International Journal of Finance & Banking Studies

This study examines the influence of liquidity on the profitability of Iraqi commercial banks. Five banks based in Iraq namely: North bank, Iraqi Islamic bank, Sumer bank, Dar Es-Salam bank and Babylon bank randomly selected and analyzed for the current study over the period 2005 to 2013. Moreover,  annual reports of these banks have studied and the main ratios of profitability and liquidity were calculated. These reports are available at Iraqi Stock Exchange site. The variables that were identified as independent for liquidity were, loan deposit ratio, deposit asset ratio and cash deposit ratio, while return on assets as dependent variable for profitability. The Ordinary Least Square (OLS) model used to examine the impact of liquidity on profitability. The study observes that any increase in liquidity ratios as above mentioned will lead return on asset to increase as well. Depending on this study it could be better for Iraqi banks to keep a balance between liquidity and profitability.

The current research aims to examine the accounting of digital assets by linking accounting measurement theory to financial disclosure requirements, in light of the challenges related to the absence of specialized international accounting standards for digital assets. The research was divided into two parts: theoretical and applied. The theoretical part included a review of the literature related to accounting measurement (historical cost, fair value, and impairment model) and financial disclosure requirements according to International Financial Reporting Standards (IAS/IFRS) and American standards (FASB, AICPA, and SEC). The applied part used a questionnaire and administered to a sample of financial report users, including academics and professionals, to obtain their opinions on the adequacy of current measurement models, financial disclosure requirements, and shortcomings in international standards. It also explored the possibility of formulating an integrated framework for measuring and disclosing digital assets. The results of the analysis of the questionnaire showed that fair value measurement is more appropriate for the nature of digital assets than traditional models, with the need to enhance disclosure of risks associated with price volatility, liquidity, and operational risks. It also showed that the absence of a specific accounting standard for digital assets leads to poor comparability and increased variation in accounting practices across economic entities. Based on the survey results, an integrated theoretical framework for accounting for digital assets was proposed. This framework includes principles of recognition, measurement, and disclosure, and contributes to achieving the objectives of financial reporting in accordance with the International Accounting Standards Board (IASB) conceptual framework, ensuring relevance, accurate representation, comparability, clarity, and timeliness. The study concluded that developing a specialized accounting framework for digital assets represents a strategic necessity to ensure the reliability and transparency of financial reporting and enhance user confidence, given the rapid growth in the adoption of digital assets within global economic activities.  

This paper observes the impact of working capital management on profitability of industrial sector in Iraq. Four companies based in Iraq namely: Iraqi Date processing, Iraqi carton manufactories, Baghdad soft drinks and Iraqi for tufted carpets randomly selected and analyzed for the present study over the period 2007 to 2016.  Annual reports of these companies have been studied and significant ratios calculated. The variables that were identified as independent for working capital were, current ratio and quick ratio, while return on equity ROE as dependent variable for profitability. The Ordinary Least Square (OLS) model used to examine the impact of working capital management on profitability. Results indicate that ROE is positively related with working capital variables.

The purpose of this article to identify the hidden economy and money laundering operations and expose the backgrounds, social and banking them, and clarify the relationship between them. Also clarifying the position of the banking system from money laundering practices through the procedures followed, Furthermore to address the size of this issue and the methods used in laundering the money, since money laundering is a phenomena that all world states suffer from because of its negative impacts on social, economic and political aspects in any state. The spread of such phenomena can be attributed to various reasons that may be subjective of procedural, among them the fail of national legislation or the absence of cooperation between the concerned. Due to the impact of such phenomena international, regional and local efforts were exerted to fight this phenomena through international agreements, Purpose to achieve the objectives of the research has been formulated a main hypothesis as follows: The procedures followed and the laws in force in the field of money laundering are still limited to reviewing this phenomenon and besieging and addressing it. The study will employ the analytical method to test its hypotheses. It will be divided into three chapters in its theoretical and practical aspects, money laundering operations and ways of confronting them through the banking system. The first chapter deals with the theoretical framework of the study, which includes three subjects. Money laundering, the second chapter includes the role of the banking system in the face of money laundering, and the third was devoted to presenting the practical side of the role of the banking system in the face of money laundering. The practical side has collected the required liabilities from within the banking system in the province. Finally, conclusions and proposals for the study were reached. It concoded to us Money laundering is an integral part of the hidden economy and appears in the illegal part of it, as it hides the sources of illicit funds and turns them into legitimate sources. And the hidden economy, and without these operations, money would not be able to return to the apparent economy.

This research aims to demonstrate the role of financial statements (balance sheet) in reporting the risks faced by government units and the extent of the risks within these units, in addition to demonstrating the steps through which risks can be managed in these units, whether they are governmental or private economic units. Financial risks are one of the problems facing economic units, whether private or governmental. In turn, decision-makers, both internal and external, work to measure the financial risks facing these units. Therefore, the research problem is as follows, Do financial position statement contribute to reporting financial risks in governmental units (Baghdad Municipality)? In order to achieve the research objectives, the financial position statement of the Baghdad Municipality Department (a government unit) was used, and a set of indicators was used to reach a judgment on the presence or absence of risks, as well as the level of risks facing this unit. It was found that there is a possibility of knowing the risks through the financial position statement, in addition to discovering that the level of risks facing this unit (Baghdad Municipality) is considered high.    

The study's overarching goal is to confirm the reality of internal control system in the Iraqi General Tax Authority's is compatible with the most recent version of the COSO-framework and to measure the impact of adopting its components as evaluation criteria on tax revenues. By surveying a sample of senior and middle management members within the General Tax Authority, the researcher designed a questionnaire containing (93) questions as a means of measuring the study's two variables, the internal control system as the independent factor, with tax revenues serving as the dependent variable, and assessed according to the standards and guidelines of the COSO-framework.  A five-part matrix including "control environment", "risk assessment", "control activities", "information & communication", and "monitoring" formed the basis of the study. The entity under examination had an average level of application of the COSO-framework's internal control elements, according to the study results. Furthermore, it only showed a statistically substantial impact on the control activities and control environment components of the framework, while the remaining components had no significant effect. This may indicate the possibility of functional overlap between them, and that their effect does not appear independently except in actual integration with the rest of the framework components, which is consistent with the integrative nature of the COSO framework. The results also indicate deficiencies in the implementation of some internal control elements, which negatively impacted tax revenues. The study concluded that the Tax Administration must restructure its internal control system by adopting international control frameworks, most notably the COSO-framework. It highlights the importance of issuing formal legislation that imposes on the government sector the necessity of adopting an integrated internal control system that serves as a guide for government units to guarantee the efficacy and efficiency of governance control.      

The current research aims to examine the accounting of digital assets by linking accounting measurement theory to financial disclosure requirements, in light of the challenges related to the absence of specialized international accounting standards for digital assets. The research was divided into two parts: theoretical and applied. The theoretical part included a review of the literature related to accounting measurement (historical cost, fair value, and impairment model) and financial disclosure requirements according to International Financial Reporting Standards (IAS/IFRS) and American standards (FASB, AICPA, and SEC). The applied part used a questionnaire and administered to a sample of financial report users, including academics and professionals, to obtain their opinions on the adequacy of current measurement models, financial disclosure requirements, and shortcomings in international standards. It also explored the possibility of formulating an integrated framework for measuring and disclosing digital assets. The results of the analysis of the questionnaire showed that fair value measurement is more appropriate for the nature of digital assets than traditional models, with the need to enhance disclosure of risks associated with price volatility, liquidity, and operational risks. It also showed that the absence of a specific accounting standard for digital assets leads to poor comparability and increased variation in accounting practices across economic entities. Based on the survey results, an integrated theoretical framework for accounting for digital assets was proposed. This framework includes principles of recognition, measurement, and disclosure, and contributes to achieving the objectives of financial reporting in accordance with the International Accounting Standards Board (IASB) conceptual framework, ensuring relevance, accurate representation, comparability, clarity, and timeliness. The study concluded that developing a specialized accounting framework for digital assets represents a strategic necessity to ensure the reliability and transparency of financial reporting and enhance user confidence, given the rapid growth in the adoption of digital assets within global economic activities.  

This research aims to demonstrate the role of financial statements (balance sheet) in reporting the risks faced by government units and the extent of the risks within these units, in addition to demonstrating the steps through which risks can be managed in these units, whether they are governmental or private economic units. Financial risks are one of the problems facing economic units, whether private or governmental. In turn, decision-makers, both internal and external, work to measure the financial risks facing these units. Therefore, the research problem is as follows, Do financial position statement contribute to reporting financial risks in governmental units (Baghdad Municipality)? In order to achieve the research objectives, the financial position statement of the Baghdad Municipality Department (a government unit) was used, and a set of indicators was used to reach a judgment on the presence or absence of risks, as well as the level of risks facing this unit. It was found that there is a possibility of knowing the risks through the financial position statement, in addition to discovering that the level of risks facing this unit (Baghdad Municipality) is considered high.    

This paper portrays the literature on voluntary corporate disclosure via social media networks over the course of two decades (2002-2022) through a content analysis framework. Focusing on papers in English, Turkish and Arabic, it reviews a total of 65 studies from 15 countries, based on number of posts, type of information disclosure, time span and social media platforms used. Additionally, it provides a detailed break-down of the reported effect between voluntary disclosures on social media and a total of 37 different variables used to proxy for market, accounting, corporate governance and firm-specific (size, age and risk) measures. Drawing from an exhaustive analysis encompassing more than 51 thousand companies and nearly 70 million social media posts, the prevailing body of knowledge pertaining to corporate disclosures via social media predominantly hinges upon empirical evidence based on the United States and the United Kingdom. We feel that more country comparison studies and multi-lingual samples as well as meta-analyses could significantly improve our understanding of this field.  

The purpose of this article to identify the hidden economy and money laundering operations and expose the backgrounds, social and banking them, and clarify the relationship between them. Also clarifying the position of the banking system from money laundering practices through the procedures followed, Furthermore to address the size of this issue and the methods used in laundering the money, since money laundering is a phenomena that all world states suffer from because of its negative impacts on social, economic and political aspects in any state. The spread of such phenomena can be attributed to various reasons that may be subjective of procedural, among them the fail of national legislation or the absence of cooperation between the concerned. Due to the impact of such phenomena international, regional and local efforts were exerted to fight this phenomena through international agreements, Purpose to achieve the objectives of the research has been formulated a main hypothesis as follows: The procedures followed and the laws in force in the field of money laundering are still limited to reviewing this phenomenon and besieging and addressing it. The study will employ the analytical method to test its hypotheses. It will be divided into three chapters in its theoretical and practical aspects, money laundering operations and ways of confronting them through the banking system. The first chapter deals with the theoretical framework of the study, which includes three subjects. Money laundering, the second chapter includes the role of the banking system in the face of money laundering, and the third was devoted to presenting the practical side of the role of the banking system in the face of money laundering. The practical side has collected the required liabilities from within the banking system in the province. Finally, conclusions and proposals for the study were reached. It concoded to us Money laundering is an integral part of the hidden economy and appears in the illegal part of it, as it hides the sources of illicit funds and turns them into legitimate sources. And the hidden economy, and without these operations, money would not be able to return to the apparent economy.