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The Effect of Ownership Structure and Audit Quality in Producing High-Quality Financial Statements - Evidence from the Iraq Stock Exchange

Author

Listed:
  • Asaad Mohammed Ali Wahhab

    (College of Administration and Economics, University of Karbala, Iraq)

  • Murtadha Hasan Khlaif

    (College of Administration and Economics, University of Karbala, Iraq)

Abstract

The research aims to measure the impact of the ownership structure and auditing quality in producing high-quality financial statements for a sample of commercial banks on the Iraqi Stock Exchange. Banks remain (23) banks; accordingly, (13) commercial banks were selected as a sample for the research. Their percentage was (57%) of the sample size, as the volume of traded shares, according to the reports of the Iraq Stock Exchange for the year 2020, amounted to (368,460,287497) shares, with a value of (193627218281). Pdt. To achieve the objectives of the research, the researcher used data for the research sample bank for the years (2011-2020), and the ownership structure of the company was measured through the following equation: Ownership structure = (number of shares owned by the company ÷ number of outstanding shares), while the quality of the audit was measured using a variable It is fictitious, where 1 is given to companies that have been audited by the four major auditing companies and 0 if the company is audited by other local companies, and the researcher will use the method of quantitative and statistical analysis together to reach the results and conclusions, and the most important conclusions reached by the research is that the structure of Ownership of major shareholders does not have a significant effect on the financial statements in the banks of the research sample, and the structure of administrative, family, governmental, foreign and exchange ownership does not have a positive moral effect on the financial statements in the banks of the research sample, while the structure of institutional Ownership and concentration of Ownership have a positive moral effect on the financial statements In the companies listed on the Iraq Stock Exchange, as for the quality of the audit, the results showed that there is a direct correlation between the application of the audit. The subscriber and the high-quality financial data and the results also showed that the financial data in the Iraqi banks in the research sample are appropriate, and this means that there is an impact on the accounting information (earnings per share, cash flow per share, book value per share) on the share price in the Iraqi stock market.

Suggested Citation

  • Asaad Mohammed Ali Wahhab & Murtadha Hasan Khlaif, 2022. "The Effect of Ownership Structure and Audit Quality in Producing High-Quality Financial Statements - Evidence from the Iraq Stock Exchange," Technium Social Sciences Journal, Technium Science, vol. 34(1), pages 13-31, August.
    • Handle: RePEc:tec:journl:v:34:y:2022:i:1:p:13-31
    DOI: 10.47577/tssj.v34i1.6987
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    References listed on IDEAS

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    1. Vince Ratnawati, 2018. "The Impact of Institutional Ownership and a Firm's Size on Firm Value: Tax Avoidance as a Moderating Variable," GATR Journals jfbr140, Global Academy of Training and Research (GATR) Enterprise.
    2. Holm, Claus & Zaman, Mahbub, 2012. "Regulating audit quality: Restoring trust and legitimacy," Accounting forum, Elsevier, vol. 36(1), pages 51-61.
    3. Claus Holm & Mahbub Zaman, 2012. "Regulating audit quality: Restoring trust and legitimacy," Accounting Forum, Taylor & Francis Journals, vol. 36(1), pages 51-61, March.
    4. Amahalu Nestor Ndubuisi & Moses Nnoruga Okeke & Obi Juliet Chinyere, 2017. "Audit Quality Determinants: Evidence from Quoted Health Care Firms in Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(4), pages 216-231, October.
    5. Amneh Alkurdi & Munther Al-Nimer & Mohammad Dabaghia, 2017. "Accounting Conservatism and Ownership Structure Effect: Evidence from Industrial and Financial Jordanian Listed Companies," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 608-619.
    6. Dominic Detzen & Anna Gold, 2021. "The different shades of audit quality: A review of the academic literature," Maandblad Voor Accountancy en Bedrijfseconomie Articles, Maandblad Voor Accountancy en Bedrijfseconomie, vol. 95(1-2), pages 5-15, March.
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    Cited by:

    1. Asaad Wahhab & Amna Ibrahim Obaid, 2023. "Adoption of the ISA 500 and its Impact on Audit Quality and Fraud Reduction: Evidence from Iraq," Technium Social Sciences Journal, Technium Science, vol. 45(1), pages 30-48, July.

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    More about this item

    Keywords

    Ownership Structure; Audit Quality; High-Quality Financial Statements; Iraq Stock Exchange;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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