The Role of The Quality of Future Information Disclosure In The Relationship Between The Cost 0f Capital And The Performance of Industrial Companies Listed on The Abu Dhabi Securities Market

Abstract

The study aimed to test the effect of the cost of capital on the performance of industrial companies listed on the Abu Dhabi Securities Market, while introducing the variable of the quality of future information disclosure as a modifying variable and testing its effect on this relationship. To achieve that goal; Secondary data was collected from the annual financial reports of industrial companies listed on the Abu Dhabi Securities Market, which are available on the official website of that market. The number of these companies reached 13 industrial companies listed on the Abu Dhabi Stock Exchange, and the study included a period of 7 years from 2017 to 2023, with a total of 91 observations. The data was analyzed using E-views 10 software.

The results of the study showed that the cost of capital has a negative impact on the performance of companies as measured by the rate of return on assets, and that result indicates that the high cost of capital can limit the company's access to appropriate financing, while the low cost of capital can improve investment opportunities and company growth, and that the introduction of the variable of the quality of disclosure of future information as a modified variable in the relationship between the cost of capital and the performance of companies has Reduce this negative impact. This result indicates that increasing the quality of disclosure of future information improves the performance of companies and reduces the cost of capital, as well as affects investment decisions and competitiveness in the market, so companies must make an appropriate presentation of future information and improve its quality in a way that helps give a comprehensive picture of the future of the company and improves its performance and ability to achieve profits.