Controlling financial risks and their impact on the quality of accounting information and its impact on investors’ decisions

Presented to
The Council of the College of Administration and Economics – Karbala University It is part of the Requirements for the Degree of Master of science in accounting
By

Safaa Jabbar Abdoon
Supervised by

Assistant Professor

Azhar Subhi Al-Jubouri

Abstract

          This research aims to measure the impact of financial risk control on the quality of accounting information and how it reflects on investors’ decisions. The study seeks to achieve several objectives, including determining the impact of financial risk control on investors’ decisions through the mediation of accounting information quality, as well as identifying the separate impacts of both financial risk control and accounting information quality on investors’ decisions. The descriptive-analytical method will be used to describe the research variables and analyze the financial data using SPSS. Several Iraqi banks listed on the Iraq Stock Exchange will be studied by distributing 154 questionnaires to a group of accountants and auditors working in those banks to achieve the research objectives.

          The results showed a statistically significant positive impact of both financial risk control and accounting information quality on investors’ decisions. Additionally, accounting information quality emerged as a partial mediator in the relationship between financial risk control and investors’ decisions. Based on these findings, we recommend enhancing the role of internal control systems in monitoring and evaluating financial risk control, adopting advanced techniques for financial risk control to improve the effectiveness and speed of risk detection and response, thereby improving the quality of accounting information to ensure high-quality accounting information for economic and financial decision-making.