THE MEDIATING ROLE OF GEOPOLITICAL RISKS ON THE RELATIONSHIP BETWEEN ECONOMIC VOLATILITIES AND OF ACCOUNTING CONSERVATISM IN FINANCIAL REPORTS

Abstract

The study aimed to identify the mediating role of geopolitical risks in the relationship between economic volatilities (Gross Domestic Product, inflation, exchange rate, and liquidity) and levels of accounting conservatism in the Financial Reports issued by the banks listed on the Khartoum Stock Exchange (KSE) for the period of 2011 - 2022. The study results showed there is obvious and direct significant impact of the geopolitical risks factors in creating economic volatilities and disturbances in the variables of the study, and these volatilities lead institutions to adopt conservative accounting policies. The study also emphasized the importance of encouraging and implementing an accounting conservatism policy in financial reports during times of economic volatility, as this allows these reports to predict the future, reduce risks, and assist in making investment decisions that are compatible with various investment conditions.