THE ACCOUNTING TREATMENT OF THE LEASE ENDING WITH OWNERSHIP STANDARD FOR ISLAMIC ACCOUNTING STANDARD NO. (8) (32) AND ITS IMPACT ON TRANSPARENCY AND ACCOUNTING DISCLOSURE (A PROPOSED MODEL)

The proposed research will examine how board characteristics relate to corporate social responsibility (CSR) in Commercial Banks listed on the Iraq Stock Exchange (ISX), in 2014-2023. Based on the agency theory, stakeholder theory and resource dependence theory, the study will assess the role of the board size, board independence, CEO duality and the gender diversity in influencing the involvement of the firm in socially responsible practices. A sample of 20 industrial firms, which included the financial and governance data and CSR indicators, was analyzed using a quantitative approach based on a panel data analysis.

The results prove that board governance has a great influence on CSR performance. The CSR has a positive relationship with the larger boards and greater independence of the boards, which is the advantages of the increased expertise and monitoring ability. Interestingly, the duality of the CEOs showed a positive and significant impact, indicating that in the aftermath of the conflict in Iraq, the concept of the unification of leadership can expedite the process of strategic CSR decision-making amid the classical agency theory issues. The positive and statistically weak effect of gender diversity on boards was observed, which means that the low presence of women in the boards continues to be a hindrance to the full utilization of diversity in the boardroom.

Control variables also reiterate the fact that companies with higher financial opportunities and better operating cash flows are more prolific in their social and environmental activities and high leverage and accrual-based earnings management are related to less CSR activity. These findings depict the dual significance of good governance and financial soundness in enhancing sustainable and ethical conducts of business.

The research works will add to the existing body of international research on CSR and governance by giving empirical data on a very unexplored and developing market and highlighting the necessity of governance reforms to promote CSR and long-term sustainability in the Iraqi industrial sector.