Evaluating the Role of Integrated Reporting Disclosure Quality in Enhancing the Informational Efficiency and Economic Performance of Companies: Evidence from the Iraq Stock Exchange
Keywords:
Integrated reporting, integrated reporting quality, financial performance, value relevance of accounting information, earnings quality, Iraqi Stock ExchangeAbstract
This study aimed to evaluate the effects of integrated reporting disclosure quality on financial performance, the value relevance of accounting information, abnormal stock returns, and earnings quality among companies listed on the Iraq Stock Exchange. This applied study employed a quantitative, descriptive-correlational design. The required data were extracted from audited financial statements, annual reports, and trading information of companies listed on the Iraq Stock Exchange between 2018 and 2024. The research hypotheses were tested using multivariate panel-data regression models. The F-Limer test confirmed the superiority of panel-data models over pooled regression, while the Hausman test supported the application of fixed-effects estimators. Given the presence of heteroscedasticity and cross-sectional dependence, robust estimators and generalized least squares procedures were employed to improve the statistical reliability of the estimates. Integrated reporting quality had a positive and statistically significant effect on corporate financial performance (β=0.284, t=4.917, p<0.001). It also significantly enhanced the value relevance of accounting information (β=0.317, t=5.284, p<0.001) and abnormal stock returns (β=0.294, t=4.863, p<0.001). The interaction between integrated reporting quality and earnings per share was positive and significant (β=0.176, p=0.002), indicating that higher disclosure quality strengthened the information content of reported earnings. Moreover, the interaction effects of integrated reporting quality with discretionary accruals (β=-0.187, p=0.001) and income smoothing (β=-0.172, p=0.001) were negative and significant, demonstrating that high-quality integrated reporting reduced earnings-management practices and improved earnings quality. High-quality integrated reporting improves corporate economic performance and capital-market informational efficiency by enhancing transparency, reducing information asymmetry, and constraining opportunistic managerial behavior. Accordingly, developing standardized and enforceable integrated reporting frameworks may strengthen earnings reliability, investor decision-making, corporate accountability, and the overall efficiency of the Iraqi capital market.
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Copyright (c) 2025 Baydaa Jasim (Author); Sahar Sepasi (Corresponding author); Javad Rezazadeh (Author)
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