Determining the impact of the estimated receivables from the income management entrance in the capital investment decision-making

Authors

  • Sarmad K. Jameel Department of Banking and Finance, College of Administration and Economics, University of Mosul, Iraq
  • Basam A. Abdullah Department of Accounting, University of Duhok (Visitor at Nawroz University), Kurdistan Region of Iraq

DOI:

https://doi.org/10.25007/ajnu.v10n3a1242

Abstract

The study focused on testing the relationship between the capital investment decisions of companies and the future returns by introducing returns management models, based on the point of view that emphasizes the necessity of adopting capital investment decisions on the quality of investment rather than the amount of investment. Returns of a sample of industrial joint stock companies listed in the Iraqi Stock Exchange for the period 2009-2017 using quarterly data, and the research indicated that the existence of returns management practices does not affect the capital investment decisions taken by the management, given that it possesses accurate and complete information about the profitability of their companies compared to other parties. dealing with the company, due to the existence of informational asymmetry between the various parties dealing with the company, and the management’s possession of high-quality information compared to other parties that rely on financial analysis or on the company’s declared returns, and the study concluded that there is no reliance on discretionary receivables to predict future returns, i.e. no Absolutely reliable in taking s In their investment choices, return management practices may be of an informational nature in that managers use their wisdom and know-how to provide investors with the information they possess from their future point of view.

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Published

2021-08-31

How to Cite

K. Jameel, S., & A. Abdullah, B. (2021). Determining the impact of the estimated receivables from the income management entrance in the capital investment decision-making. Academic Journal of Nawroz University, 10(3), 415–429. https://doi.org/10.25007/ajnu.v10n3a1242

Issue

Vol. 10 No. 3 (2021)

Section

Articles

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