CORPORATE GOVERNANCE AND FIRM FINANCIAL PERFORMANCE: THE MEDIATING EFFECT OF EARNING QUALITY
The intricate dynamics between Corporate Governance (CG), Firm Performance (FP), and Earning Quality (EQ) have garnered significant attention in the field of corporate finance, particularly within the banking sector. This study examines these relationships within the context of Iraqi banks, especially in light of the Iraqi Code Corporate Governance (ICCG) established in 2017. Utilizing a sample of Iraqi banks listed on the Iraqi Stock Exchange from 2013 to 2021, the study employs a robust analytical approach to investigate the influence of CG on FP and the mediating role of EQ. The findings reveal a positive relationship between CG and FP, supporting the hypothesis that effective governance mechanisms contribute to enhanced firm performance. Furthermore, the study identifies EQ as a significant mediator in this relationship, underscoring its role in translating governance efforts into financial outcomes. These insights are particularly relevant for emerging markets, where effective governance structures are crucial for financial stability and growth. The study contributes to the existing literature by providing empirical evidence from a unique regulatory and economic environment and offers valuable implications for policymakers and practitioners in emerging markets.
Corporate Governance, Firm Performance, Earning Quality, Iraqi Banks, Emerging Markets.