MEASURING THE PERSISTENCE OF ACCOUNTING EARNINGS IN THE BANKING SECTOR: EVIDENCE FROM IRAQ

Abstract

The research aims to measure the Persistence of accounting Earnings in the Iraqi banking sector, by studying a sample of 10 banks for the period (2016-2019) using the (Boonlert et al., 2006) model. The study found a noticeable discrepancy in the Persistence of Earnings; Some banks are characterized by high Persistence, while others suffer from a lack of Persistence. This discrepancy is attributed to the environmental challenges facing the banking sector in Iraq.The study showed that banks that adopt advanced accounting policies and high-quality financial standards achieve higher stability in Earnings. It recommended the need to study factors such as governance, internal and external control, and earnings management to address the high volatility in the financial performance of some banks. It also stressed the importance of adopting unified accounting standards to enhance financial stability and reduce variation in Earnings.