Cover
Volume 7, Issue Speical 7 (2026)

Published: November 5, 2026

Pages: 78-86

Research Article

The Governance Role of International financial reporting standards in Promoting Sustainable and Equitable Value Creation

Emad Kendory 1
1Accounting, Faculty of Administration and Economics, Al-Mustansiriyah University, Baghdad, Iraq
History
  • Received: August 15, 2026
  • Available Online: November 5, 2026
DOI

https://doi.org/10.56967/ejfb20261016

Abstract

This study evaluates how International financial reporting standards (IFRS) can control the development of sustainable and fair value of economic entities through the governance role. Following the growing dynamism of the global business world and the growing demands of transparency and accountability, the International Financial Reporting Standards (IFRS) that have been created by the International financial reporting standards Board (IFRSB) are now instrumental to the quality of financial reporting and accruing greater investor and stakeholder trust. In addition, the implementation of these standards in the framework of the effective governance system also helps in enhancing financial and non-financial disclosure concerning sustainability that helps in attaining the long-term value taking into account both economic, social and environmental aspects. The methodology in the study was descriptive-analytical. The sample size of 50 accountants and auditors of different companies was employed to create data using a questionnaire. Analytical data was conducted on the basis of SPSS software and path analysis models. The research model contained three key variables namely, the governance role of IFRS, which serves as the independent variable, the quality of disclosure and transparency, which relates to sustainability as the mediator variable, and the generation of sustainable fair value as dependent variable. The findings showed the direct and indirect influence of governance on sustainable value creation wherein disclosure quality was a partial mediator in such a connection. The results indicate that when corporate governance is combined with the use of international standards, the transparency and corporate responsibility increase and this adds to the long-term corporate value as well as supporting sustainable development and equity among the stakeholders.

Keywords

References

  1. Šuvakov, P., & Sekicki, V. (2025). Contemporary trends in the standardization of accounting and auditing at the international level. Journal of Agronomy, Technology and Engineering Management, 8(1), 1411-1428.
  2. Akisik, O., & Gal, G. (2011). Sustainability in businesses, corporate social responsibility, and accounting standards: An empirical study. International Journal of Accounting & Information Management, 19(3), 304-324.
  3. Akinsola, K., & Taofeek, A. (2025). The Role of Corporate Governance in Enhancing Investor Confidence and Promoting Financial Market Stability: Legal Perspectives and Practical Solutions. Article in International Journal of Accounting, 3(2), 1-23.
  4. Amelio, S. (2016). The connection between IFRS/IFRS and social responsibility. Management Dynamics in the Knowledge Economy, 4(1), 7-30.
  5. Palymbetova, L. (2025). Accounting for sustainability in banking: Role of IFRS and macroeconomic determinants in ESG performance. International Journal of Business and Management (IJBM), 4(3 [Special Issue]), 1-14.
  6. Bulyga, R., Melnik, M., Safonova, I., & Gisin, V. (2023). A model of ESG-transparency index in corporate reporting. MGIMO review of international relations, 16(3), 56-80.
  7. Zaro, E. S. (2019). Cost of capital and voluntary disclosure of integrated reporting: the role of institutional factors (Doctoral dissertation, Universidade de São Paulo).
  8. Ombai, P., Kiflemariam, A., & Odollo, L. (2024). Financial and Non-Financial Information on Strategy Management Process; A Systematic Literature Review. Journal of Strategic Management, 8(1), 33-64.
  9. Adams, C. A. (2017). Conceptualising the contemporary corporate value creation process. Accounting, Auditing & Accountability Journal, 30(4), 906-931.
  10. Afriyie, S. O., Kong, Y., Ampimah, B. C., Akuamoah, C. D., Vanderpuije, L. N. O., & Xinlei, Z. (2020). Verifying the impact of corporate governance on hospital performance on HIV and malaria control: A structural equation modelling approach. The International journal of health planning and management, 35(1), 22-35.
  11. Băndoi, A., Bocean, C. G., Del Baldo, M., Mandache, L., Mănescu, L. G., & Sitnikov, C. S. (2021). Including sustainable reporting practices in corporate management reports: Assessing the impact of transparency on economic performance. Sustainability, 13(2), 940.