The Implementation of Sustainability Accounting Standards on Investors’ Decisions through the Mediating Role of Financial Report Quality

The aim of this research is to analyze and understand the correlation and potential impact between sustainability accounting standards and the quality of financial reports, as well as how this impact may influence investors' decisions. This is achieved by examining how a company's financial and non-financial performance interact and analyzing how sustainability accounting standards affect the accuracy and transparency of financial reports. The study also explores how the inclusion of sustainability information in financial reports influences investors’ decisions regarding investments in companies. To achieve the research objective, three theoretical frameworks were adopted: the Ecology Theory, the Labor Value and Surplus Value Theory, and the Stakeholder Theory. Additionally, data collection and analysis were conducted on a selected sample of investors in industrial companies listed on the Iraq Stock Exchange. Data was obtained through a structured questionnaire. The research reached several conclusions, the most important of which are: There is a significant positive effect of environmental, social, and economic sustainability accounting standards on the quality of financial reports. There is a positive effect of environmental, social, and economic sustainability accounting standards on investors' decisions. The quality of financial reports has a positive impact on investors' decisions.The quality of financial reports plays a mediating role in the relationship between environmental, social, and economic sustainability accounting standards and investors' decisions.