification of ownership. evaluating the performance of institutions, increasing profits in the stock market, and 4- Ensure the presence of experts as consultants or indicating the performance and level of institutions. independent experts in the management of these Therefore, a method of monitoring these institutions in a way that guarantees and confirms institutions' work was adopted to ensure the the principle of independence, honesty, and protection of the rights of shareholders. The role of transparency in all the activities of these governance is clear, as laws are created to define institutions. and implement standards of good governance