Effect of the organizational characteristics of banks on the accounting earnings quality An Empirical Study in Iraq


The research aims to test the impact effect of organizational characteristics on the accounting earnings quality in the Iraqi banking sector. Five characteristics were identified, namely: leverage, liquidity, profitability, sales growth and size. The accounting earnings quality was measured in two methods: The first is through discretionary accruals by adopting Modified Jones Model, Proposed by (Dechow et al, 1995). Second, the earnings persistence using the total accruals, Proposed by (Richardson et al., 2005). The results indicate that there is a discrepancy in the level of earnings quality among the 21 research banks during the years 2010 -2015, and some organizational characteristics had a significant effect and others do not. As well as that there is a difference in impact when the measurement model of the earnings quality.