The Role of the External Audit in Assessing Continuity of Companies under the Financial Crisis: An Applied Study in the Iraqi Banks Listed in the Iraq Stock Exchange for the Period 2016-2019

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Sallama Ibrahim Ali ◽  
Hakeem Hammood Flayyih
Keyword(s):  
Financial Crisis ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Early Stage ◽  
International Standards ◽  
Financial Ratios ◽  
External Audit ◽  
Energy Company ◽  
Wide Range

In the first decade of the third millennium, shareholding companies faced several crises, with four major crises affecting financial markets, beginning with the collapses of a group of large companies following the Enron Energy company and similar companies in various countries, followed by the financial crisis and the collapse of global oil prices, which quickly ended until the sta As a result, the purpose of this study is to shed light on the role of external audit in assessing bank continuity, as Iraqi banks are among the first institutions and companies to move toward the application of international standards as well as being committed to accounting principles and assumptions, and they face a wide range of risks, the most dangerous of which is financial instability. Furthermore, the Kida model has been adopted in assessing the stability of banks and their ability to meet their obligations and perform their duties through a set of financial ratios that distinguish successful banks from those whose ability is suspect and vulnerable to financial failure, as well as trying to identify the nature of their activities at an early stage. However, using financial ratios, Kida's model was applied to a sample of three Iraqi banks, and the research concluded that the external auditor should use financial analysis models to know and evaluate the banks' continuity in terms of anticipating financial collapse.

scholarly journals The Role of Financial Analysis in Assessing the Prices of Shares of Jordanian Industrial Joint Stock Companies Listed on the Amman Stock Exchange

2019 ◽  
Vol 11 (6) ◽  
pp. 120
Author(s):  
Bahaa Sobhi AbdeLatif Awwad ◽  
Ammar Zakaria Abdallh Salem
Keyword(s):  
Market Share ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Share Price ◽  
Financial Ratios ◽  
Working Capital ◽  
Financial Leverage ◽  
Amman Stock Exchange

This study aimed to highlight the role of financial ratios in evaluating the prices of shares of Jordanian industrial joint stock companies listed on the Amman Stock Exchange; it also aimed to show which of these ratios has a more influential impact on these prices. The researcher conducted a test study survey to analyze the published data of (73) Jordanian industrial joint stock companies. The study sample (n= 18) formed about (25%) of the total population of the companies listed on the Amman Stock Exchange during the period 2010-2017. The researcher used the multiple regression method to identify the correlations between the financial ratios and the market share prices of the Jordanian industrial joint-stock companies. The results of the study showed a statistically significant effect for the Ratio of Circulation (CR), the Quick Ratio (QR), the Profit Per Share (EPS), the Return on Equity (ROE), the Debt Ratio (DR), the Total Assets Turnover (TAT), the Price- to- Earnings Ratio (PER), and the Price- to- Book Value Ratio (PBVR) on the market share price of the Jordanian industrial joint stock companies. However, the study showed no statistically significant effect of the Degree of Financial Leverage (DOL) and the rate of Working Capital Turnover (WCT) on the prices of these companies. In light of the study findings, the researcher recommended that all investors in the Amman Stock Exchange must have the know-how of the financial analysis, and to benefit from the expertise and knowledge of specialists in the financial analysis in order to rationalize their investment decisions and eventually take the best, decisive investment decisions. Companies should also consider the importance of financial leverage ratios and working capital turnover that may be reflected on the value/prices of their shares.

An IFRS 1 Application Role in the Relevant of Accounting Information from the Users of Financial Statements Prospective: An Applied and Analytical Study at Asia Cell Communications Company

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Shahlaa Kamel Abdulhassan ◽  
Salama Ibrahim Ali
Keyword(s):  
Analytical Study ◽  
Stock Exchange ◽  
Accounting Information ◽  
Financial Statements ◽  
Transformation Process ◽  
International Standards ◽  
Adoption Process ◽  
Future Expectations ◽  
Suitable Concept

The research aims to study the requirements of a IFRS (1) standard and the statement of a suitable concept and its importance for users of financial statements and the role of applying of IFRS (1) standard also aims to test the ability of applying the standard requirements in companies listed on the Iraqi Stock Exchange, and the relevant of the accounting information for the users of those companies in light of applying those standards. The research reached a set of conclusions, the most important of which was that of the standard, the application of the IFRS (1) standard requirements, describe the transformation process to IFRSs as a transformational stage, as the stage involves adopting the economic unit of standards  on a set of procedures, methods and accounting treatments that unit should perform for the purpose of preparing financial statements in accordance with international standards and optional and compulsory exceptions that it facilitates the adoption process, in addition, the reports and financial statements aim to provide useful and appropriate accounting information that meets the needs of its users, as the property of predictive value in accounting information improve the ability of companies to predict the results of future expectations, the property of value assurance in accounting information provides the ability to change or correct current or future expectations, and it reduces the degree of uncertainty when it has feedback.

Modern Downsizing

2021 ◽  
pp. 1970-1983
Author(s):  
Grzegorz Wojtkowiak
Keyword(s):  
Financial Analysis ◽  
Management Tool ◽  
Future Research ◽  
Research Directions ◽  
Good Practices ◽  
Strategic Option ◽  
Wide Range ◽  
Future Research Directions ◽  
Points Of View

The aim of the chapter is to present the concept of downsizing from different points of view: as a strategic option, as a management tool and as a phenomenon. It describes the evolution of the term, its definitions, and different directions of development. A scale and possible outcomes are described on the basis of financial analysis; however it also discusses the role of non-financial aspects. The chapter points out reasons, aims and a wide range of tools that may be used during implementation of downsizing. One of the conclusions of the chapter is to present future research directions aiming at increasing knowledge of managers and providing them with detailed good practices.

scholarly journals The Relative Importance of Financial Ratios in Making Investment and Credit Decisions in Jordan

2021 ◽  
Vol 12 (2) ◽  
pp. 284
Author(s):  
Mohammad Ahmad Alqam ◽  
Haitham Yousef Ali ◽  
Yaser Mohd Hamshari
Keyword(s):  
Scientific Literature ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Study Data ◽  
Decision Makers ◽  
Financial Ratios ◽  
Relative Importance ◽  
Amman Stock Exchange ◽  
Second Category ◽  
Industry Area

This study has aimed to demonstrate the relative importance of financial analysis using ratios for each of lenders and investors in Jordan when making decision.Also; this study, included the financial ratios that could be adopted by decision makers in the industry (area) of lending or investment. The study included two categories; first is the category of financial intermediaries; to express the category of investors in Amman stock exchange (ASE), while the second category included employees of credit departments -in Jordanian banks- for the category of lenders.The collection of study data was based on a review of the subject's scientific literature, previous studies and by preparing a questionnaire that was designed on the basis of the theoretical framework of the study and its hypotheses.The objectives of financial analysis are to judge the efficiency of management and to use the information available to make various administrative decisions. The study found that financial ratios are used by data users when making decisions related to investment and lending. The results of the study also revealed the interest of lenders in debt and liquidity ratios, while investors' attention is focused on profitability and market ratios.

scholarly journals Financial crisis and corporate governance: The role of internal audit in the Greek context

2019 ◽  
Vol 15 (2) ◽  
pp. 45-55
Author(s):  
Andreas Koutoupis ◽  
Michail Pazarskis ◽  
Grigorios Lazos ◽  
Ioannis Ploumpis
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Audit Committee ◽  
Stock Exchange ◽  
Internal Audit ◽  
Listed Companies ◽  
Athens Stock Exchange ◽  
Total Turnover ◽  
The Relationship

In this paper, our purpose is to examine the relationship between the role of Internal Audit (IA), Corporate Governance (CG) and the Audit Committee (AC) in the recent financial crisis in Greece and to investigate the contribution of IA to CG structures as well as its possible, the IA’s role during the financial crisis in Greece. Moreover, little research has been conducted based on the relationship between corporate governance and internal audit during the financial crisis in case of Greece. For this reason, we conducted a survey, using questionnaires, which were sent to the listed companies of the Athens Stock Market. Out of a total of 192 listed companies on the Athens Stock Exchange, the relevant questionnaires were sent to 100 companies. Those companies were selected firstly based on their total turnover and secondly due to the availability of information from company websites such as employees’ numbers and Internal Audit Department Structures. Our conclusion was that Internal Audit adds value to the organization and it can also help the senior management towards the accomplishment of the organizational goals.

scholarly journals The Significance of Financial Analysis Methods in the Rationalization of Investment Decisions in Stock Market – The Case of Khartoum Stock Exchange, During the Period from 2014  to 2018 –: أهمية استخدام أساليب التحليل المالي في ترشيد قرارات الاستثمار في سوق الأوراق المالية – دراسة حالة سوق الخرطوم للأوراق المالية خلال الفترة 2014 - 2018 –

2020 ◽  
Vol 4 (10) ◽  
Author(s):  
Mustafa Mohammed Zain, Asim Hassan Mohammed
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Financial Statements ◽  
Financial Data ◽  
Descriptive Approach

This research aimed primarily to clarify the extent of the significance of financial analysis tools in the rationalization of investors’ decisions in the Khartoum Stock Exchange. This is, however, will be effected by identifying the role of financial analysis using financial ratios to provide information to make a sound decision. To achieve this objective, the research used the analytical descriptive approach, since the same conforms to such types of researches. To affect this, the research relied basically on the annual financial data of the case study. Based on said account, the research has reached a number of findings, the most significant of which, are the following: The utilization of trend analysis reporting in the Khartoum Stock Exchange has a great significance in the performance evaluation of the stock market. The liquidity ratios as a tool for financial statements analysis deemed as a perfect indicator in the process of decision making in the stock market. The debt ratios are the most significant tools in the financial analysis of the published financial statements, which help investors to take sound investment decisions.

scholarly journals Using the Financial Analysis Approach to Forecast Industrial Production: A Guide from Jordan

2021 ◽  
Vol 16 (5) ◽  
pp. 91
Author(s):  
H. Banikhalid ◽  
S. Al-oshaibat
Keyword(s):  
Growth Rate ◽  
Industrial Production ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Value Added ◽  
Industrial Sector ◽  
Added Value ◽  
Financial Ratios ◽  
Amman Stock Exchange ◽  
The Right

This study aims to derive the function that can be used to predict the growth rate in the added value of industrial production in Jordan, depending on the financial ratios of industrial companies listed on the Amman Stock Exchange. To achieve the objectives of the study, the descriptive and analytical approach and multiple regression analysis were used using the SPSS program. The study population was represented by the public joint-stock companies listed on the Amman Stock Exchange in the industrial sector from 1994 to 2018. Results show that the financial ratios influencing the growth rate in industrial production value added the most (Industry t + 1) are earnings per share (EPS), net profit margin (NPM), and return on equity (ROE). Moreover, the effect is non-linear expressed by a function that can be used to predict the industrial production in Jordan. The study recommends paying attention to the partial input to predict macroeconomic variables, especially with the development of systems for storing and processing big data, as this method provides appropriate and sufficient data to make accurate decisions and enhances the right track.

scholarly journals Problems with the application of conventional financial ratios in corporate risk measurement

2013 ◽  
Vol 7 (4-5) ◽  
pp. 5-12
Author(s):  
Veronika Fenyves
Keyword(s):  
Financial Crisis ◽  
Financial Analysis ◽  
Risk Measurement ◽  
Financial Ratios ◽  
Visible Sign ◽  
Future Situation ◽  
Internal Stakeholders ◽  
Corporate Risk ◽  
A Company ◽  
Economic And Financial Crisis

One of the enterprises’ biggest fears is a potential bankruptcy situation. This is the reason there are a lot of people who try to anticipate it. To be aware of the actual and expected future situation of a company is in the interest of all those who are related. This topic has come to the fore after the economic and financial crisis of 2008. Companies, their creditors and internal stakeholders should be aware of the liquidity and solvency situation of a given company, because its deterioration can cause serious problems for all of them. During the financial analysis of companies, the problem of liquidity indicators showing bad signals can often be experienced, although there is no visible sign of difficulty in their operation. In other cases, the situation is just the opposite, i.e. liquidity ratios are adequate, but still, the business faces payment issues. How could it happen? The purpose of this study is to present indicators which can measure more accurately and reliably the actual liquidity position of a company.

scholarly journals SOCIAL CROWDFUNDING: A NEW MODEL FOR FINANCING REGIONAL DEVELOPMENT?

2020 ◽  
Vol 8 (2) ◽  
Author(s):  
Susana BERNARDINO ◽  
José FREITAS SANTOS ◽  
José CADIMA RIBEIRO
Keyword(s):  
Regional Development ◽  
Urban Areas ◽  
Stock Exchange ◽  
Early Stage ◽  
Critical Role ◽  
Geographical Location ◽  
Regional Level ◽  
The Social ◽  
Social Ventures

Crowdfunding is an increasingly attractive source to fund social projects. However, to our best knowledge, the study of crowdfunding for social purposes has remained largely unexplored in the literature. This research envisages a detailed examination of the role of crowdfunding on the early-stage of the social projects at regional level. By comparing the characteristics of the projects available in the Portuguese Social Stock Exchange platform with others that did not use this source of financial support, we envisage to show the critical role of crowdfunding on regional development. The use of inferential techniques (Chi-square test, the Cramer’s V statistic, the Goodman and Kruskal λ and the odds ratio) demonstrates that the use of the Portuguese Social Stock Exchange platform was linked to the geographical location of the social venture as well as its geographical scope. Also, social ventures located on rural regions are more likely to use social crowdfunding platforms than social ventures located in urban areas. Further, the circumstance of having the social ventures acting at a local or regional level seems to be strongly associated with the possibility of using crowdfunding for financing social projects.

The role of financial analysis in activity of petroleum engineering enterprise

2020 ◽  
pp. 62-66
Author(s):  
T.A. Taghiyeva ◽  
Keyword(s):  
Financial Analysis ◽  
Industrial Process ◽  
Petroleum Engineering ◽  
Administrative Staff ◽  
Business Unit ◽  
Attention Focus ◽  
Wide Range ◽  
Market Relations ◽  
Engineering Enterprise

The competition becomes topical as the major regu-lation mechanism of industrial process within market economy. The activity of each business unit under modern market conditions is the attention focus for a wide range of participants in market relations interested in the results of its functioning. To provide the survivability of the enterprise under modern conditions, the administrative staff foremost, should be able to really estimate financial state both its own enterprise and existing potential competitors.

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