Determining the Extent to which the Firm Value Responds to the Characteristics of the Quality of Accounting Profits An Application in a Sample of Iraqi Contributing Banks for the Period (2015-2020)
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Abstract
The current research focused on testing the relationship and
influence between the characteristics of the quality of
accounting profits and the value of the establishment of the
Iraqi contributing banks, which numbered (16) banks and for a
period of (6) years (2015-2020). The secondary data collected
from the annual and semi-annual reports of the listed banks
used, and the multiple linear regression model relied upon to
test the relationship between the quality of accounting profits as
an independent variable, which measured by (quality of
receivables, estimated receivables, predictive ability, and
continuity of profits). In addition, the value of the enterprise as
a dependent variable, which measured by (Tobin's Q, market value to book value). The results showed that there is no
significant correlation between the characteristics of the quality
of accounting profits and the value of the establishment. As well
as the absence of a statistically significant effect relationship
between the characteristics of the quality of accounting profits
and the value of the establishment. This indicates that investors
in the Iraqi environment do not study and evaluate the quality
of the profits disclosed in banks, and do not take into account
the relative amount of the components of receivables and cash
flows, but are concerned with the total sum of the profits
disclosed. This indicates that investors in these markets
interpret the net profit in a consistent manner, regardless of the
accounting policies and tools that used to reach this profit. The
research recommends the need to give greater importance to the
quality of accounting profits because it is one of the most
important tools that help in measuring the quality of accounting
profits in light of the spread of wrong accounting practices to
maximize the value of the establishment. By increasing the
quality of financial reports. Keywords: quality of accounting
profits, value of the establishment, receivables.