The Role of Corporate Governance on Reducing Information Asymmetry: Mediating Role of International Standards for Accounting (IAS, IFRS)
Department of Accounting, College of Administration and Economic, University of Salahaddin, Hawler, Kurdistan, Iraq
Zubir Azhar
School of Management, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia
Aram Jawhar Mohammad
Department of Accounting Techniques, Erbil Technical Administrative College, Erbil Polytechnic University, Erbil, Iraq
Abstract
Asymmetric information has become an international issue requiring the attention of governance, recent studies, and policymakers. So, the present article examines the role of corporate governance in reducing asymmetric information of oil companies in Iraqi Kurdistan. The study also examines the mediating role of international standards for accounting (ISA) among corporate governance and reducing asymmetric information of oil companies in Iraqi Kurdistan. The study gathered data from the accounts department of the oil industry in Iraqi Kurdistan using survey questionnaires. The study applied the smart-PLS to check the data validity and association among variables. The outcomes revealed that corporate governance helps in reducing asymmetric information of oil companies in Iraqi Kurdistan. The results also revealed that the ISA significantly mediates among corporate governance and reducing asymmetric information of oil companies in Iraqi Kurdistan. The policymakers could avail the guidelines regarding reducing asymmetric information using effective corporate governance and effective implementation ISA