A Suggested Approach to Use a Decision Tree to Rationalize the Decision of Accounting Information Users under the Risk and Uncertainty

Maseer , Rabab Wahhab ^[1] ; Flayyih, Hakeem Hammood ^[1]
1. [1] University of Baghdad
  
  University of Baghdad
  
  Irak
Localización: Estudios de economía aplicada, ISSN 1133-3197, ISSN-e 1697-5731, Vol. 39, Nº Extra 11, 2021 (Ejemplar dedicado a: Special Issue on Financial Crises and its effect on the economics of the countries)
Idioma: inglés
Texto completo no disponible (Saber más ...)

Resumen
- The research aims to examine a proposed approach by using the decision tree as a tool in reducing the risk and uncertainty that accompanies business when making an investment decision by users of accounting information. Nevertheless, the research aims to utilize the decision tree in the process of rationalizing investment decisions for investors who rely on the accounting information contained in the financial statements in light of these risks and uncertainties, as well as highlighting the role of the decision tree as a tool that contributes to guidance towards rationalizing economic decisions. Furthermore, a program designed by researchers was used to measure the measurement process based on the (Dury, 2013) model. A random sample of 16 companies listed on the Iraqi Stock Exchange was selected out of 84 for the year 2018, and they were divided into two groups for the purpose of testing the proposed model, and the results that were reached indicate that the model designed on the basis of the decision tree model contributed to reducing the amount of uncertainty, which of course reduces the amount of risks resulting from decisions, and thus the possibility of using the model by users of accounting information in order to make an investment or financing decisions.