The impact of disclosing fair value and liquidity risks in accordance with IFRS 7 on the quality of financial reports and its impact on maximizing the company’s value
(An applied Study on a Sample of Iraqi Commercial Banks Listed in The Iraq Stock Exchange)
A Master’s Thesis Submitted to The Board of The College of Administration and Economics / University of Karbala, Which Is Part of The Requirements for Obtaining a Master’s Degree in Accounting
BY:
Azhar Saadi Hatem
Supervised by
Ass. Prof. Dr. Jasim Idan Barak Al Mamouri
The research aims to demonstrate the impact of disclosure of fair value and liquidity risks in accordance with IFRS 7 in the Iraqi environment by testing the impact of disclosure and liquidity risks on the quality of financial reports and maximizing the value of the company, by applying it to a sample of (10) Iraqi commercial banks listed on the market. Iraq Securities for the period (2016-2022), that is, (7) years for (10) banks, to be (70) views.
All research variables were measured based on models developed in the literature, where the level of fair value disclosure was measured by unifying the five disclosure ratios calculated on the basis of the financial statements after converting them to standard numbers for the purpose of making them homogeneous and removing the differences resulting from the mechanism for calculating each ratio for the sample years. In the research, as for liquidity risk, it was measured through a set of liquidity indicators, and the quality of financial reports was measured through the goodness of fit scale and also faithful representation. In addition, the company’s value was measured using the (Tobin’s Q) scale, in addition to using a set of methods. Statistics to test research hypotheses and determine the size of the correlation, effect, and level of significance between the research variables, using both the Statistical Package for the Social Sciences (SPSS) program, the Eviews-v10 statistical analysis program, as well as the statistical program (AMOS).
The results of the research showed that the first independent variable (disclosure of fair value) has a direct effect on the dependent variable (company value), and its effect is reflected through the mediating variable (quality of financial reports), that is, there is mediation, and also that the second independent variable ( Disclosure of liquidity risks has a direct impact on the dependent variable (company value), and its effect can also be reflected through the mediating variable (quality of financial reports), meaning there is mediation.
