Relationship between ownership structure and earnings quality

ABSTRACT Ownership structure can play an important role in enhancing the quality of earnings and financial statement through acting as efficient internal control. This study aimed to define the relationship between ownership structure and earnings quality. This study used annual reports of industrial companies for five years (2009-2013). The results show that ownership structure (i.e. institutional ownership, family ownership and foreign ownership) were found to play a significant role in ensuring the quality of earnings. The findings of this study supported by agency theory and past studies and expanded the literature on these issues in Jordanian contex

Exploring the Role of Board Characteristics on Enhancing Financial Performance of Jordanian Listed Companies

Corporate governance considered important topic at the local and international levels, especially after many financial crises and corporate failures and such as Enron and World Com This paper aims to explore the role of board characteristics, (i.e. board size, board composition and board leadership structure) on enhancing firms’ financial performance; this study used the non-financial companies’ annual reports for 6 years (2011-2016) to extract the needed information. The non- financial sector consisted form 167 companies, only 139 companies are included in this study due the lack of data during study’s period. The results revealed that there is a positive role for board composition, board leadership structure, board size, on enhancing financial performance, while there is no significant role for board tenure, on financial performance. These mixed results on the relationship between board characteristics and financial performance have opened up possible research area in the future. For instance, extending the sample to comprise more sectors from Amman Stock Exchange is worthwhile to further support or refute the results of this study.</jats:p