The Role of Profits Management Practices on Financial Performance  in Institutions : an Analytical Study on the Iraqi Stock Exchange for the Period 2013-2022

Ghufran Shallal Mohammed; Muaamal Hussein Jwesim; Abdelmoneem Ltaif

doi:10.61132/nuansa.v2i4.1266

Authors

Ghufran Shallal Mohammed AL -Furat AL -Awsat Technical University
Muaamal Hussein Jwesim AL -Furat AL -Awsat Technical University
Abdelmoneem Ltaif University of Sfax

DOI:

https://doi.org/10.61132/nuansa.v2i4.1266

Keywords:

Profits Management, Financial Performance, Institutions

Abstract

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.

Downloads

Download data is not yet available.

References

Abdel-Sahib, A. A. (2019). The relationship between capital structure and banking financial performance in Iraq: A comparative study between commercial and Islamic banks (Master's thesis). University of Kufa, College of Administration and Economics.

Al-Sartawi, A. F. S., & Adel, I. H. (2019). Financial analysis as a tool for evaluating the financial performance of industrial joint stock companies in Palestine: A study of pharmaceutical companies in the Palestine Stock Exchange (2010–2017). Palestine.

Al-Tamimi, A. H. Y., & Al-Saadi, H. H. F. (2015). Profit management: Factors of its emergence, methods, and ways to limit it. Dar Ghaida for Publishing and Distribution.

Anwar, Z. (2019). The corporate governance practices and cost of capital: Evidence from Asian countries (Doctoral thesis). Lahore School of Accountancy and Finance, University of Lahore.

Arnold, G. (2013). Corporate financial management (5th ed.). Pearson Education.

Boudiaf, S. (2018). The role of financial information in evaluating financial performance and predicting financial failure: An applied study in the milk and dairy derivatives sector (Doctoral thesis). Setif University, Algeria.

Enad, A. J., & Jabr, S. A. H. (2022). The impact of earnings management on capital structure: An analytical study in the Iraqi stock market. City of Science College Journal, 14(2), 172–195.

Johnson, R. (2020). The link between environmental, social, and corporate governance disclosure and the cost of capital in South Africa. Journal of Economic and Financial Sciences.

Sayle, A. R., & Kimouche, B. (2021). The impact of financial performance and accounting accruals on the level of real earnings management: A study of a group of Algerian economic institutions for the period (2012–2018). Journal of Industrial Economics, 11(1), 225–248.