The Impact of Climate Change Risk Disclosure According To IFRS:S2 In Company's Value

Abstract

This research aims to know the extent of the impact of climate change risk disclosure on the company's value. The scientific importance of the research is that disclosing these risks helps in knowing the effects of these risks on the company's financial position. To achieve this goal, the researcher sent an electronic questionnaire (Google Form) to a sample consisting of academics, accountants, auditors, certified public accountants, auditors, financial managers and audit managers at the University of Karbala, Warith Al-Anbiya University, Al-Zahraa University for Girls, accounting offices and some Iraqi companies listed on the Iraq Stock Exchange. The electronically retrieved forms amounted to (155) valid forms for analysis. A set of statistical methods were used to achieve the research objective and reach the desired results; including: descriptive analysis of the questionnaire sample data using Excel, as well as a simple regression model using the SPSS V.26 statistical program to test the conditions of the simple mediation model. In addition, structural equation modeling (simple mediation model) using the JASPER V.0.18.3 statistical program to test the effect of the independent variable (disclosure of climate change risks) on the dependent variable (company value). The results showed a positive effect of disclosing climate change risks on the company value, which indicates the importance of disclosing these risks in order to maximize the company's value and make rational decisions with high returns versus low risks.