The Effect of Integration of Coroprate Governance Mechanisms and Audit Quality in Earning Management: An Empirical Analysis of Listed Banks in Iraqi Stock Exchange

  • Authors

    • Hakeem Hammood Flayyih
    • Sallama Ibrahim Ali
    • Yassir Nori Mohammed
    • . .
    2018-11-30
    https://doi.org/10.14419/ijet.v7i4.25.27011
  • external audit, corporate governance, earnings management, banks, Iraq.

  • The aim of this study is to examine the effects of board of directors, audit committee and concentration ownership as corporate governance mechanisms on earning management. The study aims also to investigate the role of audit quality on the association between corporate governance and earning management of listed banks in Iraqi stock exchange for the year 2015. The number of meetings and directors are other factors to be examined. The size of audit committee members and the audit committee presence that are professionally certified are the factors to be considered in audit committee. In another word, the concentration of ownership included both managerial ownership, block shareholders and foreign ownership. The findings showed that external audit has effect on the fiveparameters considered under the effects of corporate governance on earning management. Therefore, the numbers of meetings, the audit committee knowledge, audit committee existence, managerial ownership and foreign ownership significantly have impact on earning management. Conversely, external audit has no impact on the association between block shareholder, size of the board of directors and earning management. In lieu of the study’s outcome, corporate governance proves to be a huge impact on reducing earnings management while the intervention of audit quality equally contributes to the reduction of earnings management practices.

     

     

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    Hammood Flayyih, H., Ibrahim Ali, S., Nori Mohammed, Y., & ., . (2018). The Effect of Integration of Coroprate Governance Mechanisms and Audit Quality in Earning Management: An Empirical Analysis of Listed Banks in Iraqi Stock Exchange. International Journal of Engineering & Technology, 7(4.25), 337-344. https://doi.org/10.14419/ijet.v7i4.25.27011