Abstract

The aim of this thesis is to determine the Income Smoothing phenomenon in the Iraqi banks and their effects on the Stocks Abnormal Accruals. The results indicates that the income smoothing are practices in all the sample banks, it has effect on the Stocks Abnormal Accruals, The study also shows that the effect on the mentioned rates appears in the small size organizations while it does not has any effect on the large ones. The study obtained a set of conclusions, the most important ones are:-
1- The income smoothing creates uncertainty or at least affects the trust between the investor and the organization.
2- The abnormal accruals might be achieved if the time space between the final closure (in 31 12) and the statements issue is prolonged, the rumors became more in this period and this affects the stocks prices and consequently the accruals. The most important recommendations are :The necessity of issuing the laws and legislations to punish the management that practice the income smoothing in order to limit these practices and reducing the period of delaying the yearly financial reports issue to increase the benefits of their data and to reduce the depending on the rumors or the agents devices.