scholarly journals Impact of Institutional Governance Tools on Reducing Agency Costs to Commercial Banks Listed in the Amman Stock Exchange

2020 ◽  
Vol 11 (5) ◽  
pp. 414
Author(s):  
Omar Fareed Shaqqour
Keyword(s):  
Board Of Directors ◽  
Agency Costs ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Institutional Governance ◽  
Study Results ◽  
Amman Stock Exchange ◽  
The Board Of Directors ◽  
Governance Tools ◽  
The Impact

This study aims to identify the Impact of institutional governance tools on reducing agency costs in the banks listed in Amman Stock Exchange (ASE). To this end, the researcher has studied the impact of an institutional governance tools on reducing the agency costs. Which are: board of directors` size, board of directors` independent members ratio, number of audit committee meetings, ratio of debt-financing, market share and bank`s size.The agency costs are measured by three indicators: assets turnover ratio, operating expenses ratio and free cash flow indicator. Study sample comprises all 16 banks listed in the ASE, for which data are available in the ASE during period of the study (2017 – 2019). EXCEL and SPSS are used to identify descriptive characteristics of study and analyze data. Regression analysis method is also used to test the study hypotheses. The study results have concluded that agency costs increase with the increase in the board of directors size, the independent members ratio, number of meetings of audit committees, debt finance ratio and market share ratio. The study has also concluded, as per the operating expenses indicator, that agency costs increase with the increase of debt financing, while they decrease with the increase in the board of directors size. According to the free cash flow indicator, the study results have showed that the agency costs increase with increase in the board of directors size.

The impact of ownership structure and the board of directors’ composition on tax avoidance strategies: empirical evidence from Jordan

2020 ◽  
Vol 18 (4) ◽  
pp. 795-812
Author(s):  
Amneh Alkurdi ◽  
Ghassan H. Mardini
Keyword(s):  
Board Of Directors ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Policy Implications ◽  
Content Type ◽  
Amman Stock Exchange ◽  
Avoidance Strategies ◽  
The Board Of Directors ◽  
The Impact

Purpose Adopting agency theory, the purpose of this study is to explore the impact of ownership structure and board of directors’ composition on the extent of tax avoidance strategies. Design/methodology/approach The sample included all of the Jordanian first market companies listed on the Amman Stock Exchange from 2012 to 2017, comprising 348 observations. Findings The main finding of the paper is that tax avoidance is negatively related to managerial and institution ownership structures, which reduces the usage of tax avoidance strategies. Foreign ownership, however, has a positive relation that increases the likelihood of adopting tax avoidance strategies. Practical implications This study has policy implications for policymakers in relation to designing future tax systems to reduce the possibility of engaging in tax avoidance practices. Originality/value To the best of the authors’ knowledge, this study is the first of its kind that investigates the effects of the managerial, foreign and institutional ownership classes and board composition on tax avoidance for Jordanian listed companies.

scholarly journals The impact of board characteristics on earnings management

2021 ◽  
Vol 10 (3) ◽  
pp. 8-17
Author(s):  
Mahmoud Mohmad Aleqab ◽  
Maha Mohammad Ighnaim
Keyword(s):  
Regression Analysis ◽  
Earnings Management ◽  
Board Of Directors ◽  
Stock Exchange ◽  
The Other ◽  
Real Earnings Management ◽  
Board Members ◽  
Amman Stock Exchange ◽  
The Board Of Directors ◽  
The Impact

This study explores the effect of the board of directors’ characteristics on real earnings management in Jordanian non-financial companies listed on the Amman Stock Exchange. The sample size is 131 companies during the period of 2015–2017. The study uses a board of directors’ size, board members’ independence, board members’ financial experience, number of board meetings, membership in more than one board, and the ownership of board members of company shares to represent the board of directors’ characteristics. Real earnings management is measured using the Roychowdhury model (2006). A multiple regression analysis (panel data) is used to investigate the effect of the board of directors’ characteristics on real earnings management. The study found a negative and statistically significant impact for both: board members’ independence and board members’ financial experience on earnings management through real activities against the previous studies’ findings, this research measured the impact of real activities. On the other hand, the study did not find any statistically significant effect of the additional earnings management variables through actual activities

scholarly journals The effect of applying institutional governance principles in the accounting disclosure of service companies listed on the ASE

2021 ◽  
Vol 11 (9) ◽  
pp. 2359-2370 ◽  
Author(s):  
Zeyad Almatarneh ◽  
Abdelrahim Kadomi ◽  
Younes AlShobaki ◽  
Ala Albawwat
Keyword(s):  
Board Of Directors ◽  
Stock Exchange ◽  
Return On Assets ◽  
Institutional Governance ◽  
Accounting Disclosure ◽  
Financial Reports ◽  
Service Companies ◽  
Earnings Per Share ◽  
Study Population ◽  
The Impact

The study aimed to identify the impact of the application of institutional governance principles in the accounting disclosure of service companies listed on the Amman Stock Exchange (ASE). The study collected the financial statements of companies during the period 2014-2019, and the extent of applying the principles of institutional governance was measured through indicators included (board of directors’ size, board of directors’ independence, and concentration of ownership). Accounting disclosure was also measured by return on assets and earnings per share. The study population consisted of service companies listed on the ASE, and the study used the random sample where the number of companies included in the study population (14) companies. The required data was obtained throughout the financial reports of companies published on ASE website as a study sample. The results showed a statistically significant effect on the application of institutional governance principles using their instruments (board of directors’ size, board of directors’ independence, and concentration of ownership) in accounting disclosure (return on assets, earnings per share). In the light of the previous results, the study presented several recommendations, which most importantly: The need to adhere to the principles and rules of institutional governance in a way that assists to protect the rights and interests of shareholders.

scholarly journals The impact of the board of directors on the financial performance of Tunisian companies

2012 ◽  
Vol 8 (3) ◽  
pp. 6-21
Author(s):  
Zied Bouaziz ◽  
Mohamed Wajdi Triki
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Linear Regression Models ◽  
The Board Of Directors ◽  
Internal Mechanism ◽  
And Control ◽  
The Impact

The Board of Directors plays a key role as a internal mechanism of corporate governance. Indeed, its effectiveness is dependent on the presence of several factors, the most important are related to characteristics that relate primarily to the independence of its members, board size, the cumulative functions of decision and control, the degree of independence of the audit committee and the gender diversity of the board. To test the validity of our hypothesis, which states the existence of a certain deterministic between the board’s characteristics and financial performance measured by three different ratios, namely ROA, ROE and Tobin’s Q, we have developed three linear regression models. Our empirical validation was conducted on a sample of 26 companies listed on the Tunisian stock exchange Tunis (Tunis Stock Exchange) over a period that spans four years (2007-2010). The estimated models show satisfactory results showing the importance of the impact of board characteristics on financial performance of Tunisian companies.

scholarly journals The Impact of Motivation on Dynamic Capabilities in Jordanian Commercial Banks

2020 ◽  
Vol 14 (1) ◽  
pp. 130
Author(s):  
Ayman Suliman Jarrar
Keyword(s):  
Human Resources ◽  
Sample Size ◽  
Commercial Banks ◽  
Dynamic Capabilities ◽  
Stock Exchange ◽  
Data Access ◽  
Study Results ◽  
Amman Stock Exchange ◽  
Study Population ◽  
The Impact

This paper aims to identify the impact of motivation on dynamic capabilities. The study population consists of all workers in the 13 Jordanian commercial banks, listed in Amman Stock Exchange which is estimated by 20,000 workers.  The sample size is 384 sample entails in Jordanian commercial banks. the study results indicate that there is a significant impact of the motivation dimensions on the managerial dynamic capabilities. This study has some limitations which includes data access limitations and access limitations. The study recommends extending its scope and review the human resources polices to review the motivation system in the Jordanian banks.

scholarly journals Effect of Corporate Governance Rules on Voluntary Disclosure in Jordanian Corporations Listed with the Amman Stock Exchange (ASE): (An Empirical Study)

2019 ◽  
Vol 14 (1) ◽  
pp. 154-168
Author(s):  
Al-Nimer Munther
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Voluntary Disclosure ◽  
Audit Committee ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Family Ownership ◽  
Significant Positive Relationship ◽  
Amman Stock Exchange ◽  
The Board Of Directors

AbstractThis paper aims to examine the impact of corporate governance (CG) rules using several variables—size of the board of directors, size of the audit committee, family ownership ratio, and their impact on the level of the voluntary disclosure of companies listed with Amman Stock Exchange (ASE). The study was conducted based on the annual reports of the first market that include 55 firms. Content analysis was applied to collect the required data from several sectors (financial, insurance, services, and industrial sectors) from 2016 to 2017.The results indicate a negative association among family ownership ratio, size of the audit committee, and voluntary disclosure level. However, the study shows that the size of the board of directors has a significant positive relationship with the level of voluntary disclosure. Furthermore, the results show that CG rules (size of the board of directors, size of the audit committee, and family ownership ratio) have a significant positive relationship with the voluntary disclosure level of the companies listed with ASE. In the borderline market environment, the study contributes to a theoretical understanding of the corporate governance of voluntary disclosure and the relationship between corporate governance mechanisms and voluntary disclosure. The outcomes provide empirical support for the theoretical notion that effective corporate governance plays an important role in increasing the extent of voluntary disclosure.

scholarly journals Ownership Structure and Dividends Policy: Emerging Market Evidence

2018 ◽  
Vol 11 (6) ◽  
pp. 65
Author(s):  
Ahmad N. Obaidat
Keyword(s):  
Board Of Directors ◽  
Ownership Structure ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Emerging Market ◽  
Negative Relationship ◽  
Ownership Concentration ◽  
Financial Firms ◽  
Amman Stock Exchange ◽  
The Board Of Directors

This study investigated the effect of ownership structure on the dividend policy of the financial firms listed on Amman Stock Exchange (ASE) for the period 2014-2016. The results indicated a positive relationship between dividend and institutional, managerial, and foreign ownership, and negative relationship between dividend and ownership concentration. The result also indicated that a large portion of the ownership is in the hand of the instructions and the board of directors, and the ownership is not highly concentrated.

scholarly journals The Influence of the Independent Non-Executive Board Members on the Financial Performance of the Companies Listed in the Bucharest Stock Exchange

2021 ◽  
Vol 14 (10) ◽  
pp. 462
Author(s):  
Bogdan Aurelian Mihail ◽  
Carmen Daniela Micu
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Relevant Literature ◽  
Board Members ◽  
Return On Equity ◽  
Point Increase ◽  
The Board Of Directors ◽  
Governance Tools ◽  
Scatter Plots ◽  
The Impact

This paper studies the impact of independent board members on the financial performance of companies listed on the Bucharest Stock Exchange during the period 2016–2020. Different characteristics of the board of directors have been examined extensively in the literature and board independence was identified as one of the most effective corporate governance tools. In this context, the present study contributes to the relevant literature by examining recent data for Romania and investigating alternative performance indicators such as return on assets (ROA), return on equity (ROE) and Tobin’s Q. The correlation analysis, scatter plots, and regression results document that a higher share of the independent board members was associated with higher returns on equity ratio. Specifically, a 10% rise in the share of independent members was associated with an approximately 0.9%-point increase in ROE.

scholarly journals Does the competency attributes of board members’ enhance the monitoring of earning management? Evidence from a developing country

2017 ◽  
Vol 13 (1) ◽  
pp. 100-108 ◽  
Author(s):  
Anas Najeeb Mosa Ghazalat ◽  
Md.Aminul Islam ◽  
Idris Bin Mohd Noor ◽  
Ayman Ahmad Abu Haija
Keyword(s):  
Earnings Management ◽  
Board Of Directors ◽  
Management Practices ◽  
Stock Exchange ◽  
Industrial Firms ◽  
Time Period ◽  
Opportunistic Behaviour ◽  
The Board Of Directors ◽  
High Level ◽  
The Impact

The monitoring role of the board of directors has been extensively slammed as being ineffective since it depends on several factors. This study sheds light on some of the directors’ attributes and the impact on mitigating the opportunistic behaviour. By adopting different perspectives, we argued whether the directors with more expertise, tenure, outside directorships become more effective in mitigating the opportunistic behaviour. These attributes could have a curvilinear effect since such optimal attributes could improve the competency level of the directors. Hence, the board becomes more effective. Meanwhile, its effect could turn inversely to make the directors ineffective. This study adopted discretionary accruals as an indicator for earnings management. A sample of 114 service and industrial firms listed in Amman Stock Exchange (ASE) from 2009-2015 were chosen for this study. Pooled OLS regression model is enlisted to avoid the inconsistently of the slope across individual units and time period. Results show that the directors with financial expertise are more effective to minimise the level of earnings management practices. Conversely, the independent directors with high tenure besides the higher directors with outside directorships are engaged with a high level of earnings management practices. This implies the existence of each of the friendliness hypothesis and the busyness hypothesis in the Jordanian market. Similarly, this also explains the weakness of the board of directors in complying to their monitoring role in the emerging markets in general.

Sign in / Sign up

Export Citation Format

Share Document