The Impact of Profitability on Earnings Management for Commercial Banks Listed on the Iraq Stock Exchange

Abstract

The study aims to analyze and measure the impact of profitability on the profit management of banks listed in the Iraq Stock Exchange. The study relied on a set of financial ratios for the profitability index and the loan-loss allocation model (LLP) to measure profits management, in addition to a number of standard models and statistical analysis methods compatible with the nature of the study to estimate regression equations. Where the research community represents the commercial banks listed in the Iraq Stock Exchange, and the research sample was represented by (10) banks listed in the Iraqi Stock Exchange, and for a period of (2004-2020). The study concluded that there is a statistically significant effect of the independent variable profitability in the management of profits for commercial banks. Based on the results, a series of recommendations are made, the most important of which is the necessity of activating the role of the Securities Commission in controlling banks, and taking appropriate measures against banks that apply profit management, as this leads to misleading the users of financial statements.