The Impact of Integrated Reporting on Improving the Quality of Financial Reporting/ Evidence from Palestinian Banks رسالة ماجستير

Abstract

The study aimed to identify the impact of disclosure of integrated reports on improving the quality of financial reports of Palestinian banks listed on the Palestine Stock Exchange (PSE). In order to complete the study and achieve its objectives, the descriptive approach and the inferential (analytical) approach were used with the application of statistical models to measure the quality of earnings and its relationship to integrated disclosure. The study population consisted of all Palestinian banks listed on the PSE from 2017-2023, which numbered 6 banks, but the PSE and Al-Safa Bank were excluded due to the lack of availability and completeness of some of its data that could be used to measure and calculate the study variables, as it was listed on the PSE in 2022. The results showed a positive and statistically significant relationship between governance and earnings volatility. Other elements such as the business model and performance had positive effects in reducing volatility. Governance also played an important role in enhancing the accrual ratio, while the foundations of preparation and presentation and the business model showed clear negative effects in reducing reliance on accruals. As for the operating cash index, the results revealed that the foundations of preparation and presentation had a strong positive effect, confirming the role of integrated disclosure in enhancing the efficiency of operating cash flows. As for the gap between accounting profit and cash flow, the study showed a significant negative relationship between governance and this gap, reflecting the role of governance in improving the alignment between accounting and cash profits. These results generally indicate that integrated reporting has a fundamental impact on improving the quality of financial reports, as it contributes to increasing transparency, enhancing operational efficiency, and reducing opportunities for financial manipulation. Accordingly, the study recommends adopting integrated reporting as a basic standard for preparing financial reports, with a focus on developing governance elements and preparation and presentation methods to achieve better financial sustainability