The Impact of Accounting Disclosure in Financial Reports on Financial Inclusion: An Applied Study on Commercial Banks in the Green Mountain Region

Abstract

This study investigates the impact of accounting disclosure in financial reports on financial inclusion, through an applied study of commercial banks in the Green Mountain region. The study adopts a descriptive–analytical approach and utilizes a questionnaire developed based on relevant prior studies, after ensuring its validity and reliability. The study population comprises employees of public and private commercial banks, as well as employees of the General Administration of the Commercial Bank and the Financial Stability Unit at the Central Bank of Libya – Al-Bayda.                  

A stratified random sampling technique was employed, resulting in the collection of (102) valid questionnaires suitable for statistical analysis. The findings demonstrate a statistically significant impact of accounting disclosure in financial reports on enhancing financial inclusion, as disclosure facilitates individuals’ and institutions’ access to financial services and improves the efficiency of their utilization. The results further reveal that both mandatory and voluntary accounting disclosure play a vital role in promoting financial inclusion, emphasizing the importance of improving disclosure levels as an effective tool for strengthening financial stability, particularly within the Libyan context.                                                                                                                                  

Moreover, the study concludes that voluntary accounting disclosure represents the most influential factor, as it provides additional information that enhances customers’ trust and contributes to expanding banks’ customer base. Accordingly, the study recommends maintaining compliance with accounting standards related to mandatory disclosure, broadening the scope of disclosed information, and supporting financial literacy programs to raise awareness among financially excluded groups regarding available financial services.