The impact of corporate governance on the quality of accounting information and its reflection on the share prices of companies listed on the Iraqi stock exchange

Abstract

The study's overarching goal is to provide light on the connections between corporate governance processes and the financial information provided by company executives. Highlighting the impact of these mechanisms on the reliability of financial reporting and how this influences stock price movements is one of the secondary goals. In order to achieve our goals and address our questions, we relied on the descriptive analytical technique. Additionally, the researcher drafted and sent surveys to the study's participants, who were well-informed individuals with extensive backgrounds in either working for or investing in major companies traded on the Iraqi Stock Exchange. The study's sample size was determined using the random sampling procedure; a total of 168 questionnaires were included in the final count after 180 were sent out and returned. The research concluded, among other things, that "there is a statistically significant effect of corporate governance on corporate prices" after examining the data and evaluating the hypotheses. Stocks, even after accounting data quality is considered as a mediator variable. Corporate governance has an indirect impact on stock prices via its effect on accounting information quality, according to the path analysis. Our research shows that both corporate governance and accounting information quality significantly affect stock prices, with accounting information quality mediating the relationship between the two. Accounting information quality has a statistically noteworthy effect on stock prices. With a big (t) value (6.35), the influence factor (beta) for relative importance is statistically significant with a value of 0.000. Meaning that both relative importance and corporate governance have a direct and statistically significant impact on stock prices and accounting information quality, respectively. A positive and statistically noteworthy effect on accounting information quality is shown by internal governance mechanisms, which have an effect size (beta) of 0.318, a t-value of 5.64, and a p-value of 0.000. There is a positive and statistically substantial outcome of external governance systems, as shown by their impact factor (beta) of 0.397, t value of 6.31, and significance level of 0.000. The beta impact factor (beta) for internal governance procedures is 0.198, the t-value is 2.49, and the significance level is 0.014, all of which point to a positive and statistically significant effect on stock prices. This study is useful in the account systems of many companies, including industrial engineering companies.