The Impact of Financial Statement Comparability on Information Asymmetry and Its Reflection on Investment Decisions An Empirical Study of a Sample of Iraqi Banks

Abstract

This study examines the impact of comparability in financial statements on information asymmetry and investment decisions, focusing on a sample of 10 Iraqi banks over the period from 2020 to 2024.

The study used financial and non-financial data, with comparability assessed using De Franco's (2011) model, while information asymmetry was measured using financial analysts' forecasts. Investment decisions were assessed using Biddle et al.'s (2009) model.

The results showed that increasing comparability reduces information asymmetry, suggesting that improving comparability reduces information gaps among investors. The study also found a positive relationship between comparability and investment decisions, highlighting the importance of enhancing transparency and financial disclosure standards.