Impact of Disclosure of Non-Financial Information on Attracting Investment in Iraq
DOI:
https://doi.org/10.53819/81018102t5344Abstract
The research aimed to show the impact of the quality of full disclosure of non-financial information on the effectiveness of attracting investments by identifying the non-financial information that must be available in addition to the financial information that has been disclosed in the financial reports, due to the insufficiency of financial information that companies disclose in their financial reports, as the research focuses on a main premise, which is that the quality of disclosure of non-financial information has a significant impact on attracting investment, it has The research relied on the questionnaire form that was distributed to academics working in Iraqi universities, which numbered 47 in order to test and analyze the results. The study found the disclosure of non-financial information provides a true picture of the company's position as well as financial information that enables investors to make investment decisions because it is disclosed periodically or immediately after its occurrence. Transparent disclosure of non-financial information reduces the risks faced by investors because investors can assess a company's ability to achieve its long-term goals by understanding the company's impact on the environment and society. Disclosure of non-financial information helps improve the company's reputation among customers, consumers and the local community, which increases its attractiveness to investors. Disclosure of non-financial information helps reduce the degree of uncertainty, as well as reduce information asymmetry. Based on the results of statistical analysis, it was found that there is a direct relationship between the independent variable (disclosure of non-financial information) and the dependent variable (attracting investment), that is, the more non-financial information is disclosed, the more it leads to attracting investment. The study recommends investors should be made aware of the importance of non-financial information due to the accurate information it provides that reduces uncertainty. The company must prepare comprehensive reports on its non-financial performance. The disclosure of non-financial information should be transparent and trustworthy, and based on agreed international standards. The concerned investment authorities prepare and implement special courses to educate investors about the importance of future investment information, especially non-financial ones. Companies should disclose their non-financial information by disclosing aspects of their business that go beyond traditional financial figures such as their environmental impact, social responsibility and governance, as this information plays an increasingly important role in investment decisions.
Keywords: Full disclosure, non-financial information, Investment Attraction, Investors, Iraq.
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