Abstract

This study aims to test the role of a number of corporate governance internal mechanisms in controlling earnings management practices and the extent to which that role is influenced by the management equity rate and the rate of price / book value of share. This is applied to the 91 stock companies listed in the Iraqi Stock Market.
To achieve this aim, the researcher came with two sets of hypotheses. The first is concerned with corporate mechanisms represented by Board of Directors and Internal Audit & Review Committee; and the second is concerned with checking the impact of management equity rate and the rate of price / book value of share
The study findings were as follows:
1. There is a significant role by the Board of Directors to control earnings management practices. The more efficient the Board of Directors is in terms of its small size and increased external members, the less the earnings management practices will be, and vice versa.