The relationship between corporate governance mechanisms and company attributes and accounting conservatism of Jordanian listed companies

The relationship between corporate governance mechanisms and company attributes and accounting conservatism of Jordanian listed companies

This study examines the relationship between the corporate governance mechanisms related to the ownership structure, board of directors, audit committee and auditor quality along with company attributes and the accounting conservatism of Jordanian listed companies. The theoretical foundation of suc...

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Main Author: Al-Sraheen, Dea'a Al-Deen Omar Nawwaf
Format: Thesis
Language:eng
eng
Published: 2014
Subjects:
HF5601-5689 Accounting
Online Access:https://etd.uum.edu.my/4309/1/s93663.pdf
https://etd.uum.edu.my/4309/2/s93663_abstract.pdf
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institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Fadzil, Faudziah Hanim
Syed Ismail, Syed Soffian
topic HF5601-5689 Accounting
spellingShingle HF5601-5689 Accounting
Al-Sraheen, Dea'a Al-Deen Omar Nawwaf
The relationship between corporate governance mechanisms and company attributes and accounting conservatism of Jordanian listed companies
description This study examines the relationship between the corporate governance mechanisms related to the ownership structure, board of directors, audit committee and auditor quality along with company attributes and the accounting conservatism of Jordanian listed companies. The theoretical foundation of such a relationship was provided by five comprehensive theories which are the agency theory, the positive accounting theory, the resource dependence theory, stewardship and the signaling theory. The data were obtained from the annual reports of 348 Jordanian companies from 2009 to 2011. Upon using the multiple regression analysis, the results show that the relationship between the corporate governance mechanisms and accounting conservatism was somewhat varied. Fifteen hypotheses were developed in this study. Seven of them were significant while eight were not. For ownership structure, institutional and foreign ownership were significant while family and managerial ownership were not statistically significant. Board independence, financial expertise and board tenure were significant, while board size, CEO and multiple directorships were not significant due to the higher level of P-value compared to 0.05. On the other hand, audit committee and auditor independence were statistically significant to conservatism, while auditor brand name, company size and debt contract were reported to be negatively and not significantly related to conservatism. These results indicate that corporate governance plays a vital role in enhancing the level of conservatism and reducing agency conflict. Further, regulator bodies in Jordan should increase the effectiveness of corporate governance in Jordanian companies in order to enhance the quality of financial reports. In addition, this study opens up avenues for more studies on accounting conservatism not only in Jordan, but also in other countries where this area of study is lacking. Furthermore, it opens up opportunities and provides avenues for more in-depth research related to the quality of financial reports.
format Thesis
qualification_name Ph.D.
qualification_level Doctorate
author Al-Sraheen, Dea'a Al-Deen Omar Nawwaf
author_facet Al-Sraheen, Dea'a Al-Deen Omar Nawwaf
author_sort Al-Sraheen, Dea'a Al-Deen Omar Nawwaf
title The relationship between corporate governance mechanisms and company attributes and accounting conservatism of Jordanian listed companies
title_short The relationship between corporate governance mechanisms and company attributes and accounting conservatism of Jordanian listed companies
title_full The relationship between corporate governance mechanisms and company attributes and accounting conservatism of Jordanian listed companies
title_fullStr The relationship between corporate governance mechanisms and company attributes and accounting conservatism of Jordanian listed companies
title_full_unstemmed The relationship between corporate governance mechanisms and company attributes and accounting conservatism of Jordanian listed companies
title_sort relationship between corporate governance mechanisms and company attributes and accounting conservatism of jordanian listed companies
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2014
url https://etd.uum.edu.my/4309/1/s93663.pdf
https://etd.uum.edu.my/4309/2/s93663_abstract.pdf
_version_ 1747827710867013632
spelling my-uum-etd.43092022-04-09T23:47:55Z The relationship between corporate governance mechanisms and company attributes and accounting conservatism of Jordanian listed companies 2014 Al-Sraheen, Dea'a Al-Deen Omar Nawwaf Fadzil, Faudziah Hanim Syed Ismail, Syed Soffian Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5601-5689 Accounting This study examines the relationship between the corporate governance mechanisms related to the ownership structure, board of directors, audit committee and auditor quality along with company attributes and the accounting conservatism of Jordanian listed companies. The theoretical foundation of such a relationship was provided by five comprehensive theories which are the agency theory, the positive accounting theory, the resource dependence theory, stewardship and the signaling theory. The data were obtained from the annual reports of 348 Jordanian companies from 2009 to 2011. Upon using the multiple regression analysis, the results show that the relationship between the corporate governance mechanisms and accounting conservatism was somewhat varied. Fifteen hypotheses were developed in this study. Seven of them were significant while eight were not. For ownership structure, institutional and foreign ownership were significant while family and managerial ownership were not statistically significant. Board independence, financial expertise and board tenure were significant, while board size, CEO and multiple directorships were not significant due to the higher level of P-value compared to 0.05. On the other hand, audit committee and auditor independence were statistically significant to conservatism, while auditor brand name, company size and debt contract were reported to be negatively and not significantly related to conservatism. These results indicate that corporate governance plays a vital role in enhancing the level of conservatism and reducing agency conflict. Further, regulator bodies in Jordan should increase the effectiveness of corporate governance in Jordanian companies in order to enhance the quality of financial reports. In addition, this study opens up avenues for more studies on accounting conservatism not only in Jordan, but also in other countries where this area of study is lacking. Furthermore, it opens up opportunities and provides avenues for more in-depth research related to the quality of financial reports. 2014 Thesis https://etd.uum.edu.my/4309/ https://etd.uum.edu.my/4309/1/s93663.pdf text eng public https://etd.uum.edu.my/4309/2/s93663_abstract.pdf text eng public Ph.D. doctoral Universiti Utara Malaysia Abbott, L. J., and S. Parker. (2000). Auditor selection and audit committee characteristics. Auditing: A Journal of Practice & Theory, 19 (2), 47-66. Abbott, L. 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