The effect of earnings quality and bank continuity: the moderating role of ownership structure and CSR

ABSTRACT

This study examines the empirical relationship between earnings quality (EQ) and bank continuity. Moreover, it examines the moderating role of ownership structure, and women on boards of directors as index of social performance (SP) among Iraqi listed banks in the context of social responsibility. The researchers used panel data from 12 years (2008–2019) and applied OLS to verify whether ownership structure and gender diversity modifies the relationship between EQ and bank continuity. The study found that Iraqi banks are in a state of financial instability and that the EQ is significantly low. This paper also provides evidence that managerial and concentration ownership has no effect as moderating variables on an administration's motives towards maintaining a bank's continuity and EQ. In addition, the study found that the presence of women on the board of directors plays a significant role as a moderating variable, as gender diversity in the board of directors improves the relationship between EQ and a bank's continuity..

KEYWORDS:

• EQ
• bank continuity
• ownership concentration
• managerial ownership
• gender diversity
• Iraq

Disclosure statement

No potential conflict of interest was reported by the author(s).