The impact of the company's strategy on accounting conservatism: An applied study on a sample of Iraqi banks registered in the Iraq Stock Exchange for the period from 2016-2023

Abstract

This research aims to reveal the relationship between the corporate strategy used in some Iraqi banks listed on the Iraq Stock Exchange and accounting conservatism measured by the accruals method. The research focused on the extent of the relationship between the corporate strategy and accounting conservatism. In order to achieve the research objectives, the published financial data of Iraqi banks were relied upon for a sample of (15) banks. The research years were for the period between (2016-2023). In this research, descriptive statistics and simple regression were used, in addition to using some statistical description methods such as (arithmetic mean and standard deviation). After analyzing the research data and testing its hypotheses, the study reached several results, the most important of which is the existence of a direct and statistically significant relationship between the independent variable represented by the company's strategy and the dependent variable, accounting conservatism. Based on what was reached above, the research recommends the necessity for Iraqi banks to focus on low strategy ratios, to builda a strong strategy that helps management in making decisions to choose an appropriate level of accounting conservatism according to the requirements of that strategy.