THE IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL REPORTING RELIABILITY: EMPIRICAL STUDY OF BANKS LISTED ON PALESTINE SECURITIES EXCHANGE AND AMMAN STOCK EXCHANGE
Loading...
Date
2022-10-23
Authors
Ahmed Taha AlKawamleh
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This current study aimed to find out the impact of corporate governance on financial reporting reliability of banks listed on Palestine Securities Exchange and Amman Stock Exchange. To that end, the researcher administered a questionnaire to sample of 350 employees in senior management levels in banks listed on Palestine Securities Exchange and Amman Stock Exchange. To test the hypothesis, the study used SPSS software package and the most appropriate statistical methods such as regression models.
The governance was measured by four variables: the board of directors, audit committee, disclosure and transparency and stakeholder right. The reliability of financial reports were measured by completeness of the data, impartiality of the reports and accuracy and error free.
After data analysis, it was found that the level of applying corporate governance standards in banks, listed on Palestine Securities Exchange and Amman Stock Exchange was high. Besides, the level of reliability of financial reports in banks was also high. The results also showed a statistically significant impact of board of directors on the reliability of financial reports of the listed banks. There was also a statistically significant impact of audit committee on the reliability of financial reports of banks. Moreover, there was a statistically significant impact of disclosure and transparency and shareholders’ rights on the reliability of financial reports in banks. However, there were no statistically significant differences between banks listed on the Palestine Securities Exchange and banks listed on the Amman Stock Exchange which could be attributed to corporate governance. Furthermore, there were no statistically significant differences between the banks listed on Palestine Securities Exchange and the banks listed on the Amman Stock Exchange which could be due to reliability of the financial reports.
Keywords: reporting reliability, corporate governance, agency theory, financial reporting.