Financial and accounting compliance performance and its impact on user confidence: An analytical study of a sample of financial information users in financial markets.

Abstract

 Financial and accounting compliance plays a fundamental role in enhancing the quality of financial information, which contributes to building trust among users of financial reports, such as creditors, investors, and regulatory bodies. The higher the level of adherence to accounting standards, the greater the confidence in the credibility of financial data. This, in turn, positively influences users’ decision-making processes and contributes to strengthening a company’s reputation in financial markets. The present study aims to examine the role of compliance performance in enhancing users’ trust by measuring the extent to which financial and accounting compliance affects users’ decisions. The study adopts a descriptive-analytical approach by testing the main research hypothesis, which states that there is a statistically significant effect of financial and accounting compliance on users’ trust in financial information. To achieve the objectives of the study, a questionnaire consisting of 55 items was designed and distributed to a sample of relevant entities in order to assess respondents’ awareness of the role of financial and accounting compliance. The findings indicate that non-compliance or manipulation of financial information leads to a loss of trust, increased risk, and a decline in investment levels. Conversely, compliance contributes to fostering an ethical work environment, strengthening sound corporate governance, enhancing the effectiveness of risk management systems, and reinforcing internal control mechanisms. The study sample was selected using a simple random sampling method and included users of financial information and employees of companies listed on the Iraq Stock Exchange. The sample size comprised 55 participants to ensure adequate representation and reliable statistical analysis. Descriptive statistical methods, including means, standard deviations, and variance, were employed to describe the characteristics of the sample.