أثر حساسية مخاطر السوق على إدارة الارباح للمصارف التجارية المدرجة في سوق العراق للأوراق المالية

Abstract EN

This study aims to analyze and measure the impact of market risk sensitivity on earnings management.

Market risk sensitivity reflects the degree to which changes in interest rates, foreign exchange rates or stock prices can negatively affect economic capital or financial institution profits.

Management acts as an agent and uses accounting information (particularly earnings) to enter into and supervise management bonus contracts.

Therefore, management has its own interests behind its intervention in the financial reporting process.

The study relies on a set of financial ratios for indicators of market risk sensitivity and a loan loss allowance (LLP) model to measure earnings management.

Where the research community represents the commercial banks listed in the Iraq Stock Exchange, and the research sample was represented by (10 banks) out of (42) commercial banks listed in the Iraqi Stock Exchange, and for a period (2004-2020) using annual data.

The study concluded that there is a statistically significant inverse relationship between market sensitivity risks and profit management for the research sample banks.