Administrative intervention in accounting measurement and its impact on the company’s value and continuity
A Thesis Submitted to the Board of the College of Administrative & Economics – Karbala University, as Partial Fulfillment of Requirements for the Degree of PhD Philosophy in Accounting
By:
Layth Ali Hammadi Al-Tameemi
Supervised by:
Prof. Dr. Asaad Mohammed Ali Wahhab Al-Awad
Abstract:
The objective of the research is to provide a scientific and intellectual framework for the concept of administrative intervention. It seeks to elucidate the mechanisms employed by the administration to achieve this intervention, identify its various forms, analyses the underlying reasons and vulnerabilities that contribute to it, and examine the detrimental outcomes resulting from intervention driven by personal interests. This study examines the effects of this intervention on the value and continuity of ten banks listed on the Iraqi Stock Exchange. The analysis includes 69 observations from 2016 to 2022. The research variables represented by the administrative intervention were measured by assessing the management intervention methods, namely accounting conservatism and earnings management. Value was assessed utilizing Tobin’s Q equation, whereas continuity was evaluated utilizing the Altman model (Z-Score). Utilize the statistical analysis software SPSS to verify the accuracy and reliability of the data for statistical analysis, and perform the standard distribution test for the data. Among the researcher’s most crucial findings, The majority of banks in the research sample did not implement value maximization methods by decreasing costs, fulfilling customer needs, and enhancing cash flows through the adoption of a well-defined long-term strategy. The banks in the research sample require a more distinct vision from management in order to decrease regulatory interventions and resolve disagreements between owners and top managers. This complicates the decision-making process for management, particularly when influential shareholders become involved. This hinders the optimization of resource utilization and long-term growth planning, hence reducing the danger of value depreciation. It is observed that the majority of private sector banks in Iraq priorities generating revenue through currency auctions, neglecting their fundamental purpose of fostering private sector development. Consequently, any sanctions imposed on these banks can lead to a major crisis in the currency auction and result in increased exchange rates, thereby posing challenges to the national economy. What is the significance of social responsibility closure and how does it impact the company’s value.
