The Impact of Corporate Governance on Accounting Conservatism in the Financial Statements of Justice Shareholders

Authors

  • Thamer Kadhim Al-Abedi Lecturer at Department of Accounting, College of Administration and Economics, Mustansiriyah University, Iraq. Author
  • Ali Mahmood Hasen Madenat Alelem university college, Baghdad, Iraq. Author
  • Hussein Ali Mohaisen Lecturer at Department of Control and Internal Auditing, Mustansiriyah University Iraq. Author
  • Hakeem Hammood Flayyih Ph.D. Candidate at Institut Supérieur de Gestion de Tunis, UNIVERSITY OF TUNIS, TUNISIA Author

Keywords:

Corporate Governance, Conservatism, Accounting, Financial Reporting

Abstract

Conservatism creates a system that prevents overpayments to managers and reduces the conflict between the interests of shareholders and managers. On the other hand, conservatism over corporate governance, while reducing opportunistic management payments, causes the manager to report losses from the sale of assets and also stops operations, and prevents the manager from continuing to invest in projects with negative net worth. Therefore, the aim of this study was to determine the impact of corporate governance on accounting conservatism in the financial reports of justice shareholders. The statistical population of the present study is the companies listed on the Iraq Justice Stock Exchange and using the elimination sampling method, 30 companies were selected as the research sample during the period 2013 to 2020. Using multivariate regression models, the results indicate that there is no relationship between corporate governance mechanisms and conservatism in financial reporting.

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Published

2022-01-30

How to Cite

Al-Abedi, T. K., Hasen, A. M., Mohaisen, H. A., & Flayyih, H. H. (2022). The Impact of Corporate Governance on Accounting Conservatism in the Financial Statements of Justice Shareholders. CENTRAL ASIA AND THE CAUCASUS, 23(1), 272-281. https://ca-c.org/CAC/index.php/cac/article/view/61

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