The impact of environmental disclosure on financial performance indicators of Iraqi industrial companies
<p>The main aim of this study is to determine the influence of environmental disclosure</p><p>on financial performance of Iraqi industrial companies. This is because of the Iraqi</p><p>Companies Law did not required for certain in...
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| Format: | thesis |
| Language: | eng |
| Published: |
2023
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| Subjects: | |
| Online Access: | https://ir.upsi.edu.my/detailsg.php?det=9883 |
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| Summary: | <p>The main aim of this study is to determine the influence of environmental disclosure</p><p>on financial performance of Iraqi industrial companies. This is because of the Iraqi</p><p>Companies Law did not required for certain industries such as industrial companies to</p><p>disclose their environmental information in annual reports. Furthermore, instability of</p><p>the Iraq political system and exposure to a war also dedicated to less information</p><p>disclosure practices in Iraqi companies. All these factors have been observed to</p><p>significantly influences on the industrial companys performance. A Legitimacy</p><p>Theory has been adopted to explore the relationship between environmental disclosure</p><p>and financial performance, using quantitative approach and purposive sampling was</p><p>utilized as the main research design. The data was collected from 25 manufacturing</p><p>companies listed on the Iraq Stock Exchange (ISX) and the oil sector from 2015 to</p><p>2019. The data was analyzed through descriptive statistics, univariate statistics,</p><p>regression analysis and content analysis of the companies annual reports using Eviews.</p><p>The main results showed environmental disclosure (= 0.265, p-value <0.05) positively</p><p>influenced Return on Assets (ROA). Also, extended analysis showed a positive impact</p><p>of environmental disclosure (=0.0369, p-value <0.05) on Return on Investment (ROI).</p><p>However, the finding also revealed that environmental disclosure (= 0.158, p-value</p><p><0.05) was positive and significant in affecting Return on Sales (ROS). It was found</p><p>that environmental disclosure is fully affected (=0.305, p-value <0.05), and had</p><p>positive effects on Added Market Value (AMV). Nonetheless, environmental</p><p>disclosure had a negative impact on Earnings Per Share (EPS) (= 0.496, p-value</p><p><0.05). These results suggest that a high-sensitive industry towards the environmental</p><p>issues provide more disclosure to boost investors' confidence. The study's outcomes</p><p>provide insights view-related environmental disclosure among the sensitive industries</p><p>that relate to legitimacy issues in Iraq. Moreover, improving the quality of reporting</p><p>would increase the companys reputation and strengthen its competitiveness. This</p><p>contributes to the adoption of a developed checklist mechanism to measure the true</p><p>level of environmental disclosure.</p> |
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