The effect of ownership structure on the quality of financial reporting of some companies listed on the Iraq Stock Exchange

Abstract

The research aims to study the theoretical and practical impact and relationship between ownership structure and financial reporting by application in (4) Iraqi commercial banks listed on the Iraq Stock Exchange for the period from 2013 to 2017 AD.

The research variables were measured quantitatively based on the published financial reports of the private Iraqi banks that were the research sample. The ownership structure was measured by dividing the number of shares owned by shareholders according to each type of ownership structure by the company’s total shares. The researcher also used to measure the quality of financial reporting with an indicator. (Accounting conservatism) based on the earnings skewness model, as well as conducting approved statistical tests. Among the most important findings of the research is that corporate governance works to control opportunistic behavior of management, protect investors, prevent companies from failing and, as a result, increase their value. Providing financial reporting honestly, completely and impartially, and the possibility of relying on it by current and prospective investors and lenders, enables them to make the right choice. The company’s potential. It improves the management of its resources, and this can be known from the company’s financial statements for each period, and the financial situation expected to attract investors to the company. Increasing the share price increases the company’s value.