Abstract
This research aims to know the extent of the existence of income smoothing practices in Iraqi commercial banks and what is its impact on stock prices and to know the motives and reasons for adopting the management of banks operating in the Iraqi Stock Exchange to practice income smoothing behavior, and to clarify the impact of income smoothing practices on stock prices in sample banks. The research aims to ensure that the banks in the research sample likely to practice income smoothing have reaped the benefits of positive changes in their stock prices. The research reached a set of conclusions, the most important of which is that the phenomenon of income smoothing clearly affects the stock prices of banks practicing income smoothing. This prompted the researcher to present a set of recommendations, the most important of which is working to expand the understanding and awareness of users of financial statements of income smoothing practices and their impact on distorting the image of financial statements, as well as urging accountants and auditors to follow supervisory and other methods to ensure the accuracy and validity of accounting work and work to reduce flexibility. Which are provided by the accounting rules and standards that departments exploit to practice income-smoothing behaviour.
