The Effect of Narrative Disclosure on the Cost of Capital in Light of the Adoption of the (IFRS9) Standard: An applied study on a sample of Iraqi banks


The research aims to demonstrate the impact of narrative disclosure on the cost of capital in light of the adoption of the (IFRS9) standard. The research examined and tested the relationship between variables in a sample of (12) banks listed in the Iraqi Stock Exchange. For the period from (2011-2020), with a rate of (120) views, with a dependence on data (2021), and the net profit for the year (2022) was estimated using (Forecasting: Time Series Expert Modeler). The narrative disclosure was measured by using content analysis for the information included in the financial reports. For the research sample banks, while the cost of capital was measured according to the weighted average cost of capital equation, and the IFRS9 standard was measured by giving it the value (1) when banks applied the IFRS9 standard, and the value (0) when the standard was not applied. A set of practical results have been reached, including a positive correlation between the adoption of the IFRS9 standard and the narrative disclosure (for each of its dimensions), and a negative correlation with significant significance between the narrative disclosure and the IFRS9 standard on the one hand and the cost of capital. On the other hand, it was also found that there is a significant effect of the stander (IFRS9) on both the cost of capital and narrative disclosure. Which prompted the researchers to recommend the need for banks to be familiar with the requirements of applying the IFRS9 standard. In order to benefit from the desired advantages of its application in terms of increasing the ability of narrative disclosure to reduce the cost of capital by disclosing more Future information, sustainability information, development information, knowledge and general information about the bank's excellence.