Examining the Impact of Corporate Governance Mechanisms on Financial Performance Considering the Moderating Role of Earnings Quality in Companies Listed on the Iraq Stock Exchange
Keywords:
Corporate governance mechanisms, financial performance, earnings quality, Iraq Stock Exchange companiesAbstract
This study examines the impact of corporate governance mechanisms on financial performance in the context of companies listed on the Iraq Stock Exchange (ISX) while considering the moderating effect of earnings quality. Corporate governance mechanisms play a crucial role in shaping firms’ financial performance, and their effectiveness may vary depending on the quality of earnings. By investigating this relationship, the objective of this research is to provide insights into the interaction between corporate governance, financial performance, and earnings quality in the Iraqi market. Data from 33 listed companies on the Iraq Stock Exchange for the years 2016 to 2021 were utilized in a panel data model with fixed and random effects. The findings of this study contribute to understanding how corporate governance practices influence financial outcomes and highlight the importance of earnings quality as a moderating factor in this relationship. This research has implications for policymakers, investors, and corporate managers seeking to enhance corporate governance practices and improve financial performance in the Iraq Stock Exchange. Given the low performance levels in Iraq, the obtained results can be employed to enhance corporate performance and improve firms' efficiency.
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