Effect of reporting management commentary on financing cost An applied study in the Iraqi industrial companies listed on the Iraq Stock Exchange


  • Asaad Muhammad Ali Wahhab Al-Awad University of Karbala, Faculty of Management and Economics
  • Karar Salim Abdel Zahra Hameedi University of Kufa, Faculty of Administration and Economics




financing cost, Iraqi industrial companies


The research aims to study the intellectual and practical impact of reporting management commentary on financing cost by applying to 109 views (company / year) in the Iraqi industrial shareholding companies listed on the Iraq Stock Exchange for the period from 2010-2019.

 The research variables were measured quantitatively, as an indicator was developed to assess the level of reporting on management commentary, and the weighted cost of funding was used, and with the help of the SPSS statistical package program, the validity of the data for statistical analysis was verified through normal distribution tests, free from linear interference, and weak correlation. The study hypotheses were tested by using multiple linear regression.

Among the most important findings of the research is that there is a common discrepancy between local and international rules related to reporting management commentary, the pattern of administrative reporting reports in Iraqi companies, the lack of employment and benefit from them, their lack of forward-looking information, and a very significant decrease in the rate of reporting on management commentary. Despite the low level of reporting on management's comments that it had a direct effect on the cost of equity financing, the effect of reporting management comments on the cost of borrowing has not been proven.

Based on the previous results, the research recommends the necessity for the bodies organizing the work of the accounting profession in Iraq to review and revise the accounting rule No. 6 in light of the international practice statement. And the necessity for the external auditor to audit the management comments report and discuss the paragraphs affixed therein by management. And the necessity for the companies' management to develop the comments report in light of the opportunities and risks, and to employ it in difficult times. And the necessity of conducting awareness sessions for investors and financial analysts of the importance of the information contained in the list of management comments and educating them on quantitative models to measure the cost of equity financing.


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How to Cite

Al-Awad, A. M. A. W. and Hameedi, K. S. A. Z. (2023) “Effect of reporting management commentary on financing cost An applied study in the Iraqi industrial companies listed on the Iraq Stock Exchange”, Al-Ghary Journal of Economic and Administrative Sciences, 17(3), pp. 336–366. doi: 10.36325/ghjec.v17i3.13774.

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