Optional Financial Information Reporting and Sustainable Strategic Financial Performance Metrics: An Analysis of Correlations and Institutional Differences in the Iraqi Banking Sector

The growing demand for credible financial and non-financial disclosures has intensified the need to understand their impact on bank performance. However, there is a lack of comprehensive understanding regarding how optional financial disclosures affect bank performance, which presents a key challenge in emerging markets. The objective of this study is to examine how optional financial information reporting influences sustainable strategic financial performance in the Iraqi banking sector. The study used secondary data, and multiple analyses were conducted. While the results revealed a statistically significant positive relationship between optional financial information disclosure and profitability (r = 0.779, P = 0.035), as well as forward-looking expense/revenue reporting and liquidity (r = 0.725, P = 0.060). Capital adequacy emerged as the only performance measure with a statistically significant difference across the banks (χ ² = 7.200, P = 0.027), reflecting varying regulatory capital management approaches. While banks prioritized public and shareholder information, CSR reporting scored the lowest. The study underscores the strategic value of CSR reporting in specific dimensions and transparency in promoting the financial stability and stakeholder confidence, and provides suggestions for the banking institutions, regulators, and the government. This research contributes to understanding how context-specific CSR reporting practices impact sustainable performance in emerging markets.