Faculty Members from the University of Karbala Publish a Scientific Research on Evaluating the Effectiveness of Internal Control and Its Impact on Financial Performance: Evidence from the Iraqi Telecommunications Sector

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Faculty Members from the University of Karbala Publish a Scientific Research on Evaluating the Effectiveness of Internal Control and Its Impact on Financial Performance: Evidence from the Iraqi Telecommunications Sector

A team of faculty members from the University of Karbala has published a joint scientific research paper titled:
“Evaluating the Effectiveness of Internal Control and Its Impact on Financial Performance: Evidence from the Iraqi Telecommunications Sector”
in the Technium Social Sciences Journal – Romania.

The research was conducted by:

  • Prof. Dr. Asaad Mohammed Ali Wahab Al-Awad, College of Administration and Economics
  • Asst. Lecturer Murtadha Hassan Khalif Al-Ghanimi, College of Administration and Economics
  • Asst. Lecturer Raghad Muneer Farhan, College of Physical Education and Sports Sciences

Research Summary:

Effective internal control is considered a cornerstone for safeguarding corporate assets and ensuring sustainable institutional performance through sound strategic decisions. This study aims to assess the impact of adequate internal control mechanisms on the financial performance of Iraqi telecommunications companies.

The study focused on three major companies: Zain Iraq, Asiacell, and Korek Telecom. Due to the closure of Korek in 2024, the sample was drawn from Zain Iraq and Asiacell.

To achieve the research objectives, the authors collected financial performance data from the Iraq Stock Exchange for the period 2018–2023, focusing on key performance indicators (KPIs) widely used in strategic decision-making processes.

Audited financial statements were analyzed using commonly accepted financial ratios to evaluate the effectiveness of internal controls. The findings indicate that internal control mechanisms showed improved effectiveness in 2023. However, there were consistent failures observed between 2019 and 2021, which were likely due to the impact of the COVID-19 pandemic and the subsequent economic disruptions affecting businesses globally.

This research contributes to the understanding of internal control dynamics in emerging markets and provides valuable insights for policymakers, auditors, and business leaders in the region.