The relationship between foreign ownership and the risk of stock price collapse under the Real Earnings management

Abstract

The paper aims to explain and display the concept of the risk of stock price collapse and the indicator that indicates its measurement, as well as presenting and explaining foreign ownership and how to measure it, in addition to giving the concept of earnings management with real activities and its measurement models. The collapse of stock prices, as well as the statement of the effect of earnings management with real activities as a moderating variable on that relationship, as the deductive approach was adopted in presenting the theoretical side of the research. The results show a statistically significant effect of earnings management with real activities as a moderating variable in the relationship between foreign ownership and the risks of stock price collapse. The future collapse of stock prices or avoiding them through improving the financial reporting environment and activating control mechanisms and corporate governance, especially since the research has proven that there are practices for managing profits using the activities of some Iraqi banks listed in the Iraq Stock Exchange.