Impact of Accounting Disclosure of Credit and Liquidity Risks on Rationalization of Investment Decisions: A Study on a Sample of Companies Registered in the Iraq Stock Exchange

Abstract

The research aimed to try to identify the impact that accounting disclosure of credit and liquidity risks can have on rationalizing investment decisions. To achieve the above goal, the researcher followed the descriptive analytical approach, and a main hypothesis was formulated, and then data was collected through a questionnaire form. The study population was represented by employees. In companies registered in the Iraq Stock Exchange and investors active in the financial market, the sample, which was selected using a simple random sampling method, consisted of (75) individuals. Questionnaires were distributed to the same number, and the forms suitable for analysis reached (75) forms. They were then analyzed using the statistical program (SPSS). For social sciences. The research reached a set of results, the most important of which are: Credit and liquidity risks are among the most important risks that companies may face, and disclosing them increases users’ awareness of risks in general. There is a statistically significant correlation between accounting disclosure of credit and liquidity risks and rationalizing investment decisions. The research recommended the need to Companies must disclose all risks to which they may be exposed, so that the financial statements and reports are transparent and that the accounting information they contain has the qualitative characteristics of accounting information.