The Impact Of Capital Adequacy On Profit Management For Banks Listed On The Iraq Stock Exchange

This paper aims to analyze and measure the impact of capital adequacy ratios on profit management, as capital adequacy ratios are a "preventive line" that protects the bank from the risks of losing business inside and outside the bank's balance sheet, as some banks resort to the practice of profit management through the intended intervention in the process of accounting disclosure to influence the announced accounting data and to choose between alternative accounting methods and policies, using gaps in audit methodologies or the freedom and flexibility of accounting principles and standards, based on management objectives. In order to achieve these goals, this work relied on a set of financial ratios for the capital adequacy index and the (Modified Jones) model for measuring profit management. In addition to, several standard models and statistical analysis methods compatible with the nature of the study have been utilized to estimate regression equations. The research community represents the commercial banks listed in the Iraq Stock Exchange, and (10) banks represented the research sample out of (40) commercial banks listed in the Iraqi Stock Exchange in line with the research variables and for the period (2004-2020) and using annual data.