The Impact of Sustainability Information Disclosure on Company Performance in the Context of Corporate Governance An Empirical Study: Iraqi Companies For the extended period (2014-2023)

Abstract

The research aims to examine the impact of sustainability disclosure on corporate performance within the framework of corporate governance in the Iraqi context. Given the global and local emphasis on sustainability, companies have been entrusted with the responsibility of implementing related activities. To achieve this objective, data was collected from several companies listed on the Iraq Stock Exchange for the period (2014–2023). The researcher adopted an experimental approach for this purpose, utilizing the statistical software (SPSS) and employing measures such as the arithmetic mean, standard deviation, correlation and regression models, and Pearson’s test to examine the relationships and effects between variables.The study found that the level of sustainability disclosure in the sampled companies was low across the four selected sectors, as was the level of corporate performance—measured by (a) return on assets and (b) return on equity. However, corporate governance exhibited a good level in two of its mechanisms: (a) board size and (b) board independence. Additionally, there was a significant positive (direct) correlation between sustainability disclosure and both measures of corporate performance—(a) return on assets and (b) return on equity—as well as corporate governance according to (b) board independence and (c) board diversity.Key recommendations include the need for guidelines and instructions on sustainability disclosure, alongside mandatory regulations enforced by the supervisory authorities of the Iraq Stock Exchange. Furthermore, it is essential to enhance corporate governance mechanisms across all aspects by implementing reinforced oversight procedures by the regulatory bodies of the Iraq Stock Exchange to support these mechanisms