فرشاد سبزعلی پور

The purpose of this study is to examine the impact of firm contingency factors— including financial leverage, liquidity, and tangible assets—on financial performance, and to analyze the moderating role of audit quality in companies listed on the Iraq Stock Exchange. The statistical population consists of all firms listed on the Iraqi stock market during the period 2014–2023. After applying screening criteria, 55 firms were selected as the final sample, resulting in 550 firm-year observations. The study adopts a descriptive-correlational approach and employs multiple regression analysis using EViews and Excel software. The results indicate that financial leverage and tangible assets have a significant negative effect on financial performance, whereas liquidity has a significant positive effect. The findings further reveal that audit quality exerts a significant positive influence on firms’ financial performance. Moreover, the interaction models demonstrate that audit quality plays an important moderating role by weakening the negative effects of contingency factors and strengthening their positive effects. Overall, the study highlights that audit quality, as a key monitoring mechanism, significantly enhances financial performance and reduces risk in firms listed on the Iraq Stock Exchange.