This study seeks to investigate the correlation between the extent of disclosure of the digital transformation indicator (DTI) by commercial banks listed on the Iraqi Stock Exchange and the presence of information asymmetry. In order to accomplish this, a thorough examination of the literature review was conducted to formulate the study hypotheses. A practical study was also carried out on a sample of 15 banks for the period 2018–2023. Even though Iraqi banks are just starting to implement digital transformation disclosure, the study's findings indicate that the digital transformation disclosure index has a positive impact on reducing information asymmetry. Other variables such as bank size, efficiency, capital adequacy, liquidity, and profitability also exhibit this effect. Furthermore, we found a significant percentage of 0.529 for the multiple correlation coefficient between the model variables. This suggests a strong correlation between the study variables.