THE IMPACT OF DISCLOSING SUSTAINABILITY REPORTING

Abstract

This study aims to understand the influence of sustainability reporting on investor perception by analyzing sustainability disclosure from three dimensions: environmental, economic and social. The study used a expressive method to develop a theoretical framework and an experimental (applied) approach to analyze financial data obtained from the yearly reports of ten (10) banks registered on the Iraqi Stock Exchange from 2011 to 2021. Sustainability reporting was measured using indicators representing the number of sentiments disclosed by investors, measuring investor disclosure price-to-earnings (P/E) ratio and stock turnover. To investigate the relationship between the variables, several mathematical and statistical approaches were used, counting the arithmetic mean, standard deviation, correlation coefficient, and linear regression models, using SPSS software (version 24). The study results showed that sustainability reporting improves investor sentiment according to both measures (the P/E ratio and stock turnover). The social dimension emerged as the most influential and statistically significant. In contrast, the environmental dimension presented a negative influence only on the price-to-earnings ratio, while the economic dimension did not show statistical significance for either measure.