The influence of information asymmetry on the quality of corporate governance
Basim Abdullah kadhim & Jasim Idan Barrak
Al-Furat Al-Awsat Technical University
university of Kerbala
The purpose of this study is to show that the effective implementation of governance mechanisms can improve the problem of accounting information asymmetry between business entities and stakeholders. These mechanisms will positively impact the local environment in Iraq, especially in the commercial banking sector. The research task can be presented by the following question: Does the proper application of corporate governance mechanisms reduce the problem of information asymmetry in the accounting of commercial banks listed on the Iraqi stock exchange? A sample of 13 commercial banks on the Iraqi Stock Exchange has been chosen to answer this question. Banks included in the sample are Commercial Bank of Iraq, Khaleej Commercial Bank, Bank of Baghdad, Bank of Babel, Iraqi Investment Bank, Sumerian Commercial Bank, Middle East Investment Bank and Mosul Development Investment Bank, Union Investment Bank, Credit Bank of Iraq, and the Mansour Investment Bank. The statistical program SPSS V.24 has been used to measure the relationship between the variables. The study’s most important conclusion and recommendation are that there is an information gap between the economic units that issue financial reports and the stakeholders due to the asymmetry of information that impacts equal opportunities among them. Based on their decisions, developing laws and regulations regulating the Iraqi Stock Exchange to reduce the information gap between the economic unit and stakeholders to ensure the provision of information to all users, which is reflected in efficiency and raising the level of investment.
Volume 13, Issue 2, Pages 59-71