Debt structure

Finance and indebtedness remain major problems for most countries, especially developing countries it therefore requests to stand in front of them to reduce them and prevent their exacerbation, Global rating agencies are a reflection of the urgent need for investors and borrowers to identify factors affecting creditworthiness to bridge the existing information gap. Iraq was approved for the period 2004-2017 using a model (Toda Yamamota Causility) The desire to provide information on the level of risk before lending to the government or financial and banking institutions to assess the solvency and the desire to meet debts to meet current and future financial obligations in a timely manner, and the degree of rating is not an absolute fact, but expect to the current financial situation may err and may infect, However, creditworthiness indicators remain the most important criteria for assessing the likelihood of the borrower not repaying the loan amount. The researcher concluded that the most important variable affecting the sovereign creditworthiness of Iraq is debt service, especially in the short term On the other hand, the availability of liquidity gives great flexibility to Iraq in the payment of its obligations. 

Earning is one of the most important items of financial statements. Sometimes managers manipulate and distort earning reports to maximize their own benefits, reach a certain profitability level, or achieve a certain corporate objective. Firms with a low level of debt tend to have few or no restrictive clauses in their debt contracts, which allow them to operate with less concern about breaching these contracts and give less incentive to managers to engage in earning management reports through accrual manipulation. However, when firms accumulate large amounts of debt, the relationship between debt and accrual-based earnings management tends to get reversed. In firms with large debts, managers are incentivized to report good earnings as they are under pressure to avoid the penalties of violating the restrictive clauses in their debt contracts. In the absence of scientific and empirical evidence regarding this issue, the present study examined the nonlinear relationship between debt structure and real and accrual-based earnings management. For this purpose, the data pertaining to a sample of 130 firms listed on the Tehran stock exchange from 2014 to 2019 were collected and analyzed. The results of multivariate regression analysis showed a nonlinear relationship between debt structure and accrual-based earnings management. A non-linear relationship was also found between current debt structure and real earnings management. However, the results could not confirm the presence of a non-linear relationship between total debt structure and real earnings management