The Impact Management Commentary Report in Reduce Information Asymmetries at Iraqi Stock Exchange

The research aims at show the impact of management commentary report (MC) in Information Asymmetries ؛ By analyzing the annual financial reports of a sample of banks listed on the Iraq Stock Exchange (the regular market), their number reached (11) bank for the period (2009-2018). MC measured through the management commentary Index (Ma.Co.I) which consists of (88) item distributed on four axes according to the elements of the content of MC report, which are business model, operating environment and risks, strategy and performance, financial position and progress. To measure Information Asymmetries, stock return volatility measure was used. The results of the research reached the absence of an acceptable level of reporting in MC report and for the period of the research sample, which leads to a phenomenon Information Asymmetries and thus leads to an increase in the cost of financing for companies and reducing the efficiency of financial markets. The results of the research also found that there is a negative impact of MC report in the Information Asymmetries This makes MC report impact ive mechanism in reducing Information Asymmetries. MC Report contributes to limiting Information Asymmetries, so the Iraq Securities Commission should give importance to the possibility of adopting MC Report by the listed companies for its effective role in providing useful information to the parties involved, especially for shareholders outside the company and potential capital providers.