GOVERNANCE THROUGH TRANSPARENCY: HOW INFORMATION DISCLOSURE SHAPES THE COST OF CAPITAL IN IRAQ

Abstract

This paper investigates the impact of mandatory and voluntary information disclosure practices on the cost of capital among companies listed on the Iraq Stock Exchange, and situates these dynamics within the broader context of local governance and regulatory policy. Using a quantitative and applied research design, data from 33 listed firms during 2019–2023 were analyzed through multivariate regression models to assess the effects of disclosure on financing costs. The findings demonstrate that enhanced disclosure practices significantly reduce the cost of capital, thereby reinforcing transparency, financial accountability, and investor confidence. These results hold important implications for policymakers, regulators, and local government authorities concerned with strengthening corporate governance frameworks, improving financial reporting standards, and promoting efficient capital markets. The study concludes that effective disclosure policies and robust regulatory frameworks not only lower financing costs but also contribute to sustainable development of sub-national financial systems and local economic governance.