Green disclosure and its impact on the quality of financial reports and investment decisions

Abstract

      Green disclosure is of great importance in demonstrating the extent of companies' commitment to the laws and standards related to such disclosure. The research aims to define green disclosure and demonstrate its impact on improving the quality and transparency of financial reports, its impact on the qualitative characteristics of disclosed information, and its impact on enhancing the confidence of users of financial statements. The descriptive approach was adopted in the theoretical aspect of the research, and the inductive approach was adopted through a questionnaire of the opinions of a special sample and its analysis using the statistical program (SPSS). The conclusions were that there is an importance for green disclosure in improving the quality of financial reports, and that reports prepared in accordance with green disclosure reduce the risks of relying on the data contained therein when making decisions. In the practical aspect, the conclusions showed a statistically significant relationship between green disclosure and improving the quality of financial reports, as well as a relationship between green disclosure and investment decisions. The recommendations came to pay attention to green disclosure and that financial reports reflect the reality of companies' practices and the extent of their compliance with their laws and standards.