Determining the Impact of Voluntary Disclosure on the Cost of Capital a Practical Study on Iraq Stock Exchange

Abstract

Abstract Cost of capital is once of important subjects that financial firms should take into consideration because whenever cost of capital decrease it will give financial firms more flexibility in competition and maximizing market value of companies, as a result it will maximizing the wealth of owners. This research focused on determining the Impact of voluntary disclosure on the cost of capital through preparing a comparative study between the financial reports for a number of banks in 2014, through the analysis of correlation and simple regression to prove the existence of relationship or influence between variables or not.It reached that by applying voluntary disclosure is reducing cost of capital for financial firms, as a result will give the firms more area to compete. Researchers recommended encouraging financials companies on importance of voluntary disclosure because of its impact in increasing transparency in the presentation’s details of companies' works, and help inside and outside investors to know the real situation of a company.