Abstract

The research aims to demonstrate the extent of the impact of narrative disclosure on the cost of capital within the Iraqi banking sector, and the research sample included the financial reports of some (12) banks listed in the Iraqi Stock Exchange and for the period from (2011) to (2020) so that the number of observations was (120). Observation, (2021) data and an estimate of net profit for (2022) were adopted to complete the requirements for measuring variables. Narrative disclosure was measured through five dimensions by analyzing the content of the reports disclosed by the research sample. As for the cost of capital, it was measured based on the weighted average equation the cost of capital. The research found a negative significant correlation between narrative disclosure and the cost of capital. As well as a negative and moral effect as well, which means the more banks expand with narrative disclosure, the lower the cost of capital, and the research recommended the need to urge Iraqi banks to disclose information more detailed information about its staff and information about the reputation of the bank. Sustainability information in the bank, which shows its environmental and social position towards society, as it contributes to reducing the cost of capital.

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The article was added to IASJ on 2023-01-08

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