The effect of applying proactive disclosure on the quality of financial reports ( An applied study of a sample of companies listed in the Iraqi Stock Exchange

Abstract

The research aims to identify the basic concepts of proactive disclosure and modern trends that call for companies’ management to show useful information in making economic and investment decisions, identify the surrounding risks that may occur to investors, and also clarify the impact of proactive disclosure on financial reports. The research problem is the delay that occurs by the board of directors to approve the financial information or the general assembly of his company, and then the auditor’s report, which takes a long time up to several months. Where the loss of financial information leads to its benefit and is inappropriate, and this delay leads to obstructing it and affecting the work Many users of this information, and therefore the role of proactive disclosure comes in disclosing financial information that will affect investors' decisions through proactive disclosure that contributes to affecting the quality of financial reports. The research was based on a basic premise that "proactive disclosure contributes to affecting the quality of financial reports. Also, there is a significant correlation relationship between proactive disclosure and financial reports." Especially those with a direct relationship with the company, as well as proactive disclosure reduces the effort and cost as it depends on the internal reports prepared in advance and announced interim and the planning reports for the comprehensive budgets prepared internally. Because of its great importance in rationalizing investment decisions