The integration between managerial ability and the effectiveness of audit committees and its impact on the stock price crash risks

Abstract

The research aims to frame the intellectual integration between managerial ability and the effectiveness of audit committees by stating the aspects of this integration and its impact on various fields and stating the philosophical and applied impact of this integration on the risks of crash stock price by applying it to 70 observations bank / year of Iraqi banks listed on the Iraq Stock Exchange for the period from 2016-2022, The (Demerjian et al. (2012) model was used to measure Managerial Ability, and to measure the effectiveness of audit committees, it was measured using indicators (independence, size, experience, number of meetings, percentage of ownership of audit committee members), while the method of weekly stock returns volatility from bottom to top was used to measure the risk of stock price risk. The research reached several conclusions, the most important of which is that the integration between managerial ability and the audit committee has a significant impact on reducing the stock price crash risks, as the audit committee supports the efforts of managerial ability in reducing the stock price crash risks, the research recommends is the paragraphs of integration between the managerial ability and the audit committee should be evaluated in terms of the executive role of managerial ability and the supervisory role of the audit committee, which increases the value of the economic unit and reduces the stock price crash risks.