Research

22 pages, 807 KiB

Open AccessArticle

The Effect of Corporate Governance in Islamic Banking on the Agility of Iraqi Banks

by Jabbar Sehen Issa and Mohammad Reza Abbaszadeh

J. Risk Financial Manag. 2023, 16(6), 292; https://doi.org/10.3390/jrfm16060292 - 02 Jun 2023

Viewed by 1358

The primary purpose of the research is to investigate the effect of the quality of corporate governance in Islamic banking on the agility of Iraqi banks. For this purpose, the structural-equation-modeling (SEM) method was used to investigate the effect of independent variables on [...] Read more.

The primary purpose of the research is to investigate the effect of the quality of corporate governance in Islamic banking on the agility of Iraqi banks. For this purpose, the structural-equation-modeling (SEM) method was used to investigate the effect of independent variables on the dependent variable. The statistical population of this study is all managers, employees, and customers of the public and private banks of Iraq, and a total of 70 questionnaires were included and analyzed to test the paper’s hypotheses. The research results indicate that corporate governance in Islamic banking has a positive impact on the agility of Iraqi banks, meaning that with an increase in corporate-governance mechanisms in Iraqi Islamic banking, the capability of banks to make timely reactions to potential changes is likely to increase. In this regard, the provision of various services in a flexible and snap manner to a wide range of customers, the acceptance of innovation and IT-related processes, the identification and application of environmental opportunities, and having a culture of learning and cooperating are expected to be realized by improving the quality of corporate-governance mechanisms. Our findings may apply to policymakers to improve market efficiency through designing regulations and bank managers to increase their general performance. The current paper is among the initial attempts to determine the influential factors on bank agility in emerging markets. Full article

(This article belongs to the Special Issue Accounting and Auditing during the World Crisis)

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27 pages, 416 KiB

Open AccessArticle

Organizational Risk Management and Performance from the Perspective of Fraud: A Comparative Study in Iraq, Iran, and Saudi Arabia

by Hussein Alkhyyoon, Mohammad Reza Abbaszadeh and Farzaneh Nassir Zadeh

J. Risk Financial Manag. 2023, 16(3), 205; https://doi.org/10.3390/jrfm16030205 - 16 Mar 2023

Cited by 2 | Viewed by 2390

Abstract

This study aimed to examine the impact of enterprise risk management (ERM) on the firm performance of capital markets in developing nations such as Iran, Saudi Arabia, and Iraq. In order to achieve the study’s primary purpose, the economic environments of Iran, Iraq, [...] Read more.

This study aimed to examine the impact of enterprise risk management (ERM) on the firm performance of capital markets in developing nations such as Iran, Saudi Arabia, and Iraq. In order to achieve the study’s primary purpose, the economic environments of Iran, Iraq, and Saudi Arabia, three neighboring and developing nations, were examined from 2012 to 2019. The hypotheses were tested using panel regression analysis. According to the data, ERM might boost the return on assets and lower the total assets of Iranian enterprises while raising the total assets of Iraqi firms. In addition, the data demonstrated that ERM decreased sales growth and boosted net profit margins in Saudi Arabian companies. ERM enhanced the return on assets in Iranian enterprises and sales growth in Saudi Arabian firms while lowering sales growth in Iraqi firms. In addition, it was shown that total asset turnover increased in non-fraudulent Iranian companies but fell in their Iraqi counterparts. The outcomes of this study revealed substantial evidence regarding the financial conditions and performance of companies operating in emerging nations. As a result, it can be inferred that ERM efficiency and firm performance can be influenced by the firm’s nature and structure, as the findings in these three economic environments were fundamentally distinct. This research contributed to the literature on ERM as one of the essential elements influencing business performance in emerging economies with varying capital market laws. In addition, the literature and acquired data demonstrate the scope of fraud and its influence on the performance of businesses in developing nations. Full article

(This article belongs to the Special Issue Accounting and Auditing during the World Crisis)

22 pages, 1255 KiB

Open AccessArticle

The Effect of Ethics in Business on Happiness, Aggressiveness and Inconsistency of Efforts and Rewards

by Saif Mahdi Muslim Al-Ameedee and Mahdi Moradi

J. Risk Financial Manag. 2023, 16(3), 195; https://doi.org/10.3390/jrfm16030195 - 13 Mar 2023

Viewed by 2352

Abstract

The present study investigates the effect of business ethics on happiness, aggression and inconsistency of effort and reward of auditors in Iran and Iraq. The statistical population of the present study includes all partners, managers and auditors working in audit institutions in Iran [...] Read more.

The present study investigates the effect of business ethics on happiness, aggression and inconsistency of effort and reward of auditors in Iran and Iraq. The statistical population of the present study includes all partners, managers and auditors working in audit institutions in Iran and partners of the audit institutions, assistant auditors, auditors, individual second rank and individual first rank, with a total of 365 questionnaires completed by Iranian respondents out of 450 questionnaires and 250 questionnaires completed by Iraqi respondents out of 350 questionnaires, a total of 615 questionnaires from the two countries in 2022. Also, the methods of variance analysis and ordinary least squares regression and Smart PLS 3 and Stata 15 software were used to analyze the data and test the hypotheses. The results from testing this research’s hypotheses indicate a negative and significant relationship between business ethics and aggression, effort-reward mismatch and a positive and significant relationship between business ethics and happiness. Since the current research was conducted in the emerging financial markets of Iran and Iraq, which are highly competitive, along with having special economic conditions, and since the occupation of the ISIS terrorist group, the civil wars in Iraq, severe world economic sanctions against Iran and the global crisis of Covid-19 in Iran and Iraq have led to special conditions, the current research can bring helpful information to readers and help the development of science and knowledge in this field. Full article

(This article belongs to the Special Issue Accounting and Auditing during the World Crisis)

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22 pages, 425 KiB

Open AccessArticle

The Effect of Social Capital on Auditor’s Performance

by Maryamalsadat Mousavi Azghandi, Sahar Jabbari, Hossien Rezaei Ranjbar and Ahmed Al-janabi

J. Risk Financial Manag. 2023, 16(2), 119; https://doi.org/10.3390/jrfm16020119 - 13 Feb 2023

Viewed by 1206

Abstract

This paper investigates the relationship between social capital and auditor’s performance in Iranian listed firms. The sample included 128 firms on the Tehran Stock Exchange from 2014 to 2020. The research method was descriptive-correlational, and the relationship between research variables was explained using [...] Read more.

This paper investigates the relationship between social capital and auditor’s performance in Iranian listed firms. The sample included 128 firms on the Tehran Stock Exchange from 2014 to 2020. The research method was descriptive-correlational, and the relationship between research variables was explained using regression models based on the panel data. The results illustrated that social capital positively correlates with auditor performance and Audit report quality. In other words, social capital decreases audit opinion shopping, audit expectation gap, internal control weakness, and audit report lag. Therefore, society’s influential assets, social capital, and audit report quality strongly influence the auditor’s performance. The auditor’s performance affects the probability of discovery and reporting material errors and misstatements. Therefore, recognizing influential factors on auditors’ performance can improve the quality of audit reports. Full article

(This article belongs to the Special Issue Accounting and Auditing during the World Crisis)

28 pages, 421 KiB

Open AccessArticle

The Relationship between Intellectual Capital and Audit Fees

by Mahmoud Lari Dashtbayaz, Amjed Hameed Mezher, Khalid Haitham Khalid Albadr and Bashaer Khudhair Abbas Alkafaji

J. Risk Financial Manag. 2023, 16(2), 93; https://doi.org/10.3390/jrfm16020093 - 05 Feb 2023

Cited by 2 | Viewed by 2449

Abstract

The present study investigates whether intellectual capital (IC) is related to audit fees and financial statement restatements in companies listed on the Iraq Stock Exchange (ISE). The present study is a pioneer investigation of this topic in emerging markets. Using a sample of [...] Read more.

The present study investigates whether intellectual capital (IC) is related to audit fees and financial statement restatements in companies listed on the Iraq Stock Exchange (ISE). The present study is a pioneer investigation of this topic in emerging markets. Using a sample of all listed companies on the ISE from 2014 to 2020, the research hypotheses are tested with multiple regression based on panel data and the fixed-effects model. The results demonstrate that intellectual capital is positively and significantly related to normal and abnormal audit fees. Moreover, findings indicate direct and significant relationships between intellectual capital components and normal and abnormal audit fees. This means investment in IC components is likely to determine the auditors’ evaluation of a given client’s riskiness. Thus, an efficient IC investment level might be considered a key factor that companies are expected to consider. The findings of this study provide valuable implications for users of financial statements, analysts, and policymakers with information regarding IC, risk determinants, and audit fees. Policymakers can improve market efficiency by implementing regulations that foster IC disclosure as a risk-determinant factor. Full article

(This article belongs to the Special Issue Accounting and Auditing during the World Crisis)

12 pages, 289 KiB

Open AccessArticle

The Effect of Managerial Myopia on the Adjustment Speed of the Company’s Financial Leverage towards the Optimal Leverage

by Vahab Rostami, Hamed Kargar and Mahdis Samimifard

J. Risk Financial Manag. 2022, 15(12), 581; https://doi.org/10.3390/jrfm15120581 - 06 Dec 2022

Cited by 1 | Viewed by 1389

Abstract

The adjustment speed of financial leverage indicates the movement of companies towards the optimal capital structure, and clearly shows the financing policies of companies. The importance of optimal leverage is such that the growth and survival of companies depend on this factor. This [...] Read more.

The adjustment speed of financial leverage indicates the movement of companies towards the optimal capital structure, and clearly shows the financing policies of companies. The importance of optimal leverage is such that the growth and survival of companies depend on this factor. This study investigates the effect of managers’ myopia on the adjustment speed of financial leverage toward optimal leverage. The current research is applied, and from the methodological point of view, the correlation is a causal type (retrospective). The statistical population of the research includes all the companies admitted to the Tehran Stock Exchange between 2011 and 2020, and using the systematic elimination sampling method, 124 companies were selected as the research sample. The research results showed that the myopia of managers has an opposite effect on the adjustment speed of financial leverage, so in companies with myopic managers, the adjustment speed of financial leverage decreases towards optimal leverage. Full article

(This article belongs to the Special Issue Accounting and Auditing during the World Crisis)

22 pages, 404 KiB

Open AccessArticle

The Role of Corporate Governance in Investment Efficiency and Financial Information Disclosure Risk in Companies Listed on the Tehran Stock Exchange

by Samira Moghaddamzadeh Kashani and Mahmoud Mousavi Shiri

J. Risk Financial Manag. 2022, 15(12), 577; https://doi.org/10.3390/jrfm15120577 - 03 Dec 2022

Cited by 2 | Viewed by 2794

Abstract

This study’s primary purpose is to investigate corporate governance’s role in investment efficiency and financial information disclosure risk in companies listed on the Tehran Stock Exchange. A multivariate linear regression model based on the panel data model was used to test the research [...] Read more.

This study’s primary purpose is to investigate corporate governance’s role in investment efficiency and financial information disclosure risk in companies listed on the Tehran Stock Exchange. A multivariate linear regression model based on the panel data model was used to test the research hypotheses. The results of the survey of 140 companies listed on the Tehran Stock Exchange from 2015 to 2021 indicate that investment efficiency has increased by increasing the quality of corporate governance. In addition, research findings show that improving the quality of corporate governance reduces the risk of financial information disclosure. The life cycle and firm size were used to evaluate the robustness of the results obtained in this study. It was observed that improving corporate governance in companies in the stages of growth and maturity increases investment efficiency and reduces the financial information disclosure risk. In contrast, in companies that are in the decline stage, it reduces investment efficiency and increases the risk of financial information disclosure. In terms of firm size, it was also observed that, in small firms, as corporate governance increases, investment efficiency decreases, and the risk of financial information disclosure increases. However, investment efficiency and financial information disclosure reduce risk by improving large companies’ corporate governance. Full article

(This article belongs to the Special Issue Accounting and Auditing during the World Crisis)

18 pages, 593 KiB

Open AccessArticle

Developing a Model of Insurance Securitisation in Iranian Environmental Conditions

by Mahshid Peivandi, Mehdi Zeynali, Mahdi Salehi, Ali Paytakhti Oskooe and Younes Badavar Nahandi

J. Risk Financial Manag. 2022, 15(11), 544; https://doi.org/10.3390/jrfm15110544 - 21 Nov 2022

Viewed by 1610

Abstract

As a growing industry in Iran, the insurance industry has dramatically grasped researchers’ and managers’ attention. Among the various issues in this industry, measuring and evaluating the efficiency and performance of its units and branches has always been considered by relevant experts because [...] Read more.

As a growing industry in Iran, the insurance industry has dramatically grasped researchers’ and managers’ attention. Among the various issues in this industry, measuring and evaluating the efficiency and performance of its units and branches has always been considered by relevant experts because such evaluation can help us take adequate steps to improve this area. Through securitisation, insurance companies may mitigate the cost of their capital, increase the return on equity, and improve other metrics that affect their operating performance. Securitisation increases capital productivity in the insurance industry. Therefore, the present study was conducted in 2020 to review and develop a model of insurance securitisation in Iran. The present study is exploratory research. Thus, 13 experts and commentators in insurance securities were interviewed. Second, based on the theme analysis, the content of the interviews was analysed, and a proposed model was developed. Then, according to the obtained model, a questionnaire was designed and distributed among insurance industry experts. Two concepts of validity and reliability were used to validate the questionnaire. Based on the model, 10 main factors were identified as influencing insurance securitisation. Insurance securitisation, management of Iran’s environmental conditions, the role of the capital market in insurance, financing, economic development, optimal risk management, risk transfer process in insurance securitisation, investment culture, support of regulatory bodies and facilities in the securities issuance process, utilisation of technical knowledge and specialised human resources are the factors identified in the research. The results showed that all these factors identified from the interviews were confirmed, and the model was sufficiently valid. Full article

(This article belongs to the Special Issue Accounting and Auditing during the World Crisis)

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11 pages, 264 KiB

Open AccessArticle

A Comparative Analysis of Reputation in Enlisted Firms on the Iraq Stock Exchange

by Hind Shafeeq Nimr Al-Maliki

J. Risk Financial Manag. 2022, 15(11), 541; https://doi.org/10.3390/jrfm15110541 - 20 Nov 2022

Viewed by 1139

Abstract

This paper aims to assess the impact of ISIS’s presence in Iraq on the reputation of listed firms on the Iraq Stock Exchange. This paper’s method is descriptive–correlational, and the selected sample includes 35 listed firms on the Iraq Stock Exchange during 2014–2019. [...] Read more.

This paper aims to assess the impact of ISIS’s presence in Iraq on the reputation of listed firms on the Iraq Stock Exchange. This paper’s method is descriptive–correlational, and the selected sample includes 35 listed firms on the Iraq Stock Exchange during 2014–2019. This study measures the reputation of listed firms on the Iraq Stock Exchange. The presence of ISIS in Iraq is analyzed using a regression model and a dummy variable. Research hypotheses were tested using a multivariate regression model based on panel data. The obtained results show a significant relationship between the presence of ISIS in Iraq and the reputation of listed firms on the Iraq Stock Exchange, which means the presence of ISIS in Iraq has declined listed firms’ reputation on the Iraq Stock Exchange. Since the present study is a pioneer in examining this issue in an emerging economy, especially ISIS’s existence, the current study results may give academia and practitioners a profound insight. Full article

(This article belongs to the Special Issue Accounting and Auditing during the World Crisis)

15 pages, 320 KiB

Open AccessArticle

The Effectiveness of Management Ability on Firm Value and Tax Avoidance

by Maryam Seifzadeh

J. Risk Financial Manag. 2022, 15(11), 539; https://doi.org/10.3390/jrfm15110539 - 18 Nov 2022

Cited by 3 | Viewed by 2198

Abstract

The current study investigates the relationship between tax avoidance, management ability, and firm value. Three hypotheses are proposed to meet the paper’s objective. For conducting such a practical study based on a post-event descriptive correlational approach, data are gathered from the website of [...] Read more.

The current study investigates the relationship between tax avoidance, management ability, and firm value. Three hypotheses are proposed to meet the paper’s objective. For conducting such a practical study based on a post-event descriptive correlational approach, data are gathered from the website of the Tehran Stock Exchange during 2014–2020. A total of 183 companies were selected through the systematic elimination method and analyzed using the R statistical software. The results indicated a negative relationship between managerial ability and tax avoidance. Moreover, we find a significant negative relationship between tax avoidance and firm value. Finally, the findings argue that in companies with high-ability managers, the intensity of the negative relationship between tax avoidance and firm value is mitigated. Full article

(This article belongs to the Special Issue Accounting and Auditing during the World Crisis)

17 pages, 324 KiB

Open AccessArticle

The Relationship between Audit Adjustments and Audit Quality in Iraq

by Mahdi Salehi, Mohammed Ibrahim Jebur, Saleh Orfizadeh and Ali Mohammed Abbas Aljahnabi

J. Risk Financial Manag. 2022, 15(8), 330; https://doi.org/10.3390/jrfm15080330 - 26 Jul 2022

Cited by 7 | Viewed by 2444

Abstract

The present research aims to assess the potential impact of audit adjustments on the audit quality for the listed companies on the Iraqi Stock Exchange. In other words, this research attempts to answer whether the audit adjustments can improve the audit quality or [...] Read more.

The present research aims to assess the potential impact of audit adjustments on the audit quality for the listed companies on the Iraqi Stock Exchange. In other words, this research attempts to answer whether the audit adjustments can improve the audit quality or not. To achieve the objectives, a multivariate regression model was employed to test the hypotheses. The research hypotheses were tested using a sample of 35 listed firms on the Iraqi Stock Exchange for 2014–2020 by exploiting a multiple regression model based on the panel data technique. The research findings indicate a positive and significant relationship between audit adjustments and quality. Such findings demonstrate that audit adjustment might be considered a quality factor for audit services. Since no research has addressed such a subject in Iraq, the study can provide helpful information for the equity owners, board of directors, and audit firms, contributing to developing science and knowledge in the auditing field of study. Full article

(This article belongs to the Special Issue Accounting and Auditing during the World Crisis)

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