Impact of Disclosure of Non-Financial Information on Attracting Investment in Iraq
DOI:
https://doi.org/10.53819/81018102t5344Abstract
This research examined the impact of non-financial information disclosure quality on investment attraction effectiveness. The study addressed the inadequacy of traditional financial reporting by investigating additional non-financial information requirements that should complement existing financial disclosures. Financial reports have proven insufficient in providing stakeholders with comprehensive information needed for investment decisions. Companies' limited disclosure of non-financial information has created an information gap that affects investment attraction. This study investigated how the quality of non-financial information disclosure influences investment decisions and corporate attractiveness to investors. The research employed a quantitative approach based on a primary hypothesis that non-financial information disclosure quality significantly impacts investment attraction. Data was collected through questionnaires distributed to 47 academics at Iraqi universities. The study utilized statistical analysis to test relationships between non-financial disclosure and investment attraction. The study found that non-financial information disclosure significantly contributes to enhancing corporate reputation among stakeholders, including customers, consumers, and local communities. This enhanced reputation was found to positively influence investor attraction. Statistical analysis revealed a strong positive correlation between non-financial disclosure quality and investment attraction effectiveness. The research concluded that comprehensive non-financial disclosure serves as a crucial mechanism for improving corporate transparency and stakeholder trust. The findings demonstrated that companies providing detailed non-financial information alongside financial metrics are better positioned to attract and retain investment capital. The study recommends that investors should receive education about the importance of non-financial information in reducing investment uncertainty. Organizations should develop comprehensive reporting frameworks that integrate both financial and non-financial metrics based on international standards. Investment authorities should implement specialized training programs to enhance understanding of non-financial information's role in investment decision-making.
Keywords: Full disclosure, non-financial information, Investment Attraction, Investors, Iraq.
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