The Impact of Accounting Strategy on Financial Risks in Iraqi Commercial Banks
DOI:
https://doi.org/10.71285/icpt.v3i1.49Ключевые слова:
Strategic accounting, financial risks, financial volatility, Credit risk, liquidity riskАннотация
The study aims to find the impact of Accounting Strategy on financial risks in Iraqi commercial banks. This study used the quantitative approach. Historical data were used to measure financial risks for the period from 2005 to 2023. While primary data represented by the questionnaire were adopted to measure Accounting Strategy. The results of this study concluded that Accounting Strategy negatively affects financial risks when combining risk dimensions. It is also having a negative effect on liquidity risks in Iraqi commercial banks. But, it does not have effect on the exchange rate risk, credit risks and interest rate risks. The results of the study demonstrate the importance of Accounting Strategy in reducing financial risks. This study focused on Iraqi commercial banks in the banking sector only. Future studies can focus on other markets and sectors. The implications indicate that banks need to be rational when making decisions regarding the strategy followed to reduce financial risks. In addition, Iraqi commercial banks should be concerned and committed to applying Accounting Strategy to achieve the desired goals. The originality of this study lies in providing insight into the importance of Accounting Strategy in reducing financial risks. The results reached by this study are important for shareholders, managers, investors.
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