The Impact of Accounting Measurement of Financial Instruments at Fair Value on Stock Prices Changes for Banks: an Empirical Study on Companies Listed on Iraqi Stock Exchange
Authors: Anssari Majid Ahmed AL 
Published: May 2023

Purpose: The aim of this study is to examine is the relationship between the accounting measurement of financial instruments at fair value and changes in stock prices for banks listed on the Iraqi Stock Exchange. The study aims to determine whether there is a relationship between the fair value measurement of financial instruments and changes in stock prices and, if so, to what extent this relationship exists. The study may also aim to identify any factors that may influence this relationship and to provide insights and recommendations for stakeholders, such as investors, regulators, and financial institutions.

Theoretical framework: The theoretical framework for the study may be based on financial reporting theory, which suggests that the financial statements of a company should provide information that is useful for decision-making by stakeholders. This may include information on the company's financial performance, financial position, and cash flows. The accounting measurement of financial instruments at fair value may have a significant impact on the stock prices of banks listed on the Iraqi Stock Exchange. Banks that adopt fair value accounting for financial instruments may experience more volatility in their stock prices compared to banks that do not use this method.

Design/ Methodology: A qualitative methodology is used in the study. Given the specifics of the topic at hand, and in an effort to provide a solution and test certain hypotheses, the theoretical research relied on a descriptive method, discussing relevant studies and theoretical literature to examine the many ideas and aspects of fair value measurement.

Findings: The study's findings could contribute to the existing literature on the impact of fair value accounting on stock prices and provide further insight into the subject. The results of the study could be used to inform future research on this topic, including the development of new models or hypotheses. The study's findings could be used by banks listed on the Iraqi Stock Exchange to assess the potential impact of adopting fair value accounting for financial instruments on their stock price. The study's findings could be used by regulators and policy makers to assess the impact of fair value accounting on stock prices and the stability of the financial system.

Implication: This study can serve as a useful resource for anyone who wants to study the changes of stock market in Iraq and it is relationship with the accounting measurements of the financial instruments, also it would be very essential to be checked by the stakeholders, such as investors, regulators, and financial institutions, who are interested in the stock market of Iraq.

Originality/value: The originality/value of an empirical study on the impact of accounting measurement of financial instruments at fair value on stock prices changes for banks listed on the Iraqi Stock Exchange could lie in its contribution to the understanding of the specific effects of fair value accounting on stock prices in the Iraqi banking sector. This is an understudied area, as previous research on the topic has largely focused on other countries or regions.