The Application of International Financial Reporting Standards and Their Impact on Earnings Management and Its Reflection on Investors’ Decisions
(Applied Research in Iraqi Private Banks Listed in The Iraq Stock Exchange)
A Master’s Thesis Submitted to The Board of The College of Administration and Economics / University of Karbala, Which Is Part of The Requirements for Obtaining a Master’s Degree in Accounting
From The Student
Zaid Neamah Abbas
Supervised by
Ass. Prof. Dr. Jasim Idan Barak Al Mamouri
The research aims to demonstrate the impact of the application of the International Financial Reporting Standards (IFRS) in the Iraqi environment by testing the impact of the application of these standards in profit management and its reflection on investor decisions, by applying to a sample of (11) Iraqi commercial banks listed on the Iraq Stock Exchange for the period (2011-2020), i.e. 110 views (bank / year).
All research variables were measured based on models developed by previous literature, where the level of application of IFRS standards was measured by means of a dummy variable that takes the number (0) for the years before the application of the standards, and the number (1) for the years after the application of the standards. Earnings management practices using a model (Kothari et al., 2005). As for investors’ decisions, they were measured by trading volume, which is measured by the traded values of shares, as well as using a set of statistical methods to test the research hypotheses and to know the size of the correlation, the impact and the level of significance between the research variables, using the Statistical Package for Social Sciences (SPSS Vr.20) program. And the statistical analysis program (Eviews-v9) as well as the statistical program (AMOS).
The results of the research showed: There is a statistically significant and adverse effect of the application of international financial reporting standards (IFRS) in earnings management, and investors’ decisions, and the absence of a statistically significant effect of earnings management in investors’ decisions.
