The Effect of Financial Reporting Quality on a Firm Value Applied study on a Sample of Traded companies in Iraqi stock Exchange

Abstract

The financial reporting concept refers to the activities practiced by the economical units so as to provide and submit the accounting financial information concerning its activities to the other beneficiary groups . such purposes the accounting information must obtain a high level of quality deduced form the specific characteristics of such information . The main concern and interest were focused on studying and analyzing the role of the quality of the financial reporting in the firm’s value since one of the goals of the financial reporting is providing useful information to the investors the present and the future – and other users to help them in the evaluation of the degree of uncertainty surrounding the cash gains expected from the interests and distributions. The present study aimed at the identification of the quality of the financial reporting and its influences on the firm’s value and the relationship between them.The main concern of this study is to prove the relationship of the quality of the financial reporting and its effect on the value of the firm depending on the practical and theoretical approaches practiced on sample of companies listed in the Iraqi stock market.The importance of this research is clearly shown through the explanation of the effect of raising quality of the financial reporting on the firm’s value, which is regarded ad one of main factors of its success in the financial market.Accordingly, the research depended on a main hypothesis directed towards testing the effect and the relationship between the quality of the financial reporting and the value of the firm in the study under discussion. The most Important results reached so for found that there is a relationship and a positive effect for the variance of the quality of the financial reporting in the value of companies under study the sample of.