Managerial ability, earnings quality and ISIS: evidence from Iraq

Purpose This study investigates the association between managerial ability and earnings quality in firms listed on Iraq Stock Exchange how emergence of Islamic State Syria (ISIS) influences association. Design/methodology/approach uses a sample over period 2012–2018. Managerial is quantified using data envelopment analysis, measured by restatement, persistence, accruals response coefficient. Panel regression analysis used to examine research hypotheses. Findings The findings indicate that positively affects Iraqi ISIS weakens relationship quality. These are robust alternative measures ability, as well various approaches address endogeneity including propensity-score matching difference-in-differences analysis. Originality/value provides insight into impact an under-studied emerging market. Furthermore, this broadens existing literature about financial consequences modern terrorist group, ISIS.