This research investigates the mediating role of Accounting Information Relevance (AIR) in mitigating Information Asymmetry (IA) through the implementation of Information Technology Governance (ITG) practices within the context of private commercial banks in Iraq. IA is a persistent concern in financial markets and firms, as it can lead to adverse consequences such as agency problems and reduced efficiency. The sample for this research comprises 99 employees from five private commercial banks operating in Iraq, and data analysis is conducted using the Smart PLS. By focusing on the unique setting of Iraq's private banking sector, this research contributes to the existing literature by shedding light on the effectiveness of ITG practices in a transitional economy. The research hypothesizes that the implementation of ITG practices positively influences the reduction of IA within these banks. Moreover, it proposes that AIR serves as a mediating mechanism, whereby the enhanced ITG practices lead to more relevant and timely accounting information, subsequently reducing IA. The findings of this research have implications for both scholars and practitioners in the fields of finance, accounting, and ITG. By examining the mediating role of AIR, this research finds that the combined relationship between ITG, AIR, and IA did not produce statistically meaningful outcomes in our examination. This suggests that the combined impact of these variables might not follow a linear pattern or could be contingent on specific contextual factors. It is possible that further investigation is necessary to elucidate the subtleties of this relationship.

Paper type: Research paper