The Impact of Toxic Assets on Financial Performance under the Adoption of International Financial Reporting Standards (IFRS 9): An Empirical Study in Iraqi Banks
Keywords:
Toxic Assets, Financial Performance, International Financial Reporting Standards (IFRS 9)Abstract
The objective of this study is to examine the effects of hazardous assets on financial performance within the framework of implementing International Financial Reporting Standards (IFRS 9) in the Iraqi setting. The present study investigated a representative sample of twelve financial institutions that are publicly traded on the Iraq Stock Exchange, spanning the time frame from 2011 to 2020. The variables of the study were assessed by quantitative measurements, utilizing the statistical software SPSS, and employing a range of statistical techniques. The findings of the study revealed a significant correlation among the three primary variables under investigation, namely toxic or non-performing assets, financial performance, and the implementation of the IFRS 9 standard. Moreover, the researchers also illustrated the adverse influence of toxic assets on financial performance subsequent to the implementation of the IFRS 9 standard. This factor played a role in diminishing the levels of financial performance within the banks included in the sample of the study.
Downloads
References
a. University theses and dissertations.
Ismail, I. H. M. (2019). The Impact of Psychological Capital on the Financial Performance of Local Authorities in the Gaza Strip. Master's Thesis, Al-Azhar University, Faculty of Economics and Administrative Sciences, State of Palestine - Gaza.
Qurdouh, S., & Soumia, B. (2020). Liquidity Management and Its Impact on Financial Performance in Commercial Banks: A Case Study of the Arab Banking Corporation (ABC Bank Jordan) During the Period 2010-2019. Master's Thesis, University of Jijel, Faculty of Economic, Commercial and Management Sciences, Algeria.
Abdulraouf, N., & El Arabi, F. (2020). The Use of Financial Statement Analysis and Its Role in the Financial Performance of Economic Institutions: A Case Study of Sonelgaz Production and Distribution Company in Adrar for the Period (2017-2020). Master's Thesis, Ahmed Draya University, Faculty of Economic, Commercial and Management Sciences, Algeria.
Abu Dalou, M. N. M. (2021). The Impact of Applying the International Financial Reporting Standard (IFRS 9) on the Financial Statements of Jordanian Insurance Companies. Master's Thesis, Middle East University, Faculty of Business, Amman, Jordan.
b. Scientific Journals
Al-Akeeli, I. A. J., & Al-Hajami, S. J. K. (2022). The Role of Toxic Assets in the Decline of Market Value of Iraqi Banking Sector Stocks. Journal of Al-Qut University College for Humanities Sciences, 3(1), 138-151, Republic of Iraq.
Al-Basha, A. S. A., Al-Ani, A. A., & Al-Awad, A. M. A. (2018). Reporting of Toxic Assets and Their Tradability in Financial Markets. Journal of Jiyan University - Erbil Scientific, 2(A), Republic of Iraq.
Onaiza, H. H., & Al-Janabi, A. N. (2019). Measurement and Disclosure of Credit Instruments' Toxic Asset Risks in the Financial Statements of Iraqi Banks. Journal of the College of Education for Girls for Humanities Sciences, 24(2), University of Kufa, Republic of Iraq.
Al-Fadhli, K. Z. A., & Al-Du'aji, F. W. B. M. (2020). The Impact of Non-Financial Disclosures in Integrated Business Reports on Financial Performance: An Exploratory Study in the Libyan Banking Sector. Journal of Financial and Economic Research, Benghazi University, 5, 2663-5410, Libya.
Motawalli, M. M. A. (2022). A Study and Testing of the Impact of Adopting the International Financial Reporting Standard (IFRS 9) and Listing on the Stock Exchange on the Use of Banks in Egypt for Loan Loss Provision in Profit and Capital Management. The Scientific Journal of Financial and Commercial Studies, Damietta University, Faculty of Commerce, 3, 1, 523-575.
Shahin, A. A., & Al-Baghdadi, R. M. (2019). Accounting Measurement of Credit Risks in Light of Basel III Banking Supervision Standards and IFRS 9. The Scientific Journal of Financial and Administrative Studies, 4(2), 109-156.
Al-Haj, H. T. (2022). The Impact of Applying IFRS 9 Financial Reporting Standard on the Financial Performance of Banks: A Case Study of BLOM Bank - Syria. Journal of Damascus University for Economic and Political Sciences, 38(3).
Ahmed, K. M. O. (2022). The Impact of Applying IFRS 9 Financial Instruments Standard on the Non-Conformity of Information and the Liquidity and Credit Risks of Commercial Banks: A Comparative Study. Journal of Accounting Research, 9(2), 718-769.
Al-Saeed, R. A., El-Ghanam, S. H. M., & El-Murr, N. A. M. (2022). The Impact of Applying the International Financial Reporting Standard (IFRS 9) on Improving the Financial Performance of Egyptian Commercial Banks. Journal of Financial and Commercial Research, 21(4).
Hassan, D. K. A. (2019). The Impact of Transitioning to the International Financial Reporting Standard (IFRS 9) on the Informativeness of Financial Statements of Egyptian Commercial Banks: An Empirical Study. Journal of Accounting Research, 6(2), 425-460.
Al-Khlaileh, G. A. S. (2023). The Impact of Measuring Credit Losses According to International Financial Reporting Standard 9 (IFRS 9) on the Quality of Accounting Information in Commercial Banks Operating in Jordan. Journal of Financial and Commercial Research, 4(2), 627-653.
