The Impact of the Business Strategy on the Level of Accounting Conservatism and Reflection of it on the Company Performance: Empirical Research on a Sample of Iraqi Companies
Keywords:
Business Strategy, Accounting Conservatism, Financial PerformanceAbstract
The study aimed to measure the impact of the business strategy according to the classification of (Miles snow) and to choose the extent of the impact of that reservation and the extent of reflection of it in the company value in the Iraqi environment, and to achieve this goal, the study dealt with a quantitative method for the financial lists of a sample of companies listed in the Iraq Stock Exchange and the number (13) companies divided into different sectors (banks, industrial companies, agricultural companies, investment companies, insurance companies) for the period from 2017 to 2021, and a model (Bentley et al., 2013) was used to measure business strategy (excavating, advocating, analyzing) The intermediate variable was measured accounting conservatism by relying on the (Givoly & Hayn, 2000) model, while financial performance (the dependent variable) was measured based on the (Tobin Q) model. The study found that there are 7 companies that follow the strategy of the defender against 6 companies that follow the strategy of the prospector. It is also noted that the majority of the industrial sector follows the strategy of the defender, while the insurance companies follow the strategy of the prospector, while there is a disparity in companies in the banking and agricultural sectors. It also found that there is a positive relationship Among the variables of the study, the impact of business strategy on the financial performance of the company increases when mediating accounting conservatism.
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