The Role of Accounting Measurement and Disclosure of Social Capital in Improving Financial Performance
DOI:
https://doi.org/10.25007/ajnu.v12n4a1698Abstract
This research aims to investigate the role of accounting measurement and disclosure of social capital (AMDSC) in improving financial performance (FP) in industrial companies in the Kurdistan Region of Iraq-Sulaimani City (KRG). This study uses SPSS to analyze the questionnaire that was sent to 10 industrial companies operating in the iron sector during 2021. Since there is no financial indicator to measure social capital, but it can be measured through a questionnaire at the individual level, therefore this paper uses a questionnaire for this purpose. The outcomes disclose that AMDSC has a significant effect on improving the FP of industrial companies in KRG. SC has a significant influence on FP as it is approved. Thus, this suggests that SC needs to be considered in the companies’ strategy to secure future financing in this area. This paper is limited to the iron sector of KRG/Sulaimani city. Future studies could address other fields, such as management, for instance, the effect of SC in business management or sharing knowledge. Or financial accounting, for example, the role of SC in improving profitability or liquidity, and so on. This paper focuses on improving financial performance in industrial companies in KRG and Sulaimani City through considering social capital in their companies’ strategies, as there was no concern for SC in KRG before.
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