The role of the quality of accounting information in the efficiency of capital allocation An applied study on a sample of companies listed in the Iraq Stock Exchange

Authors

  • Abdulrasool Salih Mahdi Accounting Department, College of Administration and Economics, University of Duhok (visitor at Accounting Department, Nawroz University), Kurdistan Region, Iraq

DOI:

https://doi.org/10.25007/ajnu.v12n3a1832

Abstract

Accounting information is of particular importance as it is the final product of the accounting system, and this information plays a major role in making various financing and investment decisions, so the research aims to shed light on what accounting information is and its role in capital allocation. In the research, the measures of the quality of accounting information, represented by the continuity of profits, the predictive ability of profits and the quality of financial receivables, have been addressed in the research. For the purpose of achieving the objectives of the research, the descriptive inductive approach was relied on in the theoretical side, while the applied approach was used in the practical side, and accordingly Two hypotheses were developed to test the role of accounting information in the allocation of capital for fifteen companies over a period of five years.
The researcher concluded that there is no common understanding of capital allocation, as well as the lack of experience and skill necessary for the managers of the research sample companies to carry out the capital allocation process.

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References

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Published

2023-08-21

How to Cite

Salih Mahdi, A. (2023). The role of the quality of accounting information in the efficiency of capital allocation An applied study on a sample of companies listed in the Iraq Stock Exchange. Academic Journal of Nawroz University, 12(3), 490–502. https://doi.org/10.25007/ajnu.v12n3a1832

Issue

Vol. 12 No. 3 (2023)

Section

Articles

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