The Impact of Accounting Disclosure of Forward-Looking Information Through Integrated Reports on Enhancing the Performance of Commercial Banks in Yemen

Abstract

This study aimed to investigate the accounting disclosure of forward-looking information through integrated reports. It also sought to clarify the extent of disclosure of this information in Yemeni commercial banks and its impact on their financial and operational performance. A representative sample of (9) commercial banks from the Yemeni banking sector was selected, and the annual reports issued by these banks were analyzed for the period from 2015 to 2022. To achieve the study's objectives, a descriptive-analytical approach was used.

The study concluded with several key findings, including: The existence of an impact of accounting disclosure of forward-looking information through integrated reports on enhancing the financial performance of commercial banks in Yemen, and no impact on operational performance. The lack of full and transparent disclosure of future financial and non-financial information or future risks facing the banking sector in Yemen.

The study recommended the importance of establishing a framework and guiding principles in the Republic of Yemen for banks regarding the accounting disclosure of forward-looking information, in accordance with the International Integrated Reporting Council (IIRC) guidelines. It is also recommended that commercial banks should develop and disclose future plans to achieve their objectives and confront risks. Additionally, the study recommended training and qualifying bank employees to help them move towards the gradual application of integrated reporting requirements.