Transparency in Disclosure of Environmental Costs and Its Impact on the Quality of Financial Reports A Study of a Sample of Iraqi Industrial Companies

Abstract

The objective of the study is to illustrate the degree to which financial report quality is enhanced by environmental cost transparency. This study was carried out on a sample of Iraqi industrial sector enterprises in order to highlight the significance of giving investors access to this vital information. The study's challenge is figuring out how much transparency helps with environmental cost disclosure. In order to fulfill the study's objectives and persuade investors that the financial statements of companies listed on the Iraq Stock Exchange are fair, a sample of Iraqi industrial companies listed on the exchange was selected, and a questionnaire specifically for this purpose was created. Sixty questionnaires were issued for analysis and research, of which ( 54) were genuine surveys, making up (90%) of the total surveys sent out. One of the study's most significant findings was that investment risks are significantly reduced when environmental expenses are disclosed in a transparent manner. The study conducted by Iraq Securities came to the conclusion that environmental cost transparency plays a significant role in the quality of financial reports, their impact on the financial market, and the restoration of investors' confidence in them. On the one hand, it increases the volume of investment, which greatly aids in persuading investors of the fairness of financial statements. However, lowering the risks associated with investments.