Accounting, Finance and Computational Intelligence

The aim of this study was to investigate the impact of corporate governance mechanisms on financial performance considering the moderating role of earnings quality in companies listed on the Iraq Stock Exchange. In this research, data for testing the study hypotheses were collected from the Central Bank of Iraq, audited financial statements of companies listed on the Baghdad Stock Exchange, and the official website www.isx-iq.net. The statistical population consisted of all companies listed on the Baghdad Stock Exchange during the period from 2016 to 2021. Systematic elimination sampling was used for sample selection. Statistical analysis to estimate the research model was conducted using multiple regression. For this purpose, Excel and EViews software were used, and the models were estimated through random effects, fixed effects panel data methods, as well as ordinary least squares (OLS). Based on the data from Iraqi listed companies, hypotheses one through six were confirmed. The results showed that, in line with the theoretical foundations, the percentage of institutional ownership, board independence, and internal audit effectiveness have a significant and positive effect on performance. However, CEO duality leads to a decline in performance. Furthermore, earnings quality enhances the relationship between internal audit effectiveness and performance, and it also weakens the negative relationship between CEO duality and performance.

The objective of this study was to examine the impact of managerial narcissism on earnings quality, taking into account the moderating role of corporate governance in companies listed on the Iraq Stock Exchange. Two methods—document analysis and library research—were used to collect information and data. The library research method was employed for preliminary studies and to develop the theoretical framework and literature review by referring to books, journals, theses, and articles. Document analysis was used to gather data for testing the research hypotheses by accessing the Central Bank of Iraq, audited financial statements of companies listed on the Baghdad Stock Exchange, and the website of the Iraq Stock Exchange. The statistical population of this study included all companies listed on the Baghdad Stock Exchange during the period from 2016 to 2021. A systematic elimination method was used for sampling. To analyze the data and test the hypotheses, multiple regression analysis was applied using EViews software. The results of the first hypothesis test at a 5% error level showed that managerial narcissism has a significant effect on earnings persistence. An increase in managerial narcissism in Iraqi companies can lead to a decline in earnings quality. The results of the second hypothesis test at the 5% error level revealed that CEO narcissism does not have a significant effect on corporate governance; therefore, the second hypothesis is rejected. Furthermore, the results of the third hypothesis test indicate that corporate governance negatively moderates the relationship between CEO narcissism and corporate earnings quality. Corporate governance is an independent assurance activity designed to add value and improve organizational operations and can act as a driver of corporate earnings quality.

This study aims to investigate the moderating role of managerial overconfidence in the relationship between accounting conservatism and the lack of transparency in financial reporting among companies listed on the Tehran Stock Exchange between 2019 and 2024. The study population included all listed firms on the Tehran Stock Exchange. A final sample of 176 companies (1056 firm-year observations) was selected using a systematic exclusion method. Accounting conservatism was measured using the Khan and Watts (2009) model, financial opacity was estimated using discretionary accruals based on the modified Jones model, and managerial overconfidence was captured via excess investment in assets. Data analysis was conducted using multivariate regression models via EViews 13. The results revealed a significant negative effect of accounting conservatism on financial reporting opacity (β = -0.453, p < 0.01). Additionally, managerial overconfidence significantly moderated this relationship, with the interaction term (Conservatism × Overconfidence) being positive and significant (β = +0.076, p < 0.01). This implies that overconfident managers reduce the effectiveness of conservative accounting in mitigating opacity. Accounting conservatism serves as an effective mechanism to enhance the transparency of financial reports, thereby improving stakeholder trust and market stability. However, managerial overconfidence can dilute this effect by weakening the enforcement of conservative principles, potentially leading to overly optimistic financial disclosures. It is recommended that firms invest in managerial self-awareness programs to mitigate the adverse impact of overconfidence on financial reporting.

Among the anomalies observed in contrast to classical finance is momentum, a concept derived from physics that represents the persistence in past performance and examines the existence of inertia and the root of continuity in the future outperformance of previous winning stocks and the underperformance of previous losing stocks. On the other hand, industry time-series momentum focuses solely on absolute performance, and its strategies are dependent on temporally varying net long positions. Hence, time-series momentum has outpaced other strategies. In examining the role of information dissemination on the effect of industry time-series momentum, indicators with valid meanings were selected under both positive and negative signals in order to incorporate the dimension of the informational environment. In this regard, information discontinuity and noise level were used as proxies and measured across 120 listed companies using a systematic elimination method and within four decile-based portfolios structured under 3-month strategies over holding periods ranging from 1 to 36 months, during the years 2021 to 2023. Ultimately, across all long-term portfolio formation strategies, including two short-term and nine short-term holding periods, the effect of industry time-series momentum was found to be stronger during boom periods; thus, the research hypothesis is confirmed.

The main objective of this study is to examine the relationship between the previous management experience of senior executives and tax avoidance in companies listed on the Tehran Stock Exchange. This research is applied in purpose and analytical in nature. It uses a panel dataset from 133 listed companies over a five-year period (2018–2022). The econometric analysis was conducted using panel data regression models with fixed effects. Financial data were extracted from audited financial statements and processed using Excel and Stata software. Control variables included ROA, firm size, leverage, market-to-book ratio, and asset composition. Regression results show a statistically significant positive relationship between the previous management experience of senior executives and the level of tax avoidance. Additionally, return on assets and tangible assets show positive and significant effects on tax avoidance, whereas inventory and operating cash flows show negative and significant effects. The model explains approximately 8.28% of the variation in the dependent variable. Diagnostic tests confirm model adequacy: variance inflation factors indicate no multicollinearity, the Breusch-Pagan test confirms heteroskedasticity which was corrected using GLS, and the Wooldridge test shows no autocorrelation. Prior managerial experience significantly influences the propensity of senior executives to engage in tax avoidance. Managers with a history of serving in other public firms appear to have greater capabilities in identifying and exploiting tax loopholes. These findings highlight the importance of executive background in financial strategy formation and suggest practical implications for tax authorities in risk assessment and compliance strategies.

The significance of taxation in achieving the annual budget revenue targets necessitates the reform of tax system processes and highlights the inconsistencies between tax auditing practices and accounting standards. The need to address this issue stems from the divergence between the principles governing financial accounting and tax accounting, which leads to discrepancies between accounting profit and taxable income, thereby creating complications for corporate accountants and tax auditors. According to the conducted review, a comprehensive study on the consequences of non-compliance with accounting standards in Iran's tax auditing has not been undertaken. Furthermore, prior research has not addressed the role of accounting standards in the tax auditing process in Iran. Therefore, the present study, with an emphasis on Iranian accounting standards, seeks to identify the consequences of disregarding accounting standards in Iran's tax auditing system. The research method employed is descriptive-analytical and falls within the domain of applied research. In descriptive research, the researcher selects a population or sample to describe or explain phenomena, their relationships, and the impact of variables on each other. Applied research is conducted for a specific group, organization, or region. Accordingly, this study adopts a descriptive-analytical method within applied research. A feedforward neural network alongside the bat algorithm is utilized for prediction purposes. The findings indicate a significant inverse relationship between non-compliance with auditing standards and audit quality metrics. This implies that adherence to auditing standards in financial statements by auditors leads to increased qualifications in audit reports, inconsistency and lack of uniformity in audit reporting, reduction in the scope of professional judgment, diminished reliability of audit reports, increased audit completion time, and inconsistency in auditors' responses to identified deficiencies.

This study aims to analyze the long-term effects of export diversification and industrialization on entrepreneurship in selected developing Asian countries with relatively high human development indices. The study employs panel data from 2006 to 2023 and applies FMOLS and DOLS econometric techniques to estimate the long-run effects of globalization variables (export diversification and foreign direct investment), demographic variables (urbanization and labor force), and economic development variables (industrialization and human capital) on entrepreneurship across selected developing countries. The estimation results confirm a significant long-run relationship among all variables. Both FMOLS and DOLS coefficients reveal that export diversification, foreign direct investment, urbanization, labor force, industrialization, and human capital each positively and significantly affect entrepreneurship. Labor force participation and human capital exhibited the strongest elasticities, while export diversification stimulated competitive innovation and the emergence of new businesses. Export diversification and industrialization play a critical role in enhancing entrepreneurship through innovation, employment, and increased access to productive resources and global markets. Policymakers in developing nations are encouraged to prioritize industrial expansion, attract foreign investment, and foster human capital development as essential strategies to stimulate sustainable entrepreneurial growth.

The purpose of this study is to identify the key factors influencing the implementation of service cost systems in the universities under the Ministry of Science, Research, and Technology. This research employed a mixed-methods design. In the qualitative phase, grounded theory was used through semi-structured interviews with 11 experts from academic financial departments. Data were analyzed using open, axial, and selective coding. In the quantitative phase, a researcher-made questionnaire—based on the qualitative codes—was administered to 132 respondents. Structural equation modeling was employed to test the hypotheses. The results revealed that factors such as financial and budgetary system reform, university strategies, organizational management, performance-based budgeting culture, accurate cost segregation, financial controls, cost management, and financial specialization significantly affect cost system implementation. All hypotheses were statistically significant at the 95% confidence level, with positive path coefficients indicating direct effects of these variables on implementation outcomes. Successful implementation of cost-based financial systems in universities requires coherent strategies aligned with performance budgeting, optimized resource allocation, advanced IT infrastructure, financial transparency, and recruitment of skilled personnel. These measures can enhance organizational accountability, increase informational transparency, and improve operational efficiency and effectiveness in public universities.