Abstract: This study investigate the impact of information asymmetry based on the quality of financial reporting on the investment efficiency in the Iraq Stock Exchange using a sample of 178 observations in the time period 2015-2017. Our findings lead to a significant negative relationship between financial reporting quality and the underinvestment and overinvestment which lead to a significant positive relationship between financial reporting quality on Iraq Stock Exchange. This means that higher financial reporting quality increase the ability of investors to monitor the management which lead them to invest on the projects which have the positive net present value.
Ahmed Abbas Al-Behadili, Qabas Abdulrazzaq Ahmed Alsalmani, Hassan Nayab Dhahi and Thamer Kadhim Al-Abedi, 2019. Information Asymmetric, Financial Reporting Quality and Investments Efficiency: Evidence from Iraq. Journal of Engineering and Applied Sciences, 14: 5869-5874.