The Role of Financial Accounting in Supporting Investment Decision-Making and Achieving Financial Sustainability: An Applied Study on a Sample of Banks Listed in the Iraq Stock Exchange
Downloads
This research studied how financial accounting helps banks in Iraq make better investment decisions and stay financially stable. The study focused on five banks listed in the Iraq Stock Exchange and collected data from 209 employees working in accounting, finance, and investment departments. The goal was to see if financial reports and accounting systems are really used in practical decision-making or just treated as routine work. A questionnaire was designed with questions about three main variables: financial accounting (independent), investment decision-making (dependent 1), and financial sustainability (dependent 2). The results showed that financial accounting has a strong and positive effect on both investment decisions and financial sustainability. Employees agreed that accounting information helps with planning, risk assessment, and budget control. Regression analysis proved that accounting explains more than 50% of the changes in the two dependent variables. Diagnostic tests confirmed the models were valid, and the data was reliable and consistent. The study recommends that Iraqi banks improve the quality and use of accounting reports to support better financial choices and long-term planning. It also encourages more staff training and better systems for data sharing and transparency.
Al Muhairi, M., & Nobanee, H. (2019). Sustainable financial management. Available at SSRN 3472417.
Al Refiay, H. A. N., Abdulhussein, A. S., & Al Shaikh, S. S. K. (2022). The impact of financial accounting in decision making processes in business. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 7(4), 7.
Aladwan, M. (2024). Sustainable accounting information and enhancement of quality for financial decision making. International Journal of Productivity and Quality Management, 43(4), 440-458.
Azmat, F., Jain, A., & Michaux, F. (2022). Strengthening impact integrity in investment decision-making for sustainable development. Sustainability Accounting, Management and Policy Journal, 13(1), 55-87.
Daniyal, D., & Tukiran, M. (2024). THE ROLE OF FINANCIAL MANAGEMENT IN LONG-TERM INVESTMENT DECISION MAKING (LITERATURE REVIEW). International Journal of Multidisciplinary Research and Literature, 3(6), 791-801.
Fakdawer, N. S. (2024). The role of accounting practices in advancing the agenda of green finance and impact investing. Advances in Applied Accounting Research, 2(2), 94-109.
Gardi, B., Abdalla Hamza, P., Sabir, B. Y., Mahmood Aziz, H., Sorguli, S., Abdullah, N. N., & Al-Kake, F. (2021). Investigating the effects of financial accounting reports on managerial decision making in small and medium-sized enterprises. Bawan Yassin and Mahmood Aziz, Hassan and Sorguli, Sarhang and Abdullah, Nabaz Nawzad and Al-Kake, farhad, Investigating the Effects of Financial Accounting Reports on Managerial Decision Making in Small and Medium-sized Enterprises (April 28, 2021).
Hasan, I. N., Ahmed, M. S., & Ali, O. H. (2024). The Role of Sustainable Disclosure in Enhancing the Efficiency of Investment Decisions for Companies Listed on the Financial Market. American Journal of Economics and Business Management, 7(5), 73-83.
Kimmel, P. D., Weygandt, J. J., Mitchell, J. E., Trenholm, B., Irvine, W., & Burnley, C. D. (2023). Financial accounting: tools for business decision making. John Wiley & Sons.
Makarenko, I., & Plastun, A. (2017). The role of accounting in sustainable development. Accounting and Financial Control, 1(2), 4-12.
Mohammed, M. M. (2024). THE IMPORTANCE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING PROCESS (Doctoral dissertation, SAKARYA UNIVERSITY).
Moridu, I. (2023). The impact of financial statement quality on investment decision making: A descriptive study of the banking sector in West Java. The ES Accounting and Finance, 1(03), 169-175.
Nicholls, J. A. (2020). Integrating financial, social and environmental accounting. Sustainability Accounting, Management and Policy Journal, 11(4), 745-769.
Olanrewaju, O. I. K., Daramola, G. O., & Ekechukwu, D. E. (2024). Strategic financial decision-making in sustainable energy investments: Leveraging big data for maximum impact. World Journal of Advanced Research and Reviews, 22(3), 564-573.
Siegrist, M., Bowman, G., Mervine, E., & Southam, C. (2020). Embedding environment and sustainability into corporate financial decision‐making. Accounting & Finance, 60(1), 129-147.
