Strategic Impact of IFRS Adoption on Financial Transparency and Institutional Performance: Evidence from the Palestinian Banking Sector

Abstract

This paper examines the strategic impact of the adoption of IFRS on financial disclosure and bank performance: a study in Palestine. The study adopted a quantitative analysis method which is based on secondary data collected from annual financial reports of the banks listed in Palestine Exchange, and provides a comparison analysis between pre-and post-IFRS adoption.. The results indicate that the IFRS-based financial statement better promotes the financial transparency as the depth, precision and comparability of disclosure is elevated, which decreases information asymmetry and gains more trust from stakeholders. In addition, as a result of an institutional improved performance in terms of: profitability, liquidity management and stability of a financial status, firm performance is a vintner in this relationship. The paper also shows how IFRS is more than a reporting tool but a strategic tool to enhance the legitimacy of organizations and the competitiveness of organizations in markets against a backdrop of political constraint: the case of Palestine. Based on the findings, the study recommends continuing focus on compliance with IFRS, the introduction of transparency indicators into performance assessment schemes, tighter regulation, training of financial professionals, and further exploration of the interface among IFRS, digital reporting and governance models.

Keywords: IFRS Adoption, Financial Transparency, Institutional Performance, Palestine.

DOI: 10.7176/RJFA/16-8-03

Publication date: October 31^st 2025