The use of Iraqi banks to provision for loan losses in the income smoothing process: A field study of a sample of Iraqi banks
الباحث الأول:
Asst. lecturer
Ali Hussein Hadi Onaiza
الباحثين الآخرين:
Prof. Dr
Hussein Hadi Onaiza
المجلة:
مجلة واسط للعلوم الانسانية المجلد 14 العدد 41
تاريخ النشر:
None
مختصر البحث:
Abstract:
Companies resort for income to give a better financial position, and occupy the subject of the concept and legality of income smoothing is a much debated topic in the field of accounting. It is carried out to suit the requirements of a co…
Abstract:
Companies resort for income to give a better financial position, and occupy the subject of the concept and legality of income smoothing is a much debated topic in the field of accounting. It is carried out to suit the requirements of a company when it is to declare its financial results. There are many tools used by companies to smooth income, and loans loss provision is one of them. Since it does not involve any cash outflow, companies find it a very potential tool for smoothing. This paper makes an attempt to study this bank's management behavior in Iraq. It finds that Iraqi banks too involve in smoothing necessitated by regulatory requirements (practical), stock prices, and most important of all, is persistent performance. The smoothing behavior of government sector banks is quite different from that of the private sector banks. It is found that the capital adequate ratio in some of government sector banks are less than in private sector banks, and the loan loss provision in public sector banks are higher than in its counterparts in the private sector. In the study, the pooled regression is found to be a better model than the fixed-effect model (F Pooled > Fixed Effect) for analysis
