Open Access Open Access  Restricted Access Subscription Access
Cover Image

Harmonize the pillars of corporate governance to achieve sustainability through earning quality In Iraqi banks Listed in the Iraq Stock Exchange

Fayhaa Yaqoob, Iman Mohammed, Wafaa Hassan


The research aims to build and apply standard models, to measure the harmony of the staff responsible for monitoring and auditing the company's business and results and to give confidence in financial reports by reducing the manipulation of profits and achieve sustainability and to achieve the quality of financial reporting of the company through the quality of its profits.

            Assume that the linkage between the pillars of governance would indicate fewer opportunities to manage the management of profits in light of the activation and coordination of work between the pillars of governance, to reach the goal by testing the research hypotheses on a sample of banks Listed in the Iraq Stock Exchange for the period from 2008 to 2018 and the adoption of statistical method SPSS.

The most important results of the research that the proposed standard models have demonstrated a statistically significant relationship between the pillars of corporate governance through harmony with the sustainability of profits and achieve the earnings quality.


Corporate Governance, Profit Sustainability, Earnings Quality and Banks Listed in Iraq Stock Exchange

Full Text:



Abbott, L. J. and S. Parker. 2000. Auditor selection and audit committee characteristics. Auditing: A Journal of Practice & Theory 19 (Fall): 47-66.

Al-Hamoumi, Saeed Bin Damdah Saeed, (2007) Cleaning of Financial Statements and their Relationship with Administrative Changes and Performance. An Applied Study on Industrial Companies Listed in Amman Stock Exchange, Unpublished Ph.D. Thesis, Faculty of Banking and Finance, Arab Academy for Banking and Financial Sciences.

Ayinde, I (2002). Audit committee: History and Evolution. Presented at a National Seminar on Enhancing audit committee effectiveness, organized by ICAN, Lagos.

Baxter, P & Cotter, J (2009). Audit committees and earnings quality Accounting and Finance, (49), 267–290.

Becker, C.L., DeFond, M.L., Jiambalvo, J., & Subramanyam, K.R. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research. Vol: 15. No: 1. pp. 1-24.

Bradbury , Michael E., Yuen Teen Mak, and S.M. Tan. 2004. Board characteristics, audit committee characteristics and abnormal accruals.

Bradbury, M. E., Mak, Y. T. & Tan, S. M. (2004). Board characteristics, audit committee characteristics and abnormal accruals. Available at SSRN: Accessed September 28, 2007.

Bronson, S., Carcello, J., Hollingsworth, C.,& Neal, T (2009). Are fully independent audit committees really necessary? Journal of Accounting and Public Policy, (28), 265–280.

Bryan, Daniel M., Carol Liu, and Samuel L. Tiras. 2004. The influence of independent and effective audit committees on earnings quality.

Cadbury Report. (1992). Report of the Committee on the Financial Aspects of Corporate Governance. London: Gee.

Carcello, J. V., & Neal, T. L. (2003). Audit Committee characteristics and Auditor dismissal following ‘‘New’’ going- Concern Reports. The Accounting Review, 78(1), 95–117.

Choi, T., & Pae, J. (2011). Business Ethics and Financial Reporting Quality: Evidence from Korea. Journal of Business Ethics, (10551-011-0871-4).

Cohen, J., G. Krishnamoorthy, and A. Wright. 2002. Corporate governance and the audit process. Contemporary Accounting Research (Winter): 573-594.

Collier, P. and A. Gregory: 1999, ‘‘Audit Committee Activity and Agency Costs’’, Journal of Accounting and Public Policy 18: 311–332.

Committee Oversight’’,Journal of Managerial Issues 10(2): 129–151.

Cooper, B. J., & Craig, J. R. (1984). A profile of internal audit in Australia. Royal Melbourne Institute of Technology, 3.

Cooper, B. J., Leung, P. & Chau, G. (1989). A survey of internal auditing in Hong Kong. Hong Kong Polytechnic, 4.

Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting earnings management. The Accounting Review 70 , 193–225.

DeZoort, F. T., Hermanson, D. R., Archambeault, D. S., & Reed, S. A. (2002). Audit committee effectiveness: A synthesis of the empirical audit committee literature. Journal of Accounting Literature, 21, 38–75.

Goodwin, J. (2003). The relationship between the audit committee and the internal audit function: Evidence from Australia and New Zealand. International Journal of Auditing, 7, 26 3–278.

Gramling, A. A., Maletta, M. J., Schneider, A., & Church, B. K. (2004). The role of the internal audit function in corporate governance: A synthesis of the extant internal auditing literature and directions for future research. Journal of Accounting Literature, 23, 194–244.

Hamedat, Mohammed Mahmoud Ahmed, (2013), Deducing Users of Financial Information to Profit Management Practices through Financial and Accounting Performance Measures, Ownership Structure, An Empirical Study on Industrial Stock Companies Listed in Amman Stock Exchange, Unpublished PhD Thesis, Accounting Department, Faculty of Graduate Studies, International Islamic Science University, Amman, Jordan.

Healy, P. And J. Wahlen, (1999). "A Review of The Earnings Management Literature And Its Implications For Standard Setting". Accounting Horizons,(December), Vol, 13. No, 4. pp,365-383.

Hermanson , Dana R.( Kennesaw State University) & Rittenberg ,Larry E,University of Wisconsin-Madison, “Internal Audit and Organizational Governance “The Institute of Internal Auditors Research Foundationو Copyright © 2003 by The Institute of Internal Auditors, 247 Maitland Avenue, Altamonte Springs, Florida 32701-4201.

James, K. L. (2003). The effects of internal audit structure on perceived financial statement fraud prevention. Accounting Horizons, 17(4), 315–327.

Jensen. M.C. and W.H. Meckling, 1976, Can the corporation survive? Center for Research in Government Policy and Business Working Paper no. PPS 76-4 (University of Rochester, Rochester, NY).

Kalbers, L.P. and T.J. Fogarty: 1998, ‘‘Organizational and Economic Explanations of Audit

Klein, A. (2002a). Economic determinants of audit committee independence. Accounting Review, 77, 35–52.

Klein, A. (2002b). Audit committee, board of director characteristic, and earnings management. Journal of Accounting and Economics, 33, 375–400.

Knapp, M.C (1991). Factors that audit committee members use as surrogates for audit quality. Auditing: A Journal of Practice & Theory. 10, 35–52.

KPMG, Corporate Governance in Europe (KPMG, 2001/2002).

Krishnan, G.V. (2003). Audit Quality and The Pricing of Discretionary Accruals. Auditing: A Journal of Practice & Theory. Vol: 22. No: 1. pp. 109-126.

Lightle, S., & Bushong, G. J. (2000). The role of internal audit in the effort to improve audit committee effectiveness. Ohio CPA Journal, 59(4), 24–35.

Majiyebo, Onyabe Joseph; Okpanachi, Joshua; Nyor, Terzengwe; Yahaya, Onipe Adabenege ; Mohammed, Ahmed ; Audit Committee Independence, Size and Financial Reporting Quality of Listed Deposit Money Banks In Nigeria, Journal of Business and Management. Volume 20, Issue 2. Ver. IV (February. 2018), PP40-47.

McMullen, D. A. and Raghunandan, K. (1996). Enhancing audit committee effectiveness. Journal of Accountancy, 79-81.

Millstein, Abram, 2003, “The Role of Boards and Shareholders in Corporate Governance,” 21st Century Corporate Governance Book, Center for International Private Enterprise, Washington, DC, 3rd Edition.

NACD, National Association of Corporate Directors, Report of the NACD, and Blue Ribbon Commission on Audit Committees: A Practical Guide, Washington, DC: NACD, 2000a.

Nnadi, G.A (1999). Making audit committees effective. ICAN News, October/November, 6-9

O‟Sullivan, N (2005). Why do executives serve as non-executives? Pre-Cadbury evidence from UK non-financial companies. Accounting and Business Research. 35, 161-176.

Pucheta-Martı´nez, M. C., & De Fuentes, C. (2007). The impact of audit committee characteristics on the enhancement of the quality of financial reporting: An empirical study in the Spanish Context. Corporate Governance: An International Review, 15(6), 1394–1412.

Raghunandan, K., Read, W. J. & Rama, D. V. (2001). Audit committee composition, ‘‘Gray directors,’’ and interaction with internal auditing. Accounting Horizons, 15(2), 105–118.

Rezaee, Z. & Lander, G. H. (1993). The internal auditor’s relationship with the audit committee. Managerial Auditing Journal, 8(3).

Rittenberg, L. E., & Fair, R. D. (1993). Improving the effectiveness of Audit Committees. Montvale, NJ: Institute of Management Accountants.

Scarbrough, D. P., Rama, D. V. & Raghunandan, K. (1998). Audit committee composition and interaction with internal auditing: Canadian evidence. Accounting Horizons, 12(1), 51–62.

Schipper, K., Vincent, L., 2003. Earnings quality. Account. Horizons 17 (Suppl.), 97–110.

Solomon, Mohamed Mustafa, “Corporate Governance and the Role of Board Members and Executives”, University House, Egypt, 2008

Tone at the Top, New Governance Rules Require Internal Auditing, Published By the Institute of Internal Auditors, Issue 21, Feb, 2004.

Vafeas, N. Audit Committee, Boards and the Quality of Reported Earnings. Contemporary Accounting Research 22, 4 (Winter 2005) : 1093-1121.

Williamson, Q. E, 1999, The Mechanism of Governance, Oxford University press,.

Xu, H., Nord, J., Brown, N. and Nord, G. 2003. Data quality issues in implementing an ERP. IEEE transactions on knowledge and data engineering, 1021(1):47-58.

Yang, J. S., & Krishnan, J. (2005). Audit committees and quarterly earnings management. International Journal of Auditing, 9, 201–219.

Yaqoob, Fayhaa Abdullah, 2006, Internal Audit and its role in corporate control, Ph.D. thesis in accounting, unpublished, submitted to the Faculty of Management and Economics, Mustansiriya University.

Yaqoob, fayhaa Abdullah, 2019, Journal of accounting and financial studies(JAFS), Iss.46 Vol. 14, 42-56.

Zaman, M., Hudaib, M., &Haniffa, R. (2011). Corporate governance quality, audit fees and non-audit services fees. Journal of Business Finance and Accounting, (38), 165 – 197.


  • There are currently no refbacks.