Examining the Impact of Managerial Narcissism on Earnings Quality Considering the Moderating Role of Corporate Governance in Companies Listed on the Iraq Stock Exchange

Abstract

The primary objective of this study is to examine the moderating role of corporate governance in the impact of managerial narcissism on earnings quality in companies listed on the Iraq Stock Exchange. The study covers all companies listed on the Iraq Stock Exchange during the period from 2016 to 2021. This research is applied in nature, and to analyze the research hypotheses, a multivariate regression model has been employed using EViews software. The results of the research hypotheses indicate that managerial narcissism is associated with lower earnings quality. Furthermore, corporate governance moderates the negative relationship between managerial narcissism and earnings quality in a decreasing direction. Therefore, regulators should consider other institutional audit relationships, such as those formed between the audit firm and client personnel, when evaluating earnings quality.