2024, Vol. 7, Issue 1

The research intends to analyze the impact of corporate excess disclosure on the quality of financial reporting and its reflection in investor decisions in the local environment of Iraqi banks. The research objective was pursued through the implementation of an experimental approach, with data being gathered via informational content analysis of reports derived from the annual financial statements of a sample of 12 banks listed in the Iraq Stock Exchange for the period of 2012 to 2021. A checklist was employed to gather data on corporate excess declaration, while profits quality was utilized to assess the accuracy and reliability of financial reports. Additionally, earnings multiples were employed to suggest investment decisions targeting the banks in the research sample. The research yielded various findings, with the most significant being that the disclosure of corporate surplus in accounting has a favorable impact on enhancing the quality of financial reporting. Furthermore, this disclosure greatly increases the appeal of the institutions in the research sample to potential investors. The findings also validated that the disclosure of company excess would have a more significant impact on investor decision-making when financial reporting quality acts as a mediator.