ISSN: 2225-8329
Open access
The COVID-19 pandemic worsened during 2019, and it came to confirm the importance of implementing governance mechanisms in light of what the pandemic revealed that the weakness of governance mechanisms was one of the factors that contributed to the decline in performance of many companies during the pandemic, which prompted companies to rely on the best effective governance mechanisms; to deal with the risks resulting from the pandemic, and to disclose them transparently, to ensure the survival of companies in light of the challenges posed by the COVID-19 pandemic. Therefore, this study came to investigate the impact of the internal governance mechanisms (the board of directors and the audit committee) on the corporate risk disclosure of industrial companies listed on the Amman Stock Exchange in light of the COVID-19 pandemic. The descriptive statistical approach was used, and the study population consisted of workers in the board of directors and the audit committee in industrial companies, (80) questionnaires were distributed, the number of questionnaires retrieved and valid for analysis was (70) questionnaires. The study showed the existence of a statistically significant impact of the internal governance mechanisms (the board of directors and the audit committee) on corporate risk disclosure in industrial companies. The study recommended that industrial companies, in light of emergencies and uncertainties, constantly review their strategies and policies for dealing and disclose any risks that may result from those emergencies or uncertainties.
Abdel Razek, M. (2014). The Association Between Corporate Risk Disclosure and Firm Performance in Emerging Country- The Case of Egypt. Journal of Empirical Studies, 1(3),105-115.
Abu Haliqa, A., & Mohalhal, S. (2019). The role of the internal auditor as one of the governance mechanisms in the face of financial corruption. The Third International Scientific Conference of the Faculty of Economics and Trade - Institutions and Development Problems in Developing Countries, Libya as a Model, 11-12/11/2019, 653-674.
Adaa, A. H., & Hanefah, M. M.(2018).Board characteeistic and muslim ownership structure on value relevence of accounting information: Evidence from malaysian shariah compliant companies. The Journal of Muamalat and Islamic Finance Research. 15( 2). 39-53
Al-Barawi, M. (2018). The impact of applying governance mechanisms on credit, liquidity and capital risks. The Scientific Journal of Commercial and Environmental Studies, 9 (2/2), 371-384.
Al-Shahed, R., & Al-Kurdi, A. (2018). The impact of the characteristics of the board of directors and audit committees on the quality of profits - evidence from Jordanian commercial banks. The Jordanian Journal of Applied Sciences - Human Sciences Series, 20(1), 121-136.
Al-Sharabi, M., & Al-Dabbagh, L. (2019), an analytical study of governance mechanisms in Islamic banks and their impact on the level of risk disclosure in financial reports and statements, Al-Rafidain Development Journal, 38 (123), 93-109.
Alzoubi, E., & Selamat, M. (2012). The effectiveness of corporate governance mechanisms on constraining earning management: Literature review and proposed framework , International Journal of Global Business, 5 (1),17-35.
Almania, O. M.(2019). Risk disclosure, corporate governance, and cost of capital of Saudi listed firms. PhD thesis, university of Glasgow, Scotland,United Kimgdom.
Ashari, S., & Krismiaji, K. (2019). Audit Committee Characteristics and Financial Performance: Indonesian Evidence. Equity, 22(2), 139-152. doi.org/10.34209/equ.v22i2.1326
Atkins, J., Buchling, M., Dannielle, C., & Lange, Y. (2020). Accounting governance and integrated thinking in the context of COVID-19, See discussions, stats, and author profiles for this publication at:https://www.researchgate.net/publication/341553718
Bajra, U., & Cadez, S. (2017). The Impact of Corporate Governance Quality on Earnings Management: Evidence from European Companies Cross-listed in the US. Australian Accounting Review, 28(2), 152–166. doi:10.1111/auar.12176
Biswas, P.K.(2020). Corporate governance and stock liquidity: evidence from a
speculative market. Accounting Research Journal, 33(2), 323- 341. DOI 10.1108/ARJ-01-2019-0005
Bruynseels, L., & Cardinaels, E. (2014). The Audit committee: Management Watchdog or Personal Friend of the CEO? .The Accounting Review, 89(1), 113–145. doi:10.2308/accr-50601.
Buallay, A., & Aldhaen, E. (2018). The relationship between audit committee characteristics and the level of sustainability report disclosure. 17th Conference on e-Business, e-Services and e-Society (I3E), Oct 2018, Kuwait City, Kuwait. 492-503, ff10.1007/978-3-030-02131-3_44ff. ffhal-02274149f
Dicuonzo, G., Fusco, A., & Dell’Att, V. (2017). Financial Risk Disclosure: Evidence from Albanian and Italian Companies.EBEEC Conference Proceedings, The Economies of Balkan and Eastern Europe Countries in the Changed World, KnE Social Sciences, pages 182–196. DOI 10.18502/kss.v1i2.656
Eluyela, D. F., Akintimehin, O. O., Okere, W., Ozordi, E., Osuma, G. O., Ilogho, S. O., & Oladipo, O. A. (2018). Board meeting frequency and firm performance: Examining the nexus in Nigerian deposit money banks. Heliyon, 4(10). doi.org/10.1016/j.heliyon.2018.e00850
Gao, X., & Yu, J. (2020). Public governance mechanism in the prevention and control of the COVID- 19: information, decision-making and execution, Journal of Chinese Governance,5(2) ,178-197, DOI: 10.1080/23812346.2020.1744922
Garcia, L., Barbadillo, E., & Perez, M. (2010). Audit committee and internal audit and the quality of earnings: empirical evidence from Spanish companies. Journal of Management & Governance, 16(2), 305- 331.
Gebba, T. R.(2015). Corporate governance mechanisms adopted by UAE national commercial banks. Journal of Applied Finance & Banking, 5( 5), 23-61.
Gibson, C. H.(2013).Financial Reporting &Analysis: Using Financial Accounting Information(11th ed.), United States:South-Western Cengage Learning.
Gonidakis, F., Koutoupis, A., Kyriakogkonas, P., & Lazos, G.(2020).Risk disclosures in annual reports: The role of nonfinancial vompanies listed on the Athens Stock Exchange. Journal of Operational Risk,16(3), Available at
SSRN: https://ssrn.com/abstract=3946430
Haji, A. A, & Anifowose, M. (2016). Audit Committee and Integrated Reporting Practice: Does Internal Assurance Matter.Managerial Auditing Journal, 31 ( 8), 915-948
Haladu, A., & Salim, B. B. (2016). Board characteristics and sustainability reporting: Environmental agencies’ moderating effects. International Journal of Economics and Financial Issues, 6(4), 1525-1533.
Hassan, A., Elamer, A., Lodh, S., & Rebortes, L. (2021). The future of non-financial businesses reporting: Learning from the Covid-19 pandemic. Corporate Social Responsibility and Environmental Management, 28:1231–1240. https://doi.org/10.1002/csr.2145
Hill, C. L., & Jones, G. R. (2009). Strategic Management Essentials(2nd edition). South Western Cengage Learning, China.
Hundal, S. (2013). Independence, Expertise and Experience of Audit Committees: Some Aspects of Indian Corporate Sector. American International Journal of Social Science, 2(5),58-75.
Issuer Companies Disclosure Instructions, Accounting Standards and Auditing Standards for the year 2004 and their amendments up to 2019 (2019), Securities Commission, Jordan, Amman
Jebran, K., & Chen, S. (2020). Can we learn lessons from the past? COVID-19 crisis and corporate governance responses, International Journal of Finance & Economics, Vol.2, No.2, National Natural Science Foundation of Chine, DOI: 10.2139/ssrn.3753578, 1-9.
Kamran, & Shah, A.(2014). The Impact of Corporate Governance and Ownership Structure on Earnings Management Practices: Evidence from Listed Companies in Pakistan. The Lahore Journal of Economics, 19 ( 2), 27–70.
Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. J Bus Ethics, 114,207–223. DOI 10.1007/s10551-012-1336-0
Latif, A. S., & Abdullah, F. (2015). The effectiveness of corporate governance in constraining earnings management in Pakistan. The Lahore Journal of Economics, 20 (1),135–155.
Lee, C., Chung, K. H., & Yang, S. (2016). Corporate Governance and the Informational Efficiency of Prices. Financial Management, 45(1), 239–260.
doi:10.1111/fima.12104
Liang, Q., Xu,P., & Jiraporn, P. (2013). Board characteristics and Chinese bank performance. Journal of Banking & Finance, 37(8), 2953–2968. doi:10.1016/j.jbankfin.2013.04.018
Mousa, M., Judit, S., & Zeman, Z. (2018). The impact of credit and capital risk on the banking performance: Evidence from Syria. Journal of Management, 32(1), 107 112.
Noor, A., & Rashwan, A. (2021). The expected role of corporate governance mechanisms to mitigate the effects of the Covid-19 pandemic crisis. The Third Conference of the Faculty of Economics and Social Sciences, An-Najah National University, Sunday 11/4/2021
Ntim, C. G., Lindop, S., & Thomas, D. A. (2013). Corporate Governance and Risk Reporting in South Africa: A Study of Corporate Risk Disclosures in the Pre- and Post-2007/2008 Global Financial Crisis Period , International Review of Financial Analysis, 30, 363-383
Oussii, A. A., & Taktak, b. N. (2018). Audit committee effectiveness and financial reporting timeliness. African Journal of Economic and Management Studies, 9(1), 34–55. doi:10.1108/ajems-11-2016-0163
Qadri, S. A. (2018). The impact of the characteristics of audit committees on the disclosure of the social responsibility of Jordanian public shareholding companies - an applied study. Unpublished master's thesis, Yarmouk University, Irbid, Jordan.
Paine, L., & McLean, J. (2020). Covid-19 Is Rewriting the Rules of Corporate Governance, Harvard Business Review, https://hbr.org/2020/10/covid-19-is-rewriting-the-rules-of-corporate-governance, 1-10.
Rashwan, A., & Alhelou, E. (2021). The role of applying good governance mechanisms to contribute to increasing confidence in integrated reporting in light of the Covid-19 pandemic. Delta University Scientific Journal, 4 ,(1),299- 323.
Shabita, M., & Shatnawi, H. (2020). The impact of the characteristics of audit committees on the efficiency of intellectual capital in commercial banks - an applied study. Journal of the Islamic University of Economic and Administrative Studies, 28(1), 204-227.
Sivathaasan, N., Ali, S., Liu, B., & Huang, A. (2018). Stock liquidity, corporate governance, and leverage: New panel evidence. Griffith University, Department of Accounting, Finance and Economics
Villiers, C., & Dimes, R. (2020). Determinants, mechanisms and consequences of corporate governance reporting: a research framework, Journal of Management and Governance, 25(2),7-26.doi.org/10.1007/s10997-020-09530-0
In-Text Citation: (Almasaeid, 2022)
To Cite this Article: Almasaeid, I. S. (2022). The Board of Directors and the Audit Committee as Internal Governance Mechanisms and their Impact on Corporate Risk Disclosure in Light of COVID-19 Pandemic. International Journal of Academic Research in Accounting Finance and Management Sciences, 12(2), 44-55.
Copyright: © 2022 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode