THE IMPACT OF THE QUALITY OF FINANCIAL REPORTING ON INVESTORS’ DECISIONS FOR A SAMPLE OF PRIVATE COMPANIES PARTICIPATING IN THE IRAQI STOCK EXCHANGE/AN APPLIED STUDY

Abstract

Methods: The study used financial indicators to analyze and diagnose the financial situation of telecom companies like Zain Iraq and Asiacell, providing insights into the quality of financial reporting.

Results: The research concluded that investors primarily depend on the financial statements and reports of telecom companies in Iraq when making investment decisions. Additional information from other sources is also necessary for a rational investment choice.

Results Application: Investors should consider all available information, including financial reports, to make more logical investment decisions. The study emphasizes the importance of diversification in investment to reduce risk.

Conclusion, Discussion: The study highlights the critical role of accounting transparency and the high quality of financial reporting in aiding investment decisions. It suggests that investment decisions are more logical when based on comprehensive financial data, including accounting information and other relevant sources.

Limitations, Themes for Future Research:

• Limitations: The study focuses specifically on the Iraqi telecom industry, and the findings may not be generalized to other sectors or regions.
• Themes for Future Research: Future studies could explore the impact of financial reporting quality in other industries in Iraq or other developing countries. Research could also investigate the influence of additional external factors (such as market conditions) on investment decisions.