The Impact of optional Financial Information Reporting on Sustainable Strategic Financial Performance: Evidence from Iraqi Banking Sector (2021-2023)

This study examines the impact of Optional Financial Information Reporting (VFID) on Sustainable Strategic Financial Performance (SSFP) in the Iraqi banking sector (2021-2023). Despite significant global focus on transparency, the Iraqi context faces challenges in adopting International Financial Information Reporting Standards (IFRS), including regulatory conflicts, cultural barriers, and limited experience. The study addresses this gap by analyzing how VFID affects key financial metrics such as net profit, equity, and asset growth in three banks (Bank of Baghdad, Ashur Bank, and Investment Bank). Using regression and ANOVA analyses, the study reveals a significant positive relationship between VFID and SSFP, particularly when controlling for institutional heterogeneity. The results highlight that improved optional reporting practices are associated with improved profitability, liquidity, and stakeholder confidence, underscoring the role of transparency in enhancing financial stability and competitiveness. The findings provide critical insights for policymakers and bank managers to strengthen Financial Information Reporting frameworks, align practices with international standards, and foster sustainable growth in Iraq's evolving financial landscape.