Integration between the application of international financial reporting standards and financial standards for sustainability accounting and its impact in the value of the company

 (Applied research of the commercial and investment banks listed in the Iraq Stock Exchange)

A submitted Thesis to Board of the College of Administration and Economics – University of Karbala, as a part for Requirements of the Degree of Doctor of Philosophy in Accounting sciences.

By

Hayder Jameel Ahmed Al -Gburi

Supervised Under

Prof. Dr. Assad Mohammed Ali Wahhab

Abstract

This research aims to measure the impact on the value of banks in light of the integration of the application between the international financial reporting standards IFRS and the financial standards for sustainability accounting SASB, as well as measuring the performance indicators of the research sample banks, by means of the impact and correlation measurement model. Accordingly, the study was conducted on a sample of 20 Iraqi commercial and investment banks listed in the Iraq Stock Exchange for the period (2015-2021), that is, by 136 observations (bank/year). The research variables were measured based on the models developed by the previous literature, where the effect of applying the International Financial Reporting Standards IFRS was measured by means of financial performance indicators (return on assets – return on equity – financial leverage – company size (total assets) -the share profitability {before the year of application 2015 until 2021{. Hence, the variable of financial sustainability accounting standards, the percentage of disclosure of sustainability accounting information for commercial and investment banks was measured according to the standards of commercial banks FN-CB (14 indicators) and the standard of investment banks FN-IB (18 indicators). The dependent variable which is the value of the company, was measured using the measurement model (Tobin’s Q) for the research sample companies (Sauaia & Junior, 2002). Additionally, the integration effect between the criteria for the two groups was measured by means of the multiple regression model, as well as the statistical methods to test the research hypotheses and knowing the size of the correlation and the coefficient of determination using both the statistical package for social sciences (SPSS) and the spreadsheet program (Excel). This study is significant because it showed that there is a correlation and impact between the integration of international financial reporting standards and financial sustainability accounting standards and the value of the company, and this correlation varies between positive and negative, strong and medium. Perhaps the reason for the inconsistency is due to the size of the company, its management, and the cultural awareness of investors, customers, and regulatory bodies.

Integration between the application of international financial reporting standards and financial standards for sustainability accounting and its impact in the value of the company

 (Applied research of the commercial and investment banks listed in the Iraq Stock Exchange)

A submitted Thesis to Board of the College of Administration and Economics – University of Karbala, as a part for Requirements of the Degree of Doctor of Philosophy in Accounting sciences.

By

Hayder Jameel Ahmed Al -Gburi

Supervised Under

Prof. Dr. Assad Mohammed Ali Wahhab

Abstract

This research aims to measure the impact on the value of banks in light of the integration of the application between the international financial reporting standards IFRS and the financial standards for sustainability accounting SASB, as well as measuring the performance indicators of the research sample banks, by means of the impact and correlation measurement model. Accordingly, the study was conducted on a sample of 20 Iraqi commercial and investment banks listed in the Iraq Stock Exchange for the period (2015-2021), that is, by 136 observations (bank/year). The research variables were measured based on the models developed by the previous literature, where the effect of applying the International Financial Reporting Standards IFRS was measured by means of financial performance indicators (return on assets – return on equity – financial leverage – company size (total assets) -the share profitability {before the year of application 2015 until 2021{. Hence, the variable of financial sustainability accounting standards, the percentage of disclosure of sustainability accounting information for commercial and investment banks was measured according to the standards of commercial banks FN-CB (14 indicators) and the standard of investment banks FN-IB (18 indicators). The dependent variable which is the value of the company, was measured using the measurement model (Tobin’s Q) for the research sample companies (Sauaia & Junior, 2002). Additionally, the integration effect between the criteria for the two groups was measured by means of the multiple regression model, as well as the statistical methods to test the research hypotheses and knowing the size of the correlation and the coefficient of determination using both the statistical package for social sciences (SPSS) and the spreadsheet program (Excel). This study is significant because it showed that there is a correlation and impact between the integration of international financial reporting standards and financial sustainability accounting standards and the value of the company, and this correlation varies between positive and negative, strong and medium. Perhaps the reason for the inconsistency is due to the size of the company, its management, and the cultural awareness of investors, customers, and regulatory bodies.