scholarly journals The Impact of Fair Value Accounting on Information Asymmetry: Evidence from Jordanian Banking Sector

2020 ◽  
Vol 13 (9) ◽  
pp. 55
Author(s):  
Mohammad Abdullah Fayad Altawalbeh
Keyword(s):  
Information Asymmetry ◽  
Commercial Banks ◽  
Banking Sector ◽  
Stock Exchange ◽  
Fair Value ◽  
Fair Value Accounting ◽  
Financial Reports ◽  
Bid Ask Spread ◽  
Amman Stock Exchange ◽  
The Impact

This study aims at examining the impact of Fair value accounting measured by other comprehensive income on information asymmetry measured by the bid-ask spread in the Jordanian banking sector between 2010 and 2017. The study sample consisted of the thirteen commercial banks listed in Amman Stock Exchange, and panel data analyses were employed to test the study hypothesis, data for the study was gathered through the annual financial reports disclosed on Amman Stock Exchange. The findings revealed that fair value has a negative and significant impact on information asymmetry in the Jordanian commercial banks, indicating that fair value accounting supplies stakeholders with accurate and appropriate data and reflects the informational value of fair value numbers to investors.

scholarly journals The impact of creative accounting methods on financial reports and statements in commercial banks listed on Amman stock exchange (field study)

2021 ◽  
Vol 10 (2) ◽  
pp. 449-457
Author(s):  
Abdelwahab Mahmoud Al-Rawashdeh
Keyword(s):  
Earnings Management ◽  
Commercial Banks ◽  
Assessment Tool ◽  
Stock Exchange ◽  
Financial Statements ◽  
Professional Organization ◽  
Financial Reports ◽  
Creative Accounting ◽  
Amman Stock Exchange ◽  
The Impact

The aim of this study is to identify the impact of creative accounting methods on financial reports and statements in commercial banks listed on Amman Stock Exchange. Thus, in order to achieve this goal, the study utilized the descriptive analytical approach for its suitability to the nature of the study, also, the questionnaire was used as an assessment tool for this study. Meanwhile, among the most important findings of the study is that earnings management operations include many means and methods aimed at achieving specific purposes serving the management. Additionally, that commercial banks have practiced earnings management and creative accounting operations to a large extent during the financial years covered by the study period. And that the banking management is not aware of the impacts resulting from the operations of practicing fraudulent accounting and earnings management on the financial reports and statements, which greatly affects the reliability of the financial statements, makes them misleading and loses their quality, objectivity and credibility, therefore, affects the decisions of those statements’ users. The study has recommended the need to activate the governmental supervisory role as well as the audit committees in banks to limit the banks' practice of earnings management and creative accounting for the purpose of achieving the best degree of accounting information's quality and to provide it with each of trust and suitability, as well as the need to increase the effectiveness of the professional organization of accounting and auditing profession in Jordan. Also, to take the necessary measures to develop and enhance the competencies of its members, especially those who undertake auditing operations of banks' accounts to reveal earnings management and creative accounting operations and then working on reduce them. Besides, the necessity to expedite the activation of the governance rules' implementation, provided that it includes imposing penalties on the management of banks that practice creative accounting operations for the purpose of giving the published financial statements for these banks in the financial market each of confidence and objectivity.

Fair value and banking contagion

2016 ◽  
Vol 7 (3) ◽  
pp. 215-236 ◽  
Author(s):  
Leila Gharbi ◽  
Halioui Khamoussi
Keyword(s):  
Data Model ◽  
Banking Sector ◽  
Fair Value ◽  
Islamic Banks ◽  
Fair Value Accounting ◽  
Content Type ◽  
Gcc Countries ◽  
Conventional Banks ◽  
Value Changes ◽  
The Impact

Purpose This paper aims to explore empirically the impact of fair value accounting on banking contagion in a comparative context between Islamic banks and conventional banks. Design/methodology/approach The analysis of the impact of fair value changes on banking contagion is carried out through a panel data model. This study covers 20 Islamic banks and 40 conventional banks operating in the Gulf Cooperation Council (GCC) countries during nine years from 2003 to 2011. Findings Empirical evidence shows that there is a significant change in dynamic volatility in GCC banking sector because of financial crisis 2008. However, results fail to confirm the hypothesis that fair value accounting is significantly associated with an increase of banking contagion for both Islamic and conventional banks operating in GCC countries. Originality/value The outcome of this study provides some insights for academicians, accountants as well as regulators in terms of enhancing the effectiveness of accounting practices.

scholarly journals Fair Value Accounting and Earnings Management Using LLP and Realized Gains and Losses: Study in Banking Industry Listed on Indonesia Stock Exchange

2018 ◽  
Vol 14 (2) ◽  
pp. 126-137
Author(s):  
Ice Maria Ulfa ◽  
Bambang Subroto ◽  
Zaki Baridwan
Keyword(s):  
Earnings Management ◽  
Empirical Evidence ◽  
Banking Industry ◽  
Stock Exchange ◽  
Fair Value ◽  
Fair Value Accounting ◽  
Loan Loss ◽  
Trade Off ◽  
Gains And Losses ◽  
The Impact

Abstract: Fair Value Accounting and Earnings Management Using LLP and Realized Gains and Losses: Study in Banking Industry Listed on Indonesia Stock Exchange. This study examines whether earnings management can be limited by the implementation of fair value accounting in banking industry. The main contribution of this study is  providing provide empirical evidence about the impact of fair value accounting on earnings management in Indonesia. Earnings management is proxied by loan loss provision (LLP), the realized of gains and losses, and the trade-off between realized gains and losses and LLP following Bratten et al (2013). The study provides empirical evidence that earnings management is still performed by banks, by using LLP, realized gains and losses and also occurs trade-off between LLP and realized gains and losses as means to perform earnings management in accordance with the needs of management. If banks are exposed to fair value accounting, managers will have more flexibility in reporting banks’ financial performance to present a desired earning, by  providing them with additional earning managements tools. These findings can be informative for policymakers, banking practitioners, and academics.  Keywords: earnings management, fair value accounting, LLP, realized gains and losses, trade-off LLP and realized gains and losses.Abstrak: Akuntansi Nilai Wajar dan Manajemen Laba menggunakan CKPN dan Realized Gains and Losses: Studi pada Industri Perbankan yang terdaftar di Bursa Efek Indonesia. Studi ini bertujuan untuk meneliti apakah manajemen laba dapat dibatasi oleh penerapan akuntansi nilai wajar dalam industri perbankan. Kontribusi dari penelitian ini adalah untuk memberikan bukti empiris tentang dampak penerapan akuntansi nilai wajar pada manajemen laba di Indonesia. Manajemen laba diproksikan oleh cadangan kerugian penurunan nilai (CKPN), realized of gains and losses, dan trade-off antara realized of gains and losses dan CKPN mengikuti model penelitian Bratten et al (2013). Studi ini memberikan bukti empiris bahwa manajemen laba masih dilakukan oleh bank menggunakan CKPN, realized of gains and losses dan juga terjadi trade-off antara CKPN dan realized of gains and losses sebagai sarana manajemen laba sesuai dengan kebutuhan manajemen. Konsekuensi dari paparan bank terhadap akuntansi nilai wajar dapat meningkatkan fleksibilitas manajer dalam melaporkan penghasilan yang diinginkan dengan memberikan mereka alat manajemen laba. Temuan-temuan tersebut dapat bersifat informatif bagi pembuat kebijakan, anggota industri perbankan, dan akademisi. Kata kunci: manajemen laba, akuntansi nilai wajar, CKPN, realized gains and losses, trade-off CKPN dan realized gains and losses.

scholarly journals Form the Optimal Investment Portfolio Applied Study in the Jordanian Banking Sector (2013-2017)

2020 ◽  
Vol 13 (3) ◽  
pp. 79
Author(s):  
Suleiman Daood Al-Oshaibat ◽  
Daood Al-Oshaibat
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Stock Exchange ◽  
Optimal Investment ◽  
Effective Rate ◽  
Rate Of Return ◽  
Investment Portfolio ◽  
Applied Study ◽  
Securities Analysts ◽  
Amman Stock Exchange

The study aimed to form the optimal investment portfolio in the Jordanian banking sector. The research covered a period (2013-2017) and the sample of the study was selected from its community of Jordanian banks listed on the Amman Stock Exchange, consisting of (15) working banks for which the necessary data are available to study. The importance of the research lies in the formation of a thought and methodology that can be applied and utilized by investors and securities analysts in the management of their investment portfolio. The study shows that the effective rate of return is higher than the required rate of return in the Jordanian commercial banks. This indicates that the commercial banks have succeeded in their estimates of the required or actual rate of return for the optimal investment portfolio banks. the correlation matrix between returns on each bank in the investment portfolio is mostly low, which confirms that the investment portfolio of Jordanian banks is efficient, as Markowitz stressed on his focus on the correlation coefficient between returns and its impact on the return and risk of the optimal investment portfolio that achieve the highest return at a certain level of risk.

scholarly journals Impact of the Audit Committee's Characteristics on Voluntary Disclosure: The Case of the Banks Operating in Jordan

2019 ◽  
Vol 9 (4) ◽  
pp. 414
Author(s):  
Abdullah Majed Al Ma'ani ◽  
Akram Alawad
Keyword(s):  
Regression Analysis ◽  
Voluntary Disclosure ◽  
Audit Committee ◽  
Banking Sector ◽  
Stock Exchange ◽  
Secondary Data ◽  
Amman Stock Exchange ◽  
The Impact

The main objective of this study is to explore the impact of the Audit Committee's characteristics on the level of voluntary disclosure. Regression analysis was applied to verify the hypotheses, where this study used secondary data of 25 banks in the banking sector listed on the Amman Stock Exchange(ASE), for the period 2015 until 2017. The study found that there was an impact of the number of meetings of the Audit Committee on the level of voluntary disclosure, but there were no impacts, for both the size and independence of the Audit Committee, on the level of voluntary disclosure.

The Impact of Fair Value Measurement for Bank Assets on Information Asymmetry and the Moderating Effect of Own Credit Risk Gains and Losses

2018 ◽  
Vol 93 (6) ◽  
pp. 127-147 ◽  
Author(s):  
Joana C. Fontes ◽  
Argyro Panaretou ◽  
Kenneth V. Peasnell
Keyword(s):  
Credit Risk ◽  
Information Asymmetry ◽  
Fair Value ◽  
Data Availability ◽  
Bid Ask Spread ◽  
Fair Value Measurement ◽  
Gains And Losses ◽  
Value Measurement ◽  
The Impact

ABSTRACT We examine whether the use of fair value measurement (FVM) for bank assets reduces information asymmetry among equity investors (bid-ask spread) and how this is affected by the recognition of own credit risk gains and losses (OCR). Our findings show that FVM of assets is associated with noticeably lower information asymmetry, and that this reduction is more than twice as large when banks also recognize OCR. In addition, we find that the bid-ask spread is incrementally lower for banks that provide more detailed narrative disclosures on OCR. The findings also indicate that the effects of asset FVM and OCR recognition on the bid-ask spread do not simply capture the differences in the characteristics of the banks and the quality of their information environments. Data Availability: All data are available from public sources.

scholarly journals ANALYSIS RELATES TO THE IMPACT FROM MACROECONOMIC FACTORS TO BANKING STOCK RETURNS WHICH MEDIATED BY PROFITABILITY

2021 ◽  
Vol 2 (5) ◽  
pp. 742-755
Author(s):  
Hedwigis Esti Riwayati ◽  
Muhammad Affid Diena
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Path Analysis ◽  
Stock Returns ◽  
Banking Sector ◽  
Stock Exchange ◽  
Macroeconomic Factors ◽  
Financial Reports ◽  
Good Investment ◽  
The Impact

This research aims to analyze the impact which caused by macroeconomic factors to stock returns which mediated by profitability. This research used purposive sampling method with BUKU IV Banks who Listed on the Indonesia Stock Exchange as sample in this research period. The data was taken from the quarterly financial reports of the sample banks and Bank Indonesia. The analysis technique that used in this research are panel data regression and used path analysis to reveal the impact which caused by intervening variable. The results found that interest rates had no significant impact towards stock returns, while the inflation rate and the rupiah exchange rate had a direct significant impact on stock returns. Path analysis found that interest rates, inflation rates and Rupiah exchange rate had no significant affect on stock returns which indirectly mediated by profitability. This research results are very useful as an information for investors and stakeholders to determine good investment decisions in the banking sector.

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