The Impact of Toxic Assets on Financial Performance under the Adoption of International Financial Reporting Standards (IFRS 9): An Empirical Study in Iraqi Banks

The objective of this study is to examine the effects of hazardous assets on financial performance within the framework of implementing International Financial Reporting Standards (IFRS 9) in the Iraqi setting. The present study investigated a representative sample of twelve financial institutions that are publicly traded on the Iraq Stock Exchange, spanning the time frame from 2011 to 2020. The variables of the study were assessed by quantitative measurements, utilizing the statistical software SPSS, and employing a range of statistical techniques. The findings of the study revealed a significant correlation among the three primary variables under investigation, namely toxic or non-performing assets, financial performance, and the implementation of the IFRS 9 standard. Moreover, the researchers also illustrated the adverse influence of toxic assets on financial performance subsequent to the implementation of the IFRS 9 standard. This factor played a role in diminishing the levels of financial performance within the banks included in the sample of the study.