Applying the logistic regression to the effect of the Profitability ratio on the quality of financial reporting in the stock exchange for the Period 2016-2022

This study aims to determine the effect of profit margin on the quality of financial reports using a binary logistic regression model. Therefore, in the study, an attempt was made to provide a conceptual aspect for each of the profitability ratio and quality of financial reports applicable aspects using the model. The study was obtained based on purposeful sampling. This is the audited financial list of (11) companies in the manufacturing sector out of (28) companies registered on the Iraqi Stock Exchange for the period (2016-2022). In the study, the quality of financial reports in manufacturing firms is used as the dependent variable. against profitability ratio as the independent variables, where each (gross profit margin, net profit margin, return on assets, and return on equity) was used as a measure of profitability ratio. The results of the analysis of this study show that the variable (return on assets) has a weak relationship with the quality of financial reports, which is the dependent variable. Since the dependent variable is influenced by the independent variable by 22.8%, and the model that has been constructed has proved a significant test and has a correct classification ability of 66.2%