ISSN: 2222-6990
Open access
The study examined the effect of board of directors on completeness of financial reports of listed companies in Jordan. The study used correlational research design. The data which collected from the published annual financial reports of 172 companies listed in Jordan. The data collected was analyzed using STATA software, and the result showed that there is a positive and significant relationship between board of director (board size, board independence and leadership structure) and completeness of financial reporting. In addition, there is a positive role for the board of directors to oversee the preparation and publication of financial reports. The study hereby recommend that companies to disclose all the items that must be in the annual financial reports as this has become necessary in view of their impact on investor decisions.
Alghamdi, S., & Ali, L. (2012). Investigation into earnings management practices and the role of corporate governance and external audit in emerging markets: Empirical evidence from Saudi listed companies (Doctoral dissertation, Durham University).
Anderson, R. C., S. A. Mansi, and D. M. Reeb, (2004). Board characteristics, accounting report integrity, and the cost of debt, Journal of Accounting and Economics 37, 315-342.
Anonymous (2006). Conceptual Framework for financial reporting: Preliminary Views, Financial Accounting Standards Board (FASB) of the Financial Accounting Foundation, No. 1260-001.
Australian Securities Exchange (ASX) Corporate Governance Council, (2007). Corporate governance principles and recommendations, 2nd edition (ASX, Sydney)
Baysinger, B., and H. Butler, (1985). Corporate governance and the board of directors: Performance effects of changes in board composition, Journal of Law, Economics, & Organization 1, 101-124.
Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud, The Accounting Review 71, 443-465.
Bhattar, M. M. (1995). Corporate Published Accounting Information and Investors (p. 6). ISBN-81-900422-9-7, Books Treasure Jodhpur, India.
Cadbury Committee (Committee on the Financial Aspects of Corporate Governance (Sir Adrian Cadbury, chair), 1992, Report (Gee and Company Ltd, London).
Chiang, H-T. (2005). An empirical study of corporate governance and corporate performance, Journal of American Academy of Business 6, 95-101.
Coulton, J., C. James, and S. Taylor, (2001). The effect of compensation design and corporate governance on the transparency of CEO compensation disclosures, Working Paper (University of Technology, Sydney).
Dechow, P.M., R.G. Sloan, and A. P. Sweeney, (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement by the SEC’, Contemporary Accounting Research 13, 1-36.
DeFond, M. L. & Jiambalvo, J. (1994). Debt covenant violation and manipulation of accruals. Journal of accounting and economics, 17(1-2), 145-176.
Dichev, I. D. & Skinner, D. J. (2002). Large–sample evidence on the debt covenant hypothesis. Journal of accounting research, 40(4), 1091-1123.
Fama, E. F. and M. Jensen, (1983a). Separation of ownership and control, Journal of Law and Economics 26, 301-325.
Fama, E. F. and M. Jensen, (1983b), Agency problems and residual claims, Journal of Law and Economics 26, 327-349.
Flack, T., Douglas, E. (2007). The role of annual reports in a system of accountability for public fundraising charities, PhD Dissertation, Queensland University of Technology.
Forker, J.J. (1992). Corporate governance and disclosure quality, Accounting and Business Research 22, 111-124.
Gupta, S.K. and Mehra, A. (2002). Contemporary Issues in Accounting, ISBN- 81- 272-0389-0, p.1.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis: A global perspective (8th ed.). New Jersey: Pearson.
Haniffa, R., and M. Hudaib, (2006). Corporate governance structures and performance of Malaysian listed companies, Journal of Business Finance and Accounting 33, 1034-1062.
Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of accounting and economics, 31(1-3), 405-440.
Ho, S.S.M., Wong, K.S. (2003). Preparers’ perceptions of corporate reporting and disclosure. International Journal of Disclosure and Governance 1:1, 71-81.
Hooks, J., Coy, D., & Davey, H. (2002). The information gap in annual reports. Accounting, Auditing & Accountability Journal, 15(4), 501-522.
Jensen, M. C., (1993). The modern industrial revolution, exit, and the failure of internal control systems, Journal of Finance 48, 831-880.
JSC. (2015). Jordan securities Commission. Annual report. Amman Jordan http://www.jsc.gov.jo/library/635995107208802178.pdf.
In-Text Citation: (Alqaraleh & Ahmad, 2018)
To Cite this Article: Alqaraleh, M. H. S., & Ahmad, N. (2018). The Impact of the Board of Directors Characteristics on the Completeness of Financial Reports in Jordan. International Journal of Academic Research in Business and Social Sciences, 8(11), 151–160.
Copyright: © 2018 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