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Cybersecurity disclosure, digital transformation, and financial reporting quality: Evidence from GCC countries

WSEAS Transactions on Business and Economics | 2026

Paper Details

Authors: Khalaf A.J.; Suwaid M.A.; Jasim S.R.; Sadaa A.M.; Jihane G.; Abdullah R.A.; Harhoch H.K.

DOI: 10.37394/23207.2026.23.17

Journal: WSEAS Transactions on Business and Economics

Year: 2026

Publisher: World Scientific and Engineering Academy and Society

Document Type: Article

Open Access: All Open Access; Gold Open Access

Cited by: 1

Abstract

This study aimed to measure the impact of cybersecurity risk disclosure and digital transformation on financial reporting quality (FRQ), as well as the moderating effect of digital transformation. The study included 183 banks operating in the Gulf Cooperation Council (GCC) countries for the period 2019-2024. The study utilized a multi-step analysis using Stata. The results showed that cybersecurity risk disclosure is positively related to FRQ. Digital transformation also directly enhances the reliability of financial reports while enhancing the positive impact of cybersecurity risk disclosure on FRQ. Therefore, transparent cybersecurity risk disclosure and digital transformation are strategic tools capable of building investor confidence and reducing information asymmetry. Decision-makers and regulators in the GCC should encourage enhanced disclosure frameworks and digital technologies as catalytic and complementary tools to improve the quality of financial reporting. This study provides clear insights into the complementary roles of cybersecurity disclosure and digital transformation on FRQ. © 2026, World Scientific and Engineering Academy and Society. All rights reserved.

Keywords

Current accruals; Cybersecurity disclosure; Digital transformation; Discretionary accruals; Financial reporting quality; GCC countries; Non-financial companies