Title: ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS AND ITS IMPACT ON ENHANCING EARNINGS SUSTAINABILITY: EVIDENCE FROM IRAQI BANKS

Authors: Mustafa Salih Dakhil, Diana Neamah Abdulrazzaq Alkhazraji, Aminah Rasheed Jaber and Bashaer Khudhair Abbas Alkhafaji

Abstract: This study aims to demonstrate the extent to which IFRS adoption contributes to enhancing the sustainability of earnings for a sample of banks listed on the Iraqi Stock Exchange for the duration (2011-2022) before and after accreditation. The sample included (nine) banks and 108 observations, using the dummy variable (1.0) to measure IFRS as an independent variable and the earnings per share model to measure the sustainability of corporate earnings as a subordinate variable, and to test the hypotheses, the SPSS statistical program was used. The results of our research show a correlation and moral impact between the adoption of IFRS and earnings sustainability, which means that companies’ commitment to IFRS implementation in emerging markets is essential to enhance the sustainability of corporate profits by improving profit quality, reducing profit management, enhancing transparency, enhancing investor confidence, and supporting long-term economic growth in those markets compared to pre-accreditation. Researchers recommend that investors and financial analysts pay attention to the quality of accounting profits when making investment decisions and should pay attention to the details of the net profit number and not rely solely on the profit number in aggregate and ensure that it is free of profit management.

Keywords: IFRS, earnings sustainability, profits quality, profits management, financial markets.

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