A proposed index for Disclosure of Prospective information in the banking sector and its reflection on the market value

Abstract

The research aims to study the impact of the disclosure of (Prospective Financial Information), on the market value of the banks listed on the Iraq Stock Exchange for the years (2018-2019), which were represented by (7) banks as a sample for research. and with the use of the content analysis method For the annual financial reports of the research sample banks, after building an index to measure the level of disclosure of Prospective financial information (PFI) according to the amended Iraq Stock Exchange Law (74) for the year (2004) and the disclosure instructions issued pursuant to it and the Arab and foreign research currents, and the impact of disclosure on the index (PFI)The proposal, on the market value of the banks the research sample, which was measured using the Tobin's Q model, to achieve the objectives of the research, the content analysis method was used for the financial reports and management reports for the banks the research sample, in addition to the instructions, regulations, laws and instructions that the research sample is subject. The study came out with a number of conclusions, the most prominent of which was the variation in the level of disclosure of Prospective financial information in the financial reports of the banks, the research sample, where the average disclosure percentage ranged from (PFI) (51% - 75%), and to an overall sector rate of (63%), in addition to Presence a correlation The moral and its impact between the disclosure of Prospective information and the market value, and one of the most prominent recommendations of the study is the proposal to compel companies within the sectors listed in the Iraq Stock Exchange to display Prospective financial information from within their annual reports, through instructions issued by the Market Authority,  as well as adopting Entities related to the profession apply the international auditing standard related to confirming Prospective financial information adapted to suit the requirements of the Iraqi environment.