The Modified Role of Family Ownership in The impact of Environmental Disclosure on Earnings Management: An applied Study on A sample of Companies Listed on The Iraqi Stock Exchange

The study aims to detect the effect of disclosing the environmental dimension on earnings management in light of the different level of family ownership. The study deals with analyzing the content of the financial statements published in the Iraqi Stock Exchange during the period (2011-2020) for a sample of companies from different sectors, using the multiple regression analysis to test the hypotheses of the study. The study concludes that the percentage of disclosure of social responsibility constitutes approximately 25%, and the percentage of family ownership in the study sample constitutes an amount of 27%. Moreover, there is a positive correlation between the percentage of disclosure of social responsibility and family ownership and a negative correlation between the environmental dimension and earnings management. In addition to the environment of companies in which the percentage of family ownership is high, the negative impact of disclosing the environmental dimension in the management of profits is less negative than that in the environment of companies in which the percentage of family ownership is low. The study recommends that social responsibility be given sufficient attention by companies due to its importance in the results and performance of companies, as well as the provision of professional organizations and accounting associations in Iraqi companies to provide a set of instructions that clarify how to disclose the dimensions of social responsibility and enact deterrent legislation for companies that practice earnings management in their financial statements. The concerned authorities in the Iraq Stock Exchange must spread awareness regarding the implications of practicing earning management operations.