Impact of Firm Characteristics on the Transparency of Accounting Disclosure and Competitiveness in the Banking Sector: The Case of Iraq

This study aims to examine the impact of firm characteristics on accounting disclosure transparency and the competitiveness of the banking sector. The study employs a quantitative approach, utilizing financial and non-financial data from a sample of 18 Iraqi banks listed on the Iraq Stock Exchange for the period from 2021 to 2023. The study examines how firm characteristics (return on assets, firm size, leverage, firm age, working capital, liquidity ratio, and growth rate) and the level of accounting disclosure transparency affect the competitive position of the sample banks. The results indicate that firm characteristics, including size, leverage ratio, age, working capital, and liquidity ratio, have a positive impact on their competitive position. However, no significant impact was found for return on assets, firm age, and growth rate on their competitiveness. The results also show that six firm characteristics have a significant impact on the transparency of accounting disclosure in the sample bank. The indicators of return on assets, firm size, firm age, liquidity ratio, and working capital have a positive effect on the transparency of accounting disclosure, while leverage is negatively related to the transparency index of accounting disclosure. The results also show no significant impact of growth rate on the transparency of accounting disclosure in the sample companies. These findings underscore the importance of effective accounting disclosure practices in enhancing stakeholder confidence and strengthening the competitive position in the Iraqi banking sector. Policy implications suggest that regulatory reforms and the adoption of technology can enhance transparency in accounting disclosures, thereby further enhancing competitiveness.