The relationship between accounting conservatism and investor sentiment

Abstract

 The thesis aims to clarify the concept of accounting conservatism, its importance, its types, conditional and unconditional conservatism, its differences, and how to represent them quantitatively. and its intellectual and applied impact on the relationship between conservatism and investor sentiment, using a sample of 120 observations in Iraqi commercial banks listed on the Iraq Stock Exchange for the period from 2013-2022. The variables were measured quantitatively, as conditional conservatism was measured using the earnings skewness and unconditional conservatism using the accruals index and the turnover rate and the share price to its share of profits for investor sentiment. The statistical analysis was conducted using the (SPSS) Statistical Package for the Social Sciences program. A series of preliminary tests were conducted to verify the data's suitability for statistical analysis. These included tests of normal data distribution, examination of multicollinearity, and weak autocorrelation between independent and control variables After ensuring the necessary conditions were met, the research hypotheses were tested using multiple linear regression analysis. The results show no statistically significant effect of conservatism on investor sentiment, Considering the results reached by this research, and after conducting a comprehensive and accurate analysis of the data collected and interpreted, the researcher presents a set of recommendations as follows: The text advocates for the enhancement of accounting conservatism methodologies in banking institutions, focusing on achieving optimal balance, and promoting the use of certified financial analysts through awareness programs, workshops, webinars, and publications.