Impact of Digital Assets Disclosure on Investment Decisions and Firm Value

The study examines the impact of digital asset disclosure on investor decisions and company value in a sample of Iraqi banks. This study examines the evolution of digital asset disclosure quality across annual reports in the Iraqi banking sector and its impact on investor behavior in the stock market. Content analysis was employed to assess the level of digital asset disclosure in Iraqi banks from 2016 to 2023 across four key dimensions: public information about digital assets, valuation, compliance with regulations and guidelines, and disclosure of digital asset risks. The average share price indicated investor behavior, and the Tobin Q index was used to measure company size. The results suggest that digital asset disclosure across all dimensions can increase stock prices by enhancing the bank’s reputation and investor confidence in its operations, which is reflected in higher demand for shares in the stock market. The results also show that disclosing digital assets in all dimensions can enhance a company’s value by strengthening the bank’s reputation and increasing confidence in its activities, reflected in its market value. These findings provide a deeper understanding of the digital asset disclosure strategy in the Iraqi banking sector’s annual reports, which focuses on maintaining financial market stability by managing digital asset disclosure levels.