Measuring and analysing the impact of operational risks on the earning quality of a sample of Islamic banks listed on the Iraqi stock exchange for the period (2011-2021): an applied study

This study aims to measure the level of earning quality in Islamic banks and then test the impact of operational risks on earning quality by applying it to a sample of Islamic banks listed on the Iraq Stock Exchange during the period of 2011–2021. The study was adopted to achieve Its objectives are based on the quantitative approach, and the method used to develop the theory is the deductive approach. To measure the variables of the study, it relied on the basic indicator method in accordance with Basel II standards to measure operational risks, while it relied on the modified Jones model (1995) to measure the earnings quality expressed by the practice of earnings management through discretionary accruals. Then, it used the regression analysis method using panel data to test the impact of operational risks on earnings quality based on the Eviews program. The study reached many results, the most important of which is a low level of earnings quality in the Islamic banks in the study sample because it contains earnings management practices through discretionary accruals. With the exception of the years 2017–2018, this is due to their lack of earnings management practices. The study also found that there is no impact of operational risks on the earnings quality of the Islamic banks in the study sample. In the results, several recommendations are made, with the most significant being the necessity of issuing standards and legislation aimed at curbing earning management practices in Islamic banks, thus enhancing their quality. Additionally, the study suggests investigating the factors influencing earning quality in Islamic banks, which have led to its decline in the study's sample.