The Impact of Corporate Governance on Earnings Quality of Public Shareholding Companies listed in Amman Stock Exchange (ASE): Empirical Study أثر حوكمة الشركات على جودة الارباح في الشركات المساهمة العامة الاردنية المدرجة في سوق عمان المالي: دراسة إختبارية

أبو النادي, شادن سامي (2018) The Impact of Corporate Governance on Earnings Quality of Public Shareholding Companies listed in Amman Stock Exchange (ASE): Empirical Study أثر حوكمة الشركات على جودة الارباح في الشركات المساهمة العامة الاردنية المدرجة في سوق عمان المالي: دراسة إختبارية. Masters thesis, جامعة الشرق الاوسط.

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Abstract

The researcher examined the impact of corporate governance practices on the quality of reported earnings of public shareholding companies listed in ASE. It examined the impact of the four most important corporate governance variables of public shareholding companies listed in ASE; number of board of directors members, number of board of directors meetings, number of audit committee members, number of audit committee meetings. The study used the total accruals model by Richardson and applied it on a sample of 60 companies of the population which included 131 companies listed in ASE from the financial, industrial and services economic sectors in Jordanian ASE for the period 2013-2016. The researcher used descriptive statistical analysis: through measuring mean, maximum, minimum values, and standard deviation, Smirnov and Shapiro Normality Tests, Multicollinearity through variance inflation factor (VIF) and tolerance, Pearson Correlation Matrix and Multiple regression to test the hypotheses of the study. XIII The researcher found a significant impact of CG practices when considered as a whole unit on earnings quality in public shareholding companies listed in ASE. It also revealed that there is a positive significant impact of the number of board of directors’ members on earnings quality. The study also found no significant impact of the number of boards of directors’ meetings, the number of audit committee members and the number of the audit committee’s meetings on earnings quality. Finally, the researcher recommended enforcing penalties on creative accounting policies, raising the awareness for the implementation of CG practices, focusing on the independence of the BOD members, setting a minimum requirement for the audit committee members and forming a CG committee and a risk management committee. Key Words: corporate governance, earnings quality, Amman stock exchange, board of directors, audit committee.

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