The Effect of the Impairment of Assets Accounting on the Informativeness of Earnings: Ability to Predict Future Cash Flows, Earnings Persistence, Ability to
Predict Future Sales
Authors : Almasri, B.
Abstract : Many research tested the value-relevance and value-reliability of earnings (Finger 1994; Kross & Kim 2005; Altamuro et al., 2005; Bandyopadhyay et al., 2010; Lee & Yoon 2012). But literature is divided into two perspectives, some support the fair value and others do not. This motivates the researcher to provide new evidence of the effect of the impairment accounting on the earnings informativness, with adding a new dimension for the earnings predictability from Jordan. The results of this research show that there is a difference between firms who adopt IAS36 and firms that do not adopt the standard. Thus, one of the rules of fair value accounting, and IAS36 is to provide information that has more value relevance and reliability to help users in their decision. Also, there is no trade-off between relevance and reliability in explaining the earning-share price relationship, and not the value relevance nor the reliability play any role in this association, which shows firms that adopt IAS36 and firms who do not adopt IAS36 have the same earning usefulness. This research and many others support the new era of the fair value based on the evidence collected from many countries and for many periods, but this new regulation is mixed regarding the
application pressure.
Keywords : Asset Impairment, Informativeness, Value Relevance, Value Reliability, IFRS
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The role of enterprise risk management on disclosure transparency in the international
financial reporting standards period
Authors : Almasri, B.
Abstract : This research empirically investigates the role of the enterprise risk management system implementation level in capturing firm managerial incentives. The system plays an important role in understanding the association between international financial reporting standards and the capital market. Listed firms in the Australian market were used for the period 2000-2010 for this purpose. The study results imply that implementing higher levels of ERM by Australian firms during the mandatory IFRS adoption period does not capture firm incentives in IFRS period. Consequently, these results suggest that the implementation of ERM by Australian firms does not reduce the contractual costs between investors and management, whilst adopting IFRS does. Future research may use other techniques and/or strategies other than ERM, to capture the firm incentives, and as a
result, may have economic consequences.
Keywords : Enterprise Risk Management
International Financial Reporting
Standards
Disclosure Transparency
Firm Incentives
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The association between Corporate Social Responsibilities
Disclosure and Ownership Structure: An Empirical Study on
Companies listed in ASE
Authors : Alkhalaileh, M. & Almasri, B.
Abstract :
The study aims to examine the association between corporate social responsibility disclosures (CSRD) and ownership structure for 82 non-financial companies listed in ASE over the 5-years period (2008-2012). The study employed correlation and multiple regression analyses to test the study's predictions. Consistent with the study predictions, and most prior studies' findings, empirical results indicate that both foreign ownership and government ownership are significantly positively associated with firm's CSR activities, while managerial ownership is negatively significantly associated firm's CSR activities. However, contrary to the study's predictions institutional holding is negatively associated with CSR disclosures. In addition, the study's results confirms prior studies'
findings which report positive association between firm's age and size with CSR disclosures. However, the study did not detect evidence in support of significant association of CSR disclosure with ownership concentration
Keywords :
CSR, Ownership structure, Institutional ownership, Foreign ownership, Ownership concentration, managerial ownership, Government ownership, Jordan, ASE
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The Role of Enterprise Risk Management on cost of equity capital in the International Financial Reporting Standards Period
Authors : Almasri, B; Alfityani, A; Mansur, H; & Maali, H.
Abstract :
Results and Contribution: The results of the study suggest that the use of high-performance ERM by Australian companies while the obligation to adopt IFRS has no statistically significant impact on equity capital costs. Together, the use of high-quality ERM by Australian firms during the IFRS period, is not seen by investors as a sign of greater transparency and does not encourage investors to use a lower discount rate to reduce future cash flows, which, in turn, contributes to equitable financial costs. As a result, these results suggest that the implementation of ERM by Australian firms does not reduce contract costs between investors and managers, while adoption of IFRS declines.
Purpose: This study emphatically investigates the role of the standard implementation of a business risk management system at equitable financial costs. This system plays an important role in understanding the relationship between international financial reporting standards and the financial market.
Gap: This study fills the gap by exploring the market benefits of compulsory IFRS acquisition funding from the point of view of ERM dynamically.
Relevance: the research builds on the argument around agency theory, signaling theory, and contingency theory, by introducing empirical evidence of capital market reaction for signaling an ERM system during the IFRS period adoption, which as a result, may reduce costs of conflict between firm management and stockholders.
Methodology: Listed companies in the Australian market are used for the period 2000-2010 for this purpose. Panel data are analyzed by retrospective model in order to achieve the research objective by providing a reference to ERMIL's role in the economic outcomes of IFRS acquisition, with its indirect impact on strong compensation.
Keywords : Business Risk Management, International Financial Reporting Standards, Equitable Cost of Expenditure, Strong Profits
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The Impact Of Comprehensive Income Disclosure On Earnings Management: An Empirical Study Of Jordanian Companies Listed On Amman Stock Exchange Bisan Almasri Hasan Mansur
Authors : Almasri, Mansur, H; & sunoco, D.
Abstract : Research Purpose: This study empirically investigates the impact of OCI disclosure (measured as other comprehensive income divided by comprehensive income) on earnings management (measured by discretionary accruals based on modified Jones model). Methodology: This research used cash flow from operations (CFO), current ratio (CR), debt ratio (DR), and SIZE as control variables. Furthermore, the study covers a five-year period (2009-2013) sing a sample of (138) Jordanian firms. Using Pearson correlation and stepwise regression analyses for all sample firms and each sector independently. Research Finding: The results indicate that OCI does not have an impact on earnings management. Although size has a negative impact on earnings management, other control variables (CFO,CR,and DR) have no effect on earnings management.
Keywords : Financial Accounting Standard Board, International Accounting Standard Board, Other
Comprehensive Income, Earnings Management, discretionary accruals.
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The Sustainability Of Social Responsibility On The Performance Of Jordanian Insurance Companies.
Authors : ALFITYANI, A; AL-MASRI, B; MANSUR, H and MAALI, H.
Abstract : he studies investigates the spending on sustainability of social responsibility on the performance of Jordanian insurance companies. The major importance of the study is to understand the impact of implementing spending on social responsibility on the performance of Jordanian Insurance companies. The study adopted a special sampling technique which is the nonprobability technique sample derived from the annual reports. The study grouped the annual reports into various strata according to the
categories of social responsibility spending. The researcher used descriptive analyses to achieve the objectives of the study through using E-views (panel test “random and fixed) for testing the hypotheses, also the study consists of (30) Jordanian Insurance companies listed and traded in Amman financial market for five years from 2012 to 2019. The results show that spending on human resource dimension has an effect on return on assets (ROA), return on equity (ROE). Although not on earnings per shares (EPS). On the other side, the environmental dimension has no impact on in ROA, ROE, and EPS.
Keywords : Sustainability of Social Responsibility, Performance, Jordanian insurance companies, ROA,
ROE, EPS.
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Avoiding uncertainty by measuring the impact of perceived risk on the intention to use financial artificial intelligence
services
Authors : Al-Gasawneh, J: Alfityani, A, al-Okdeh:, AlmasriB: Mansu, H: . Nusairata, N:
and Abu Siam, Y.
Abstract : The moderating role of influencer endorsement and perceived monetary benefits on the relationship between perceived risk and financial artificial intelligence services was explored in this study. Data were obtained through questionnaires distributed to 200 respondents who were selected using a purposive sampling method. The respondents were customers receiving financial
artificial intelligence services in Jordan. Analysis was performed using a structural equation modeling approach run by Smart-partial least squares (PLS) 3.2.9 involving data from 138 returned
questionnaires. The results show a negative impact of perceived risk on financial artificial intelligence services, and a moderation effect of influencer endorsement and perceived monetary
benefits on the relationship between perceived risk and financial artificial intelligence services. The findings can assist companies in their strategies of decreasing perceived risks that individuals
could be encouraged to utilize business intelligence applications, for instance, financial technology services.
Keywords : Artificial Intelligence
Perceived Risk
Perceived Monetary Benefit
Influencer Endorsement
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The Influence Of Culture And Corporate Governance
On Corporate Performance Of Jordanian Financial
Companies
Authors : HOUDALEQEDAT,HASAN MANSUR,ABDUL AZIZ ABDL RAHMAN,
AHMAD,SHATNA, AMJED,ALFITYANI: and BISAN ALMASRI.
Abstract : The current study aims to examine the influence of Culture and corporate governance on the corporate
performance of Jordanian financial companies. The results of the current study will contribute to the literature in
light of the lack of local studies in this regard. Study sample consists of 105 financial companies listed on ASE.
For this purpose, this study used agency theory and Hofstede theory. To measure the culture the study used the
six of Hofstede's cultural dimensions LPD; MAS; COLL; HUAI; LTO; REST. To measure the corporate
governance the study used the board size; Independence of BOD; Non-CEO duality; Board committees, largest
OWS LO; Foreign OWS (FO); and government OWS (GO). The current study indicated empirical evidence that
there is no relationship between culture and CP with the presence of corporate governance in the Jordanian
context. However, there is the additional explanatory power of cultural dimensions in explaining the variances
in corporate performance with the presence of CG. Given the importance of culture and its relationship with
corporate governance and performance, and in light of the lack of local studies, future studies must be conducted
in this regard.
Keywords : Culture, Corporate governance, Corporate performance, Jordanian companies.
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The Effect of the Impairment of Assets Accounting on the Informativeness of Earnings: Ability to Predict Future Cash Flows, Earnings Persistence, Ability to Predict Future Sales
Authors : Almasri, B.
Abstract : Many research tested the value-relevance and value-reliability of earnings (Finger 1994; Kross & Kim 2005; Altamuro et al., 2005; Bandyopadhyay et al., 2010; Lee & Yoon 2012). But literature is divided into two perspectives, some support the fair value and others do not. This motivates the researcher to provide new evidence of the effect of the impairment accounting on the earnings informativeness, with adding a new dimension for the earnings predictability from Jordan. The results of this research show that there is a difference between firms who adopt IAS36 and firms that do not adopt the standard. Thus, one of the rules of fair value accounting, and IAS36 is to provide information that has more value relevance and reliability to help users in their decision. Also, there is no trade-off between relevance and reliability in explaining the earning-share price relationship, and not the value relevance nor the reliability play any role in this association, which shows firms that adopt IAS36 and firms who do not adopt IAS36 have the same earning usefulness. This research and many others support the new era of the fair value based on the evidence collected from many countries and for many periods, but this new regulation is mixed regarding the application pressure.
Keywords : Asset Impairment, Informativeness, Value Relevance, Value Reliability, IFRS
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The role of enterprise risk management on disclosure transparency in the international financial reporting standards period
Authors : Almasri, B.
Abstract : This research empirically investigates the role of the enterprise risk management system implementation level in capturing firm managerial incentives. The system plays an important role in understanding the association between international financial reporting standards and the capital market. Listed firms in the Australian market were used for the period 2000-2010 for this purpose. The study results imply that implementing higher levels of ERM by Australian firms during the mandatory IFRS adoption period does not capture firm incentives in IFRS period. Consequently, these results suggest that the implementation of ERM by Australian firms does not reduce the contractual costs between investors and management, whilst adopting IFRS does. Future research may use other techniques and/or strategies other than ERM, to capture the firm incentives, and as a result, may have economic consequences.
Keywords : Enterprise Risk Management International Financial Reporting Standards Disclosure Transparency Firm Incentives
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The association between Corporate Social Responsibilities Disclosure and Ownership Structure: An Empirical Study on Companies listed in ASE
Authors : Alkhalaileh, M. & Almasri, B.
Abstract : This thesis empirically investigates the role of the enterprise risk management system implementation level in capturing firm managerial incentives. This system plays an important role in understanding the association between international financial reporting standards and the capital market. Listed firms in the Australian market were used for the period 2000-2010 for this purpose, and the Australian market was chosen because it is considered to be a strong legally enforced capital market. Descriptive statistic tests were used to study the sample characteristics. In addition, panel data is analysed in two regression models to achieve the study goals by providing a reference to compare the use of international financial reporting standards (IFRS) and generally accepted accounting principles (GAAP) periods in Australia, as Australia adopted IFRS as of January 1st 2005, thus enabling an analysis of their effect on firm incentives and cost of equity capital. Finally, the researcher used the results of the term 'IFRSA*ERMIL' in the two regression models, to capture the role of ERMIL on the economic consequences of IFRS adoption, through its indirect effect on firm incentives. The study results imply that IFRS adoption has a statistically significant negative effect on firm disclosures transparency _ with a positive effect on earning management_ when compared with GAAP adoption for the three models. Also, IFRS were found to have a statistically significant positive effect on cost of equity capital, which implies that the adoption of IFRS by Australian firms increases cost of equity capital for firm stock. Furthermore, implementing higher levels of ERM by Australian firms during the mandatory IFRS adoption period has no statistically incremental effect on the cost of equity capital, thus adopting higher level of ERM does not capture firm incentives in IFRS period. Together, implementing higher level of ERM by Australian firms in IFRS period, is not recognised by investors as a signal of more transparent disclosures nor does it encourage investors to use low discount rate to discount future cash flows, which as a result, does not have an effect on cost of equity capital. Consequently, these results suggest that the implementation of ERM by Australian firms does not reduce the contracual costs between investors and management, whilst adopting IFRS does. Future research may use other techniques and/or strategies other than ERM, to capture the firm incentives, and as a result, may have economic consequences.
Keywords : CSR, Ownership structure, Institutional ownership, Foreign ownership, Ownership concentration, managerial ownership, Government ownership, Jordan, ASE
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The Role of Enterprise Risk Management on cost of equity capital in the International Financial Reporting Standards Period
Authors : Almasri, B; Alfityani, A; Mansur, H; & Maali, H.
Abstract : This thesis empirically investigates the role of the enterprise risk management system implementation level in capturing firm managerial incentives. This system plays an important role in understanding the association between international financial reporting standards and the capital market. Listed firms in the Australian market were used for the period 2000-2010 for this purpose, and the Australian market was chosen because it is considered to be a strong legally enforced capital market. Descriptive statistic tests were used to study the sample characteristics. In addition, panel data is analysed in two regression models to achieve the study goals by providing a reference to compare the use of international financial reporting standards (IFRS) and generally accepted accounting principles (GAAP) periods in Australia, as Australia adopted IFRS as of January 1st 2005, thus enabling an analysis of their effect on firm incentives and cost of equity capital. Finally, the researcher used the results of the term 'IFRSA*ERMIL' in the two regression models, to capture the role of ERMIL on the economic consequences of IFRS adoption, through its indirect effect on firm incentives. The study results imply that IFRS adoption has a statistically significant negative effect on firm disclosures transparency _ with a positive effect on earning management_ when compared with GAAP adoption for the three models. Also, IFRS were found to have a statistically significant positive effect on cost of equity capital, which implies that the adoption of IFRS by Australian firms increases cost of equity capital for firm stock. Furthermore, implementing higher levels of ERM by Australian firms during the mandatory IFRS adoption period has no statistically incremental effect on the cost of equity capital, thus adopting higher level of ERM does not capture firm incentives in IFRS period. Together, implementing higher level of ERM by Australian firms in IFRS period, is not recognised by investors as a signal of more transparent disclosures nor does it encourage investors to use low discount rate to discount future cash flows, which as a result, does not have an effect on cost of equity capital. Consequently, these results suggest that the implementation of ERM by Australian firms does not reduce the contracual costs between investors and management, whilst adopting IFRS does. Future research may use other techniques and/or strategies other than ERM, to capture the firm incentives, and as a result, may have economic consequences.
Keywords : Business Risk Management, International Financial Reporting Standards, Equitable Cost of Expenditure, Strong Profits
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