Corporate governance mechanisms and corporate risk disclosure: Empirical evidence from Jordan

This study aims to examine the relationship between corporate governance mechanisms (board of directors, audit committee and ownership structure) and corporate risk disclosure (CRD). This study also investigates the moderating effect of family ownership on the relationship between the internal corpo...

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Main Author:	Al Shira'H, Malek Hamed Mahasen
Format:	Thesis
Language:	eng eng eng eng
Published:	2020
Subjects:	HD58.7 Organizational Behavior. HD61 Risk Management
Online Access:	https://etd.uum.edu.my/9493/1/permission%20allow-902210.pdf https://etd.uum.edu.my/9493/2/s902210_01.pdf https://etd.uum.edu.my/9493/3/s902210_02.pdf https://etd.uum.edu.my/9493/4/s902210_references.docx
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id	my-uum-etd.9493
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spelling	my-uum-etd.94932022-06-14T08:16:06Z Corporate governance mechanisms and corporate risk disclosure: Empirical evidence from Jordan 2020 Al Shira'H, Malek Hamed Mahasen Abdul Rahman, Azhar Mustapa, Ifa Rizad Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy HD58.7 Organizational Behavior. HD61 Risk Management HF5667 Professional Ethics. Auditors. This study aims to examine the relationship between corporate governance mechanisms (board of directors, audit committee and ownership structure) and corporate risk disclosure (CRD). This study also investigates the moderating effect of family ownership on the relationship between the internal corporate governance mechanisms and CRD. The sample of the study consists of 376 annual reports of Jordanian companies during the period of 2014 to 2017. Content analysis approach was used to determine the level of risk disclosure by computing the number of risk related sentences in the annual reports. Random effect model was employed in the analysis. Empirical results show that total risk disclosure sentences range from a minimum of 2 sentences to a maximum of 61 sentences and the mean value of CRD is 28 sentences. The results also indicate that board expertise, foreign directors and audit committee size, are positively related with the level of CRD. Conversely, CEO duality, political connection and family ownership have a negative impact on CRD. Furthermore, the results failed to support that board size, board meetings, audit committee meetings, audit committee expertise, overlapping of audit committee membership, institutional ownership and foreign ownership have a significant effect on the level of risk disclosure. The study has found a significant moderating effect of family ownership on the relationship between internal corporate governance mechanisms and CRD. The current study contributes to the literature by providing a better understanding of the risk disclosure practices among Jordanian listed firms. The results of this study have implications for companies in Jordan to recognize the important role played by corporate governance mechanisms in improving their risk disclosure practices. Furthermore, accounting regulators in Jordan should mandate companies to provide sufficient risk information in their annual reports. 2020 Thesis https://etd.uum.edu.my/9493/ https://etd.uum.edu.my/9493/1/permission%20allow-902210.pdf text eng 2022-10-26 staffonly https://etd.uum.edu.my/9493/2/s902210_01.pdf text eng 2022-10-26 staffonly https://etd.uum.edu.my/9493/3/s902210_02.pdf text eng 2022-10-26 staffonly https://etd.uum.edu.my/9493/4/s902210_references.docx text eng 2022-10-26 staffonly other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng eng
advisor	Abdul Rahman, Azhar Mustapa, Ifa Rizad
topic	HD58.7 Organizational Behavior. HD61 Risk Management HD58.7 Organizational Behavior.
spellingShingle	HD58.7 Organizational Behavior. HD61 Risk Management HD58.7 Organizational Behavior. Al Shira'H, Malek Hamed Mahasen Corporate governance mechanisms and corporate risk disclosure: Empirical evidence from Jordan
description	This study aims to examine the relationship between corporate governance mechanisms (board of directors, audit committee and ownership structure) and corporate risk disclosure (CRD). This study also investigates the moderating effect of family ownership on the relationship between the internal corporate governance mechanisms and CRD. The sample of the study consists of 376 annual reports of Jordanian companies during the period of 2014 to 2017. Content analysis approach was used to determine the level of risk disclosure by computing the number of risk related sentences in the annual reports. Random effect model was employed in the analysis. Empirical results show that total risk disclosure sentences range from a minimum of 2 sentences to a maximum of 61 sentences and the mean value of CRD is 28 sentences. The results also indicate that board expertise, foreign directors and audit committee size, are positively related with the level of CRD. Conversely, CEO duality, political connection and family ownership have a negative impact on CRD. Furthermore, the results failed to support that board size, board meetings, audit committee meetings, audit committee expertise, overlapping of audit committee membership, institutional ownership and foreign ownership have a significant effect on the level of risk disclosure. The study has found a significant moderating effect of family ownership on the relationship between internal corporate governance mechanisms and CRD. The current study contributes to the literature by providing a better understanding of the risk disclosure practices among Jordanian listed firms. The results of this study have implications for companies in Jordan to recognize the important role played by corporate governance mechanisms in improving their risk disclosure practices. Furthermore, accounting regulators in Jordan should mandate companies to provide sufficient risk information in their annual reports.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Al Shira'H, Malek Hamed Mahasen
author_facet	Al Shira'H, Malek Hamed Mahasen
author_sort	Al Shira'H, Malek Hamed Mahasen
title	Corporate governance mechanisms and corporate risk disclosure: Empirical evidence from Jordan
title_short	Corporate governance mechanisms and corporate risk disclosure: Empirical evidence from Jordan
title_full	Corporate governance mechanisms and corporate risk disclosure: Empirical evidence from Jordan
title_fullStr	Corporate governance mechanisms and corporate risk disclosure: Empirical evidence from Jordan
title_full_unstemmed	Corporate governance mechanisms and corporate risk disclosure: Empirical evidence from Jordan
title_sort	corporate governance mechanisms and corporate risk disclosure: empirical evidence from jordan
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2020
url	https://etd.uum.edu.my/9493/1/permission%20allow-902210.pdf https://etd.uum.edu.my/9493/2/s902210_01.pdf https://etd.uum.edu.my/9493/3/s902210_02.pdf https://etd.uum.edu.my/9493/4/s902210_references.docx
_version_	1747828607656394752

Corporate governance mechanisms and corporate risk disclosure: Empirical evidence from Jordan

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