Administrative Fraud and its Impact on Accounting Measurement and its Reflection on the Value of the Bank: Evidence from the Iraqi Market
This study seeks to examine the effects of administrative fraud on accounting measurement, its implications for the value of the sampled banks, and the potential for legalising such fraudulent practices in the accounting measurement process. The study aims to identify suitable solutions to address this issue and analyses the relationship between management fraud in accounting measurement and its impact on the observed decline. Technology plays a crucial role in various aspects of our lives in the modern world. It has the monetary worth of the banks included in the research sample. The worth of the banks and associated dangers were predicted using Tobin's Q model. An applied technique was employed for four banks listed on the Iraq Stock Exchange to accomplish the research objectives and examine the hypotheses. The study period from 2012 to 2021, during which the hypotheses were subjected to statistical testing. The study revealed a limited oversight of bank management in the sampled research, resulting in a lack of effective regulation and minimal coordination between owners and executive managers. This restricted the management's capacity to make critical decisions, particularly in cases where significant shareholders intervened. Consequently, this hindered the bank's ability to optimise resource allocation and impeded future expansion plans, ultimately leading to declining growth opportunities. The potential hazards linked to the decrease in value. The research sample reveals that all banks examined were affected by administrative fraud, as shown by their financial indicators. Specifically, it was observed that before 2014, all banks in the sample consistently valued their assets at their peak market values.
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