Iraqi Governance Committees Linked to Greater Financial Disclosure

Audit and risk committees were positively associated with financial disclosure among companies listed on the Iraq Stock Exchange, according to a quantitative study of 19 firms examined from 2018 through 2022. The findings point to particular oversight structures, rather than board structure alone, as correlates of more complete corporate reporting, but the research does not establish that any governance mechanism caused the observed differences.

The researchers assembled 95 firm-year observations and measured financial disclosure with a structured index derived from annual reports. Using agency theory and stakeholder theory as conceptual foundations, the study examined how internal governance arrangements and external auditor opinions relate to disclosure in Iraq’s emerging-market business environment. The governance variables covered board structure, managerial ownership, ownership concentration, the presence of audit, remuneration and risk committees, and the external auditor’s opinion.

Audit committees, risk committees, remuneration committees and unqualified audit opinions each had positive relationships with the disclosure measure. Ownership concentration was negatively associated with transparency, whereas board structure did not show a statistically significant effect. These are observed associations across the sampled firm-years, not measurements of disclosure changes following the introduction of a particular governance arrangement. The comparison also does not show that dispersed ownership would necessarily improve reporting or that a formal board feature would be ineffective in every Iraqi listed company.

The results add empirical evidence about corporate governance and disclosure in a market characterized by institutional and regulatory constraints. The annual-report index and multiple governance indicators provide a quantitative view of how oversight arrangements vary alongside financial transparency. However, the sample was limited to 19 listed companies, the observation period covered five years, and the observational design restricts causal conclusions and broader generalization. The article appeared as an early accessible version in Humanities and Social Sciences Communications on 9 October 2026 and was described as subject to further editorial revision before the final version of record.

Subject of Research: Corporate governance mechanisms and financial disclosure among firms listed on the Iraq Stock Exchange

Article Title: The impact of governance on strengthening audit practices and promoting financial transparency: an empirical investigation in the Iraqi business context

Article References: Al-tameemi, F. S. J. (2026). The impact of governance on strengthening audit practices and promoting financial transparency: an empirical investigation in the Iraqi business context. Humanities and Social Sciences Communications. https://doi.org/10.1057/s41599-026-08637-3

Image Credits: AI Generated

DOI: 10.1057/s41599-026-08637-3

Keywords: corporate governance, financial disclosure, audit committees, risk committees, remuneration committees, ownership concentration, board structure, Iraq Stock Exchange, annual reports, emerging markets, impact, governance