Employ financial and non-financial information
(SASB standards) in enhancing transparency of
reporting, investor‘s confidence and company value
A Dissertation Submitted to The Council of the College of
Administration and Economics – University of Kerbala, as Partial
Fulfillment of Requirements for the Degree of Master in Accounting
By
Ali Oudah Zaki AL battat
Supervised by
Prof. Dr. Talal Mohammed Ali Al jajawy.
Companies seek to achieve the highest level of transparency in disclosure through the
role of financial and non-financial information. The research problem stems from the
weak disclosure of companies listed in the Iraqi Stock Exchange on financial and nonfinancial
information (SASB standards) in their published reports. There is also
another problem that can be identified, which is The weak degree of reporting
transparency and its reflection on investor confidence and the value of the company.
One of the most important reasons for the collapse of major international companies
is the weak degree of transparency in disclosure, which affects the performance of
companies. The importance of research emerges through the importance of financial
and non-financial information (SASB standards) for its main and important role in
promoting Transparency of financial reporting as a concept in disclosure and its
modernity, as it occupies an important position in the business world, but it has not
received full attention by companies in Iraq. On the contrary, reporting transparency
must occupy an important place because it is consistent with international accounting
standards, and its good employment has a great role. In enhancing and increasing
investor confidence and maximizing company value, this research aims to identify the
role of financial and non-financial information (SASB standards) in enhancing
reporting transparency and business confidence. Investors and the value of the
company, the study included the (5) companies in the insurance sector for the period
(2015-2016-2017-2018), as the level of disclosure of financial and non-financial
information (SASB standards) was measured using the sustainability accounting
standards for insurance companies FNO301) and measuring the degree of
transparency using indicators issued by (S&P), as the results of the research showed
that companies recorded weakness in disclosing financial and non-financial
information (SASB standards) amounting to (25.292%) and a low percentage of
reporting transparency amounted to (56.952%), as for The relationship between the
value of companies and the level of performance and the relationship of transparency
of financial and non-financial information by recognizing the link between
transparency of reporting and the value and performance of the company using the
Tobin’s Q equation to identify the value of the company, its financial performance
and the stock price (closing), as it showed a very strong direct correlation relationship
As for identifying investors’ confidence, it was relied on the opinions of a group of
investors and those interested in investing in the financial markets, through an
electronic questionnaire using the program (Q Survey), which was distributed,
analyzed, and concluded with The results of the statistical program (SPSS) showed
that the disclosure of financial and non-financial information contributes to enhancing
investor confidence. The most important recommendations are that companies need to
increase disclosure of financial and non-financial information and the level of detail,
due to the necessity of the company’s continuity and sustainability, as disclosure of
sustainability accounting standards must be increased and transparency improved
reporting.