The Role of Transparency in Accounting Disclosure in Limiting Earnings Management: Evidence from the Iraqi Banking Environment

This study reviews some previous research related to the accounting measurement of transparency in reports and financial statements published in the Iraq Stock Exchange (ISX), and also presents the accounting aspects of earnings management practices in those companies under the various approaches these practices can take that management may resort to for particular purposes that serve its own interests. The researcher also highlights the importance of the role that transparency in reporting and financial statements can play in limiting those practices, which often conflict with the interests of shareholders in particular, and the other beneficiaries and related parties in general. The study analyzed a sample of ten banks listed on the ISX during the period from 2014 to 2023. Data was collected from the ISX's annual reports, and financial and statistical methods were used to analyze the data. Among the findings, the researcher found: a statistically significant negative correlation between transparency in disclosure of ownership structure, investor management, and earnings; a statistically significant negative correlation between transparency in disclosure of financial and non-financial information and earnings management; and a statistically significant negative correlation between transparency in disclosure of information related to the board of directors, its structural approach, and earnings management.