PurposeThe present study aims to assess the potential impacts of board members' characteristics, including connectedness and independence, on the level of the firm's involvement in innovation and corporate social responsibility (CSR).Design/methodology/approachVariables of board members' interlock and independence are selected for measuring the board characteristics and their association with innovation. The range of disclosure of social responsibility (SR) of the firms inside and outside the industries is also analyzed through descriptive-correlational. The selected sample includes 280 firm-years listed firms on Iraq Stock Exchange during 2012–2017 and 1,026 firm-years on the Tehran Stock Exchange. The hypotheses are examined using multivariate regression models and panel data.FindingsThe observations show that board interlock and independence in both countries are willing to improve firms' innovation. Moreover, having controlled the industry index, the authors find that business environment innovation is willing to be transmitted into the firms through outside industry sources in Iran. In the Iraq country, regardless of industry index, the positive association between interlocked boards and firm innovation is established. Further analyses also articulate that board interlock is not considered a mechanism to transmit information and experiences about CSR activities.Originality/valueThis paper is a pioneer study to assess the relationship between board member characteristics and the firms' innovation and SR both in Iran and Iraq. Also, it extends the literature by considering the industry index as a significant source of knowledge and experience to gain more precise results. Therefore, the current paper may contribute to the development of knowledge in this field of study.

Purpose This study aims to assess the effect of the COVID 19 on small and medium-sized family firms’ risk-taking in Iraq. Design/methodology/approach Data was collected by distributing the questioners. The statistical population consists of 600 employers and small and medium-sized family and non-family firm managers. Hypothesis analysis was carried out after evaluating the questionnaire’s validity and reliability using the structural equation method. Findings The results indicate that COVID 19 influences small and medium-size family and non-family firms’ risk-taking. Originality/value Since no study carried out so far on the effect of COVID 19 on risk-taking of family and non-family Iraqi small- and medium-enterprise firms and since the political-economic condition of Iraq has been affected recently due to the presence of ISIS, its effects, as well as the civil war that taken place before COVID 19, assessing such a topic can contribute to the development of science and knowledge in this field.

Purpose The present study aims to examine the effects of the Islamic sacred months, namely, Muḥarram, Rajab, Dhu al-Qaʿdah and Dhu al-Ḥijjah, on stock prices on the Iran and Iraq Stock Exchanges. Design/methodology/approach Using the infrastructure models of the capital market, the daily stock prices were calculated for the sacred and non-sacred months. As the data of this study are non-stationary, the AMIRA time-series model was used for better understanding of the model or future projections. The dependent variables of this study are the daily stock indexes for Iranian and Iraqi Stock Exchanges, and independent ones are the sacred and non-sacred months of a lunar year. Data were gathered daily from the financial statements of Iranian and Iraqi Stock Exchanges websites. To test the hypotheses under study, a five-year period from 2012 to 2016 was considered for both Iraqi and Iranian Stock Exchanges, which corresponds with the lunar calendar from 1433-1437AH. Findings The obtained results indicated that there is no significant difference in stock prices between the sacred months of Muḥarram, Rajab, Dhu al-Qaʿdah and Dhu al-Ḥijjah and other non-sacred months. However, the stock price in the Iranian Stock Exchange has a significant difference in Rajab and Dhu al-Qaʿdah with other non-sacred months. Originality/value The results of this study will reveal more than ever the role of Islamic sacred months for society and users of financial statements to make better financial decisions especially in Islamic emerging markets.

Purpose This study aims to investigate the effect of psychological characteristics, including perfectionism, transcendental future and lifelong learning, on auditors’ cultural values and social health. It answers whether psychological characteristics can improve auditors’ cultural and social health values in Iraqi auditing firms. Design/methodology/approach Using the Cochran sampling method, 198 auditors were selected as the sample size. The effect of independent variables on the dependent variable has been investigated using partial least squares tests. Findings The results show a positive and significant relationship between perfectionism and improving cultural values of auditors. Moreover, the evidence indicates that the transcendental future positively impacts and enhances cultural and social health values by preventing and motivating criminal and lawful activities. Originality/value No research has been done on the impact of psychological characteristics on auditors’ cultural values and social health in Iraq. Therefore, this research will have helpful information and help develop knowledge in this field.

This paper aims to assess the impact of ISIS’s presence in Iraq on the reputation of listed firms on the Iraq Stock Exchange. This paper’s method is descriptive–correlational, and the selected sample includes 35 listed firms on the Iraq Stock Exchange during 2014–2019. This study measures the reputation of listed firms on the Iraq Stock Exchange. The presence of ISIS in Iraq is analyzed using a regression model and a dummy variable. Research hypotheses were tested using a multivariate regression model based on panel data. The obtained results show a significant relationship between the presence of ISIS in Iraq and the reputation of listed firms on the Iraq Stock Exchange, which means the presence of ISIS in Iraq has declined listed firms’ reputation on the Iraq Stock Exchange. Since the present study is a pioneer in examining this issue in an emerging economy, especially ISIS’s existence, the current study results may give academia and practitioners a profound insight.