The College of Administration and Economics at the University of Baghdad discussed, a PhD dissertation in field of accounting by the student (Tariq Hatim Rahi ) and tagged with (The Role of Internal Mechanisms of Governance and Accounting Conservatism in Predicting the Financial Performance of Iraqi Economic units – a Proposed Model ) , Under supervision of (Prof. Dr. Abbas Hamid Yahya )
In most of the research conducted in the field of predicting the financial performance of economic units, they dealt with failure or financial bankruptcy or compared the prediction power of models, and financial ratios and the size of the economic unit are used for this purpose, and the main objective of this research is to verify the effectiveness of internal corporate governance mechanisms Conservation helps to improve the ability of the model to predict the financial performance of economic units. The statistical community for the current research was chosen from (141) economic units listed in the Iraq Stock Exchange, and (55) economic units were selected from various sectors in this market, and those who met the conditions for testing the research hypotheses, and the financial statements of these units were based on the period from 2017 -2019.
In this research, a conceptual presentation of corporate governance, accounting conservatism, and financial performance was presented and analyzed for the most prominent financial ratios used to predict the financial performance of the economic unit. The financial performance of the economic unit is commensurate with the Iraqi economic environment through the research sample, by examining 21 financial ratios, and 3 internal governance mechanisms (board size, ownership concentration, institutional investment ratio), as well as accounting conservatism, and using multiple discriminatory analysis to make a difference between Good and weak economic units, in other words, this research searches for an answer to the question whether the variables of corporate governance and accounting conservatism can improve the accuracy of the model prediction or not?
It turns out that the difference in the performance of the economic units is a result of the different ownership structures, and that the concentration of ownership acts as an important governance mechanism and has a positive impact on the performance of the economic units. The Iraqi economic economy, and there was an effect of the size of the board of directors in improving the accuracy of the forecasting model of the financial performance of these units, and the concentration of ownership and the percentage of institutional investment have an influential role in improving the accuracy of the forecasting model of financial performance. The effect of improving the accuracy of the financial performance forecasting model for the Iraqi economic unit. And by comparing the results of prediction models according to the results of the CCR classification and the ROC test for the years 2018-2019, it was found that the coefficients of the model consisting of all variables for the year 2019 are the best and can be used as a model to predict the financial performance of Iraqi economic units.