Strategic management accounting techniques and their effect on the capital structure
Authors : Al Junidi, M., & Warrad, L.
Abstract : This Study aimed at investigating the effect of implementing the Strategic Management Accounting Techniques (SMATs) on the financial structure of the manufacturing companies listed on the Amman Stock Exchange. To achieve the objectives of the study, a questionnaire was designed as a study tool to know the extent to which (SMATs) are applied. The findings of the Study show a statistically significant effect of the use of Strategic Management Accounting Techniques, combined and individual on the financial structure in the Jordanian public shareholding manufacturing companies listed on Amman Stock Exchange.
Keywords : Strategic Management Accounting Techniques, Activity-Based Costing System, Total Quality Management, Product Lifecycle, Target Costing, Financial Structure.
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The Impact of
Applying
the International
Financial Reporting
Standard No.16 on the
Financial Statements
of
Service Companies
Listed on Amman
Stock
Exchange under
(Covid
-19”
Authors : Saffarini, F., Warrad, L.
Abstract : This study aims to identify the impact of Applying the International Financial Reporting Standard No.16 on the Financial Statements of Service Companies Listed on Amman Stock Exchange under (Covid-19), The study has been used the descriptive analytical approach, study used the financial data of companies in period (2017-2020), the Statistical Package for Social Sciences (SPSS) program has also been applied to analyze the study data by applying the Accompanying One-Way Variance model (ANCOVA) and knowing the size of the effect from the (Eta-Square). The study population included service companies listed in the Amman Stock Exchange, while the study sample was chosen from all companies that applied the standard, which counted of 31 companies out of 34. The study reached the following results: there was no statistically significant effect of the total assets, total liabilities, total shareholders’ equity, and return on investment, return on shareholders’ equity, debt to assets, debt to shareholders’ equity, assets turnover. The study recommended a set of practical and theoretical recommendations, the most prominent was: The study recommends future researchers, based on its results, It is necessary to study the impact of the International Financial Reporting Standard No.16 in the existence of the (Covid-19) on total shareholders’ equity, the rate of return on assets (ROA), and the rate of return on shareholders’ equity (ROE), and treat them appropriately in accounting wise, because of its impact on these financial ratios, which have a clear impact on strategic decisions of interest to the company and shareholders in particular, and users of financial statements in general, and the study also recommends future researchers to further research on the impact of the International Financial Reporting Standard No.16 in the existence of the (Covid-19) on total liabilities, and the ratio of debt to assets (D\E), because according to the theoretical reviews, the value of interest in the first years of the application of the standard will be the highest so this will increase the total liabilities in the first years.
Keywords : IFRS 16, total assets, total liabilities, statement of equity, ratio of return on assets, ratio of return on equity, ratio of debt to assets, ratio of debt to equity, asset turnover ratio, listed service companies in the Amman Stock Exchange.
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Evaluating the Financial Performance in Jordanian Commercial Banks under (Covid-19)
Authors : Bdier, M., Warrad, L.
Abstract : This study aimed at evaluating the financial performance in Jordanian commercial banks under (Covid-19), by examining if there are differences in the financial performance of Jordanian commercial banks before and after (Covid-19). The financial performance was measured through four indicators: (rate of return on total assets, rate of return on shareholders’ equity, net interest and commissions to total income, rate of payable interest to net facilities). In order to achieve the objectives of the study, the descriptive analytical method was used, and the study sample consisted of (13) commercial banks listed on Amman Stock Exchange during the period 2019-2020 Using the quarterly budgets of banks. The study found a set of results, the most important of which are: There are statistically significant differences in all financial performance indicators represented by (rate of return on total assets, rate of return on shareholders’ equity, net interest and commissions to total income, rate of payable interest to net facilities) before and after (Covid-19) in Jordanian commercial banks. The results of the study also showed that differences occurred in (rate of return on total assets, rate of return on shareholders’ equity, rate of payable interest to net facilities) were in favor of the period before the (Covid-19) pandemic, while the differences that occurred in the indicator of net interest and commissions to total income were in favor of the period after the (Covid-19) pandemic. The study concluded a set of recommendations, the most important of which are: Commercial banks should study the various alternatives available to optimally use their assets, especially during exceptional periods such as the (Covid-19) pandemic, and develop policies related to exceptional circumstances where they set appropriate rates of interest on loans in order to encourage companies and individuals to take loans, increasing banks’ profits and improving the financial performance indicator of net interest and commissions to total income.
Keywords : financial performance, Jordanian commercial banks, Return on total assets, Return on equity, COVID-19
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The Impact of Board of Directors Characteristics on the
Authors : Hssein, E., Warrad, L.
Abstract : This study aims to measure the impact of the characteristics of Board of Directors on the quality of financial reports in reference to the framework role of mediator of the Audit Committee, for this purpose a sample of 10 (Ten) financial services corporations were selected during the period of (2014-2017). Considering that all the data were gathered from the financial reports of the selected corporations which are listed in Amman Stock Exchange (ASE) and analyzed using SPSS software (Version 25) for the purpose of this study. Furthermore, this study conducted statistical descriptive and multiple regression analysis for data description and statistical survey to support the research hypothesis.
Keywords : Characteristics of Board of Directors, Audit Committee, Quality of Financial Reports, Service Companies.
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Could Profitability, Activity and Use of Equity Finance Increasing DuPont Model of ROE? Jordanian Case
Authors : Warrad, L., Nassar, M.
Abstract : Performance evaluation is very fundamental to make a right decision. Profitability analysis is very important factor in the performance evaluation of all companies, but it is not enough just computing return on equity (ROE) to evaluate performance. It is very important to reveal the factors which are having impact on ROE. For this reason DuPont Model is considered to be the essential performance indicator in many studies. Theoretically there is a positive relationship between the DuPont Model of ROE with its three components, total asset turnover, net profit margin, and financial leverage, and a negative relationship with the average total equity. The current study applied on the Jordanian industrial sectors for the period from 2008 to 2015 to approve the previous fact. Eviews software used, stability diagnostics, recursive estimates, Cusum test, vector auto regression model, ordinary lease square, Wald coefficient test, and regression analysis applied. The results revealed that there is a significant effect of total asset turnover on DuPont Model of ROE, there is a significant effect of net profit margin on DuPont Model of ROE, and finally there is no significant effect of financing leverage on DuPont Model of ROE. On the other hand, there is a significant effect of total asset turnover and net profit margin and financing leverage jointly on DuPont Model of ROE.
Keywords : Total Asset Turnover, Net Profit Margin, Financial Leverage, DuPont Model of Return on Equity, Amman Stock Exchange
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Accumulated Performance and its Effect on Islamic Bank’s Leverage: Case in Jordan
Authors : Warrad, L.
Abstract : Islamic Banks in Jordan considered being the most required modern achievement in the Jordanian economy field because of their contribution in solving some Islamic countries’ banking dealing problems they sever. Also this kind of business tries to survive and compete with others in order to achieve competitive advantage in the Jordanian market. From these points of views the important of this study arise and try to highlight the effect of some factors express the performance such as Earnings to Total Asset (RETA) and Return on Equity (ROE) on the leverage of listed Jordanian Islamic Banks. The results of the statistics techniques that one employed in this investigation shows that the accumulated performance index that one measured by Retained Earnings to Total Assets (RETA), and performance index that one measured by Return on Equity (ROE) have a significant effect on Islamic Bank’s leverage in Jordan that one quantifying by Debt Ratio, those conclusions are agreed whether the affect taken individually or in combination. The analysis covered the period from 2010 to 2015, and used some statistical techniques to examine its hypotheses.
Keywords : Retained Earnings to Total Asset (RETA), Return on Equity (ROE), Debt Ratio, Amman Stock Exchange (ASE).
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Does Liquidity and Firm Size Affect Profitability and Does Capital Structure play a Moderator Role: Study based on Jordanian Data
Authors : Warrad, L. Oqdeh, S.
Abstract : The purpose of the current study is to investigate the role of the moderator variable in directing or changing the relations between independent and dependent variables. This study tries to explore the role of the capital structure as a moderator variable to draw the shape of the relation between liquidity, firm size and profitability. So in order to achieve the previous objective, the researchers reviewed the literature studies to display the relation between liquidity, firm size and profitability without the existence of the interventional role of capital structure, and then enter a moderator variable among the analysis to monitor the effect. The current study applied on all listed manufacturing companies in Amman Stock Exchange (ASE), and financial reports for 30 industrial companies were selected based on a stratified sample and include 90 observations using StataMP 13 software, for the period from 2014 to 2016. The results showed the following results: liquidity is a significant independent variable to influence the listed Jordanian manufacturing firms’ profitability; firm size is a significant independent variable to influence the listed Jordanian manufacturing firms’ profitability; liquidity and firm size are jointly significant independent variables to influence the listed Jordanian manufacturing firms’ profitability. On the other hand, liquidity is a significant independent variable to influence the listed Jordanian manufacturing firms’ profitability through the role played by the capital structure in the relationship between liquidity and capital structure; firm size is a significant independent variable to influence the listed Jordanian manufacturing firms’ profitability through the role played by the capital structure in the relationship between firm size and capital structure, this is what made a difference and value added. Finally, liquidity and firm size jointly are significant independent variables to influence the listed Jordanian manufacturing firms’ profitability through the role played by the capital structure in the relationship between liquidity, firm size and capital structure; this is what made a difference and value added.
Keywords : Liquidity, Firm size, Capital structure, Profitability, ASE.
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The Extent to Which the Corporate Governance Characteristics has Affected the Audit Report Lag in Jordanian Banks
Authors : Warrad, L.
Abstract : The business environment has experienced rapid changes with critical implications on organizations in different countries, companies have responded to compete by improving their business management practices and enforcement instructions for the organization of its work and the methods of administration applied there in and work to improve the efficiency and effectiveness of accounting methods and auditing, from while supporting the internal audit departments of the monitoring and follow-up committees for accounting and auditing procedures to achieve transparency and credibility financial statements within their financial reports. There is an urgent need in presently the application of corporate governance on one hand and standards Accounting, Conduct and Ethics Auditing profession on the other hand. Because of the impact on the independence of auditors and increase effectiveness of their performance, as well as their role in evaluating the performance of management in the strengths of companies are through their organization of business and their appearance and weak performance (Al-Beshtawi, 2014). This study seeks to discuss the extent of association between corporate governance characteristics and the audit report lag ARLAG for the listed Jordanian Banks during the period from 2014 to 2016. The study used statistics measurements and tools to clarify the relations and hypotheses. The results found a significant relation between the corporate governance characteristics and audit report lag ARLAG jointly and separately with the board size BORSIZE, board diligence BORDEL, audit committee size ACSIZE and audit committee diligence ACDEL, and the relation was controlled by two variables: return on equity ROE and company size COMSIZE.
Keywords : corporate governance, audit report lag, Amman Stock Exchange (ASE)
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The Effect of Corporate Governance Characteristics on the Performance of Jordanian Banks
Authors : Warrad, L., Khaddam, L.
Abstract : Corporate governance has become a common discussion issue in developed and developing countries. Therefore, the intensive interest that the corporate governance determines firm performance and protects the interests of shareholders has result in increasing global concern about the corporate governance concept and determinants. There is an increasing forms of corporate finance literature which build a correlation between corporate governance techniques and financial performance. This study represents a new attempt to show the role of corporate governance characteristics on the performance of Jordanian Banks expressed by return on equity ROE during the period from 2014 to 2017. The investigation employed statistics measurements and tools to state the relationships between ROE and different variables. The study indicates a significant effects of different corporate governance characteristics on the performance of banks. In other words, the study reports significant effects of the board size, board diligence, audit committee size and audit committee diligence separately on ROE by considering two controlling variables; namely, firm size and return on assets.
Keywords : Corporate governance, Return on Equity, Amman Stock Exchange (ASE)
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The Effect of Market Valuation Measures on Stock Price: An Empirical Investigation on Jordanian Banks
Authors : Warrad, L.
Abstract : The recognition of vital sectors in the stock exchange and the identification of the dynamic variables affecting stock prices occupy an important position in the growth and development of the stock exchange. They also play an important role in dynamic issues of securities exchanges. The estimation of market valuation indicators and their impact on stock price is expected to help in true deal, and these result in closing the deal price of stocks to their normal prices. Actually, constancy will occur in a capital market when pricing equilibrium is formed in a market of capital, and it just happens with practical use of good and rational methods manner to price share. (Nazemi M., 2012) This study attempted to determine the effect of major market valuation measures on Jordanian banks’ stock prices during the period of 2008–2014; the study applied correlation and multi-regression methods to test its hypotheses. The independent variables for the study are earnings per share (EPS), dividend per share (DPS), book value per share, price/earnings ratio (P/E), dividend yield, market/book ratio and stock turnover ratio; the dependent variable is the stock price. The results of the study show that market valuation measures have a significant effect on banks’ stock prices. Dividends per share (DPS), book value per share and dividend yield also had a significant effect on stock price, while there was no significant effect caused by EPS, P/E, market/book ratio or stock turnover ratio.
Keywords : Stock price, earnings per share (EPS), dividends per share (DPS), book value per share, price/earnings ratio (P/E), dividend yield, market/book ratio, stock turnover ratio, Amman Stock Exchange (ASE).
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Dose Listed Jordanian Manufacturing Firms’ Profitability and Size Affecting External Audit Fees?
Authors : Wrarad, L.
Abstract : The external audit services and fees charged by clients to their auditors are clearly of benefit to both clients and auditors: Clients are legally required to have their financial statements audited and desire the fees they pay to be plausible, auditors render such services and care to ensure that the fees they charge are enough to qualify a favorable and pleasant service to be provided (Kikhia, 2014). What distinguish the current investigation is the empirically examination of profitability and size and how affecting the external audit fees in industrial sector in Jordan for a total of five years, also the current investigation is prompted by the absence of studies on auditing and consulting expenses in Jordan, especially in manufacturing sector, which leads in this study to examine the effect of Profitability and size of listed Jordanian Manufacturing firms on External Audit Fees. To achieve this target the study used quantitative techniques by using the (Eviews) software during the period from 2010 to 2015. The outcomes showed that there is no significant effect of return on asset (ROA) of listed Jordanian Manufacturing firms separately on external audit fees, also, there is a significant effect of size of listed Jordanian Manufacturing firms separately on external audit fees, and finally, there is a significant effect of Profitability and size of listed Jordanian Manufacturing firms jointly on external audit fees
Keywords : External Audit Fees, Profitability, Firm Size, and Amman Stock Exchange (ASE).
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The Influence of Leverage and Profitability on Earnings Quality: Jordanian Case
Authors : Warrad, L.
Abstract : The fundamental target of financial accounting is to provide information helpful to investors in making forecasting about firms performance. The evolution of income reporting as the essential source for investor decision making has been well authenticated and income reporting helps economic society in a different ways. (Schroeder, et al., 2014) The present study aims to survey the influence of leverage measured by debt ratio separately on Earnings Quality, and the influence of profitability measured by return on asset (ROA) separately on Earnings Quality, and finally the influence of leverage and profitability together on Earnings Quality. The paper covered the period from 2011 to 2015, and employed some statistical techniques on all listed Islamic Banks at Amman Stock Exchange (ASE) to revealed that there is a significant influence of debt ratio on the listed Jordanian Industrial companies’ Earnings Quality, and there is a significant influence of return on asset (ROA) on the listed Jordanian Industrial companies’ Earnings Quality, Finally, there is a significant influence of leverage and profitability on the listed Jordanian Industrial companies’ Earnings Quality
Keywords : Earnings Quality, Leverage, Profitability, and Amman Stock Exchange (ASE).
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Financial Risk, Liquidity Risk and their Effect on the Listed Jordanian Islamic Bank's Performance
Authors : Warrad, L
Abstract : The Islamic Banking Industry is growing fast in Jordan, and occupying important status in the global financial position. So the present study focused on illustrate this importance through studying the effect of Financial risk and Liquidity risk on the Listed Jordanian Islamic Bank's Performance, on the other words effect of the total liabilities to equity (LTE), and cash to deposit (CTD) on the listed Jordanian Islamic Bank's return on investment (ROI), because the growing market request and concern given to the Islamic banking and finance industry has sent the research interest in this area as well. The main contribution of the current study is to display the effect of two serious types of risks jointly on the performance of one of the most modern and vital sector in Jordan, known Islamic Banks. This is due that the Islamic banks’ asset and liabilities parts have singular risk attributes. The study applied statistical tests such as Correlation of residual value through BreuschGodfrey, Variance of the residual and Regression analysis, and some other techniques to reach the study results during the period from 2010 to 2015. The analysis results not accept the first null hypotheses, and accept the alternative hypotheses, so there is a significant effect of total liabilities to equity (LTE) separately on the listed Jordanian Islamic Bank's return on investment (ROI), but accept the second null hypotheses that there is no significant effect of cash to deposit (CTD) separately on the listed Jordanian Islamic Bank's return on investment (ROI), and finally not accept the main null hypotheses, and accept the alternative hypotheses that there is a significant effect of financial risk and liquidity risk jointly on listed Jordanian Islamic Bank's performance.
Keywords : Financial Risk, liquidity Risk, Performance, and Amman Stock Exchange (ASE).
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Audit Partner Tenure, Audit Quality and Audit Fees: Evidence from Jordanian Firms
Authors : Warrad, L.
Abstract : Audit tenure, audit quality and audit fees are important variables that have been studied and searched on the basis of auditing researches. The current study was conducted on a sample of 30 manufacturing companies listed on Amman Stock Exchange (ASE) from 2011 to 2015; the objective of this study is to examine the correlation between audit fees in these companies and the audit partner tenure (TENURE), on the one hand, and the correlation between audit fees (AUDFEES) and the audit quality (AQ) expressed in Big audit firms (BIG4) in the existence of three control variables; company size (COMPSIZE), return on asset (ROA) and board size (BORDSIZE). The findings of the study resulted in the following: audit partner tenure (TENURE) is an independent variable that is important for the explanation of the Jordanian manufacturing companies’ audit fees (AUDFEES), and the audit quality (AQ) is an independent variable that is important for the explanation of the Jordanian manufacturing companies’ audit fees (AUDFEES)
Keywords :
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