Corporate Governance Mechanisms and Earnings Management: Evidence of Family and Non-Family Firms in Jordan
Authors : Yousef Abu Siam, Mohammad Idris, Mohammad Jebreel, and Majed Qabajeh
Abstract : The current work explores the availability of any variance in the relationship amongst the directors’ board, the earnings management, and the effectiveness of the audit committee of the family and non-family-owned companies in Jordan. A panel dataset consisting of numerous observations on the same economic units is used. Each element includes two subscripts, the group identifier, i (63 firms listed on ASE), and inside the group index represented by t that categorizes time from 2014 to 2020. Thanks to the Hausman and Breusch-Pagan (LM) tests’ verification of the appropriateness of the random-effects model, it is used to construct the regression model in this research paper.
This study demonstrates that the relationship concerning the effectiveness of the directors’ board and earnings management is significant and negative for the entire sample and non-family companies. This association yet is insignificant and weak for family companies. Furthermore, the current work demonstrates that the audit committee’s effectiveness significantly affects the management of earnings as gleaned from the whole and family sample. However, it is found that it is insignificant for non-family companies. The current research paper studies the Jordanian firms chiefly featured with common family ownership control. As gleaned from a framework theorized based on the agency theory, the use of data from Jordan assists in comparing family and non-family firms concerning the effect of the directors’ board and the characteristics of the audit committee as a compound measure. Their combined impact on earnings management is attained by this compound measure.
Keywords : Earnings management, Jordan, Family and non-family firms, The effectiveness of the board of directors and audit committee
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The Skills of Accounting Students in Jordanian Universities: A Dual Perspective
Authors : Naham Ali, Mohammad Idris
Abstract : The aim of this study is to identify the skills of accounting graduates required in the labor market, and to find whether the academic education of accounting keeps pace with the developments occurring in the business world. To this end, a questionnaire was distributed to a sample consisting of forty academics and forty professionals. The study reached a number of results, the most prominent of which is the presence of a statistically significant differences among the skills of accounting students that meet the requirements of the labor market from the point of view of professionals. Additionally, the presence of statistically significant differences of the extent of agreement between professionals and academics on the importance of the skills of accounting students that meet the needs of the labor market. However, the results show an absence of a statistically significant differences among the skills of accounting students that meet the requirements of the labor market from the point of view of academics. It is recommended that institutions of higher education provide sufficient flexibility towards the modification of curricula, and establish joint programs with relevant industries that help universities provide the needs of employers.
Keywords : Universities, Students, Accounting Education, Academics, Professionals, Curriculum, Skills
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The effect of psychological capital on team performance: The moderating role of leadership behavior in advertising agencies in Amman City
Authors : Nesreen Ayeda, Abdallah Bataineh, Mohammed Idris
Abstract : This research aimed at identifying the impact of psychological capital dimensions (self-efficacy, hope, optimism, and resilience) on team performance at advertising agencies operating in Amman city. Moreover, the study examines the moderating role of leadership behavior on the relationship between the psychological capital and team performance. The researchers rely on descriptive and analytical approach, where the research population consists of all employees working in thirteen advertising agencies operating in Amman city. Convenience sampling technique was applied to distribute (250) questionnaires on the research sample. To analyze the research data; the researchers used a set of statistical methods including Cronbach's alpha along with a normality test, standard deviation, exploratory factor analysis, confirmatory factor analysis, multiple regression, interactive hierarchical regression, and process procedures methods using SPSS-V20 and AMOS-V23. The results indicate that there was a statistically impact of psychological capital dimensions (self-efficacy, hope, optimism, and resilience) on team performance in advertising agencies operating in Amman city. There was also a significant and role for leadership behavior as moderating variable between psychological capital dimensions and team performance.
Keywords : Psychological, capital,
Leadership behavior
Team ,performance
Advertising agencies
Jordan
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The Skills of Accounting Students in Jordanian Universities - A Dual Perspective
Authors : Ali, N. & Idris, M.
Abstract : The aim of this study is to identify the skills of accounting graduates required in the labor market, and to find whether the academic education of accounting keeps pace with the developments occurring in the business world. To this end, a questionnaire was distributed to a sample consisting of forty academics and forty professionals. The study reached a number of results, the most prominent of which is the presence of a statistically significant differences among the skills of accounting students that meet the requirements of the labor market from the point of view of professionals. Additionally, the presence of statistically significant differences of the extent of agreement between professionals and academics on the importance of the skills of accounting students that meet the needs of the labor market. However, the results show an absence of a statistically significant differences among the skills of accounting students that meet the requirements of the labor market from the point of view of academics. It is recommended that institutions of higher education provide sufficient flexibility towards the modification of curricula and establish joint programs with relevant industries that help universities provide the needs of employers.
Keywords : Universities, Students, Accounting Education, Academics, Professionals, Curriculum, Skills
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The effect of psychological capital on team performance: The moderating role of leadership behavior in advertising agencies in Amman City
Authors : Ayed, N., Bataineh, A. & Idris, M
Abstract : This research aimed at identifying the impact of psychological capital dimensions (self-efficacy, hope, optimism and resilience) on team performance at advertising agencies operating in Amman city. Moreover, the study examines the moderating role of leadership behavior on the relationship between the psychological capital and team performance. The researchers rely on descriptive and analytical approach, where the research population consists of all employees working in thirteen advertising agencies operating in Amman city. Convenience sampling technique was applied to distribute (250) questionnaires on the research sample. To analyze the research data; the researchers used a set of statistical methods including Cronbach's alpha along with a normality test, standard deviation, exploratory factor analysis, confirmatory factor analysis, multiple regression, interactive hierarchical regression and process procedures methods using SPSS-V20 and AMOS-V23. The results indicate that there was a statistically impact of psychological capital dimensions (self-efficacy, hope, optimism and resilience) on team performance in advertising agencies operating in Amman city. There was also a significant and role for leadership behavior as moderating variable between psychological capital dimensions and team performance.
Keywords :Psychological capital Leadership behavior Team performance Advertising agencies Jordan
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Board Characteristics
Authors : Buraik, O. & Idris, M.
Abstract : This research aims to investigate the impact of board of directors’ characteristics on monitoring earnings management (EM) intentions in Jordan. The characteristics of concern include director certificates in economic sciences, directors’ turnover, CEO duality, board member remuneration and board meetings. For this purpose, an empirical analysis of a dataset of all publicly traded services firms listed on the Amman Stock Exchange (ASE) for the period 2014-2017 is conducted by applying logistic regression analysis. This research documents that directors’ turnover motivates beneficial EM, whereas CEO duality motivates opportunistic EM in Jordanian services firms. However, the results do not show significant effect of director certificates in economic sciences, board member remuneration and board meetings on monitoring EM intentions. It is recommended that the election of directors be subject to rigorous requirements that ensure the appointment of efficient directors who can distinguish managerial intentions. This is expected to lead to the structuring of an effective internal control system based on proper ethical codes of conduct.
Keywords : Board of Directors’ Characteristics, Earnings Management Intentions, Beneficial, Opportunistic
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The Moderating Role of Family Control on the Relationship between Audit Committee Financial Expertise and Earnings Management
Authors : Abu Siam, Y., Idris, M. & Al-Okdeh, S.
Abstract : The current study offers empirical evidence on the way the family ownership moderates the association that exists between the financial experience of the audit committee and earnings management based on a sample of 44 manufacturing firms that are registered with the Amman Stock Exchange (ASE) from 2012 to 2016. From the results of the study, there is a significant negative association between the financial experience of the audit committee and earnings management. In addition, the study shows a positive interaction of the financial experience of the audit committee and the family ownership on earnings management. This indicates that an increase in the percentage of audit committee members having financial expertise, in order to restrict earnings management, is less likely to be influential in the case of family controlled firms. These results have implications for policy makers and regulatory bodies in Jordan since they highlight the need to improve the good corporate governance practices and attempt to constrain the incidence of earnings management in Jordanian firms.
Keywords : audit committee financial expertise, earnings management, family ownership, Jordan
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The Impact of External Auditor Size on the Relationship between Audit Committee Effectiveness and Earnings Management
Authors : Idris, M., Abu Siam, Y. & Ahmad, A.
Abstract : This research aims to explore new evidence on the nature of the relationship between the effectiveness of audit committee and earnings management in one of the emerging economies, Jordan. In addition, it investigates how external auditor size might moderate this relationship. For this purpose, a panel data consisting of 64 industrial firms listed on Amman Stock Exchange (ASE) is used, covering the period between 2009 and 2014. An index consisting of four characteristics is developed to measure the effectiveness of audit committee, namely audit committee independence, size, meetings and financial expertise. Results show that audit committee effectiveness has a significant and negative impact on earnings management. Moreover, a positive interaction effect of external auditor size and audit committee effectiveness on earnings management is found, which is supportive of the substitute relationship between the external auditor size and effective audit committee in reducing earnings management. Policy makers and professional accounting bodies in Jordan might benefit from these results, as they show that legislative reforms can motivate firms to adopt good governance practices to mitigate earnings management.
Keywords : audit committee effectiveness, external audit, earnings management, Jordan
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RBoard independence, earnings management and the moderating effect of family ownership in Jordan
Authors : Idris, M., Abu Siam, Y. & Nassar, M.
Abstract : This research examines the moderating effect of family ownership over the relationship between board independence and earnings management. Using information of industrial companies indexed on Amman Stock Exchange, this research provides evidence of negative relationship between board independence and earnings management, proposing that higher percentage of board independence is related with more effective monitoring to reduce earnings management. Moreover, the results document that the relationship between board independence and earnings management becomes weak when there is an interaction with family ownership control. These outcomes indicate that an increase in the percentage of independent directors to mitigate earnings management is less likely to be influential in the case of family controlled firms. The results of this research could be valuable to regulators in their efforts to restrict the incidence of earnings management and improve the quality of monitoring mechanisms, especially in an environment where the capital market is still evolving and the legal protection and law enforcement are weak.
Keywords : Family control, board independence, earnings management, Jordan
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The Effect of Employee-Based Brand Equity on Organizational Citizenship Behavior: The Mediating Role of Job Satisfaction
Authors : Bataineh, A., Alfalah, T., Falah, J. & Idris, M.
Abstract : Despite the limited financial resources in Jordan; the sector of higher education plays strategic and significant role in leveraging the economics wheel, knowledge and social level of the Jordanian citizens. Based on that, this research aimed to investigate the effect of brand knowledge, role clarity and brand commitment as employee-based brand equity (EBBE) dimensions on organizational citizenship behavior (OCB) in the context of private universities in Jordan, likewise, to examine the role of job satisfaction as mediating variable. Methodologically; a self-administered questionnaire was developed based on previous measurements and related literatures, and has been distributed of a total sample of 680 academic staff working in private universities at Amman. However, the multiple regression findings showed that; role clarity was the most effective predictor on organizational citizenship behavior, followed by brand commitment and brand knowledge respectively. Moreover, job satisfaction was found to play a key role as mediating variable. Consequently, managerial implications, recommendations and limitations were also discussed.
Keywords : Brand Knowledge, Role Clarity, Brand Commitment, Job Satisfaction, Organizational Citizenship Behavior
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The Accounting Profession between Religious and Professional Codes
Authors : Saadeh, Y., Alsmady, A., Warrad, L., Idris, M. & Elrajabi, M.
Abstract : Many agree on the importance of adopting ethics to improve the lives of communities and institutions. Given the increase in fraud cases globally despite the introduction of professional codes of conduct, this study explored whether there is room for an alternative approach to solving the problem of fraud. To this end, the study compares the ethical codes derived from religion and established global codes to determine which is most effective in addressing the problem of fraud in the auditing profession. Using a qualitative approach that examined published literate, the authors compared the International Accounting Standards (IAS) and US auditing standards with Islamic ethics and concluded that the former two do not mitigate fraud in auditing. Furthermore, the study found that adopting Islamic ethics could be a good governance mechanism to eliminate fraud.
Keywords : Accounting Profession, Ethical Principles (Code of Ethics), Audit Failure, Fraud
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The Impact of Budgetary Participation on Managerial Performance - Evidence from Jordanian University Executives
Authors : Mah’d, O., AL-Khadash, H., Idris, M. & Ramadan, A.
Abstract : This research investigates the relationship between the budgetary participation and the managerial performance in a developing country context (Jordan). Managerial performance is measured using the modified nine items of (Mahoney et al., 1965). It uses the questionnaire method as the main method of research and also employs archival documents, observations, and reports in order to accomplish the study objective. Questionnaires were distributed to 131 university executives, of whom 77, in five private universities, replied. The findings suggest that the performance indicators of the respondents who participate in the budget are significantly better than the performance indicators of the respondents who do not participate in the budget. This study tests these differences using the Mann-Whitney test. Further analysis is carried out and the findings support previous results. The results of this current study have a value for decision makers of the higher education institution in addition to the university executives in a matter of increasing the awareness for the importance of budgetary participation
Keywords : Participation, budgeting, managerial performance, universities
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RThe Effect of the Implementation of the IAS 39 on the Jordanian Investors
Authors : Nimer, K., Idris, M., Al-Okdeh, S. & Nassar, M.
Abstract :IAS 39 has been described as being the most difficult standard to be implemented and understand The main aims of this research were to examine the effect of the implementation of IAS 39 on the investment's decisions of individuals and institutions in Jordan; to evaluate the understanding of IAS 39 by Jordanian investors and the effect of their understanding upon their investment decisions; and to examine the effect of some factors such as the degree of knowledge and the nature (individual or institution) of the investor on the degree of understanding of this IAS because. In the current study, Firstly, the results supported the first hypothesis that the implementation of IAS 39 would affect the reported profits of companies and, consequently, Jordanian investors would decrease their investment in these companies. Secondly, no significant differences were found between different fields of education, different professional certificates, and different years of experience with regards to the understanding of the implementation of IAS 39 and its effect; but statistical differences were found between different levels of education at the 5% level, and between individual and institutional investors at the 10% level.
Keywords : International Accounting Standard, IAS 39, Fair value
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