Investigating the Effect of the Income Smoothing Practice on the Ability to Predict Financial Failure: An Analytical Study of a Sample of Banks Listed on the Iraq Stock Exchange

This research aims to determine the effect of measuring income smoothing on the ability to predict the financial failure of banks listed in the Iraq Stock Exchange. The research sample consisted of ten private local commercial banks registered in the Iraq Stock Exchange for the fiscal period from 2016 to 2021. This study used the (Miller, 2009) model to measure smoothing income as an independent variable and the (Z-Sherrod, 1987) model to measure the dependent variable predicting financial failure.
A set of statistical tools and methods, such as arithmetical averages and regression analysis, were utilized with the help of a set of statistical programs (SPSS and Microsoft Excel) to analyze the dataset. The study resulted in a set of purposeful conclusions and recommendations, the most important of which is a positive relationship between the measurement of income smoothing and the ability to predict financial failure.