Amer Qasim

Accounting Legislation, Corporate Governance Codes and Disclosure in Jordan: A Review

Purpose n n n n nThe main aim of this paper is to provide an overview of the most influential economic changes and accounting legislation affecting financial reporting and disclosure practices in Jordan. It also provides an overview of disclosure studies conducted in Jordan covering the year(s) between 1986 and 2014 to investigate whether there is an improvement in disclosure practice in Jordan. This paper also investigates the most influential firm characteristics affecting disclosure practices in Jordan found in prior disclosure studies that were conducted in Jordan between 1986 and 2014. The paper also addresses the disclosure items required in Corporate Governance Codes that exist for listed shareholding companies, banks and insurance companies. Finally, the paper discusses the quality of accounting education in Jordan, as prior studies noted its impact on accounting practice. n n n n nDesign/methodology/approach n n n n nBased on a review of prior disclosure studies conducted in Jordan between 1986 and 2014, this study compared the results of disclosure studies before and after 1998. In 1997, Jordan, as a result of economic changes, issued the Temporary Securities Law and its Directives of Disclosure, which came into effect in 1998. The law is considered as the turning point in the improvement of disclosure practice in Jordan. A trend line of disclosure practice is also used to investigate whether disclosure practice is improved after the issuance of this law. A descriptive analysis is also used to examine the factors affecting disclosure practice in Jordan. n n n n nFindings n n n n nBased on a review of prior disclosure studies, it was concluded that disclosure practices have improved overtime. It was also observed that that firm size as a factor has always affected the level of disclosure in Jordan and is followed by external auditing, while liquidity is found to have the least effect. It was concluded that economic changes, agreement with international organizations like the World Trade Organization (WTO) and the International Organization of Securities Commissions (IOSCO), new regulations and financial market reforms have improved disclosure practice in Jordan. It was also found that there is a need for further studies in disclosure practice that are not sufficiently covered in Jordan. n n n n nOriginality/value n n n n nThe study is based on a review of disclosure studies conducted in Jordan between 1986 and 2014. We investigate whether mandatory, voluntary, corporate social and internet disclosure practice improved over the last three decades in Jordan. This study is the first to provide evidence on the improvement of disclosure practices based on a review of disclosure studies in Jordan. The paper is expected to be a reference for disclosure studies in developing countries, Jordan in particular, as it summarized and criticized the weaknesses on disclosure practice and accounting legislations in Jordan.

Audit committee effectiveness: reflections from the UAE

This study focuses on an essential mechanism of corporate governance, the audit committee. The main objective of this research is to understand the perceptions and attitudes toward audit committees in the UAE context and to extend our understanding of what really determines the effectiveness of audit committees. To reach the objective of this research, a questionnaire is designed to target four groups of respondents: members of audit committees, external auditors, university academics, and governmental regulators. The questionnaires are used to examine the respondents perceptions as for the importance given by them to a number of factors that are believed to increase the effectiveness of audit committees. In this regard, four factors are examined in the questionnaires: independence of audit committees members, number of meetings, financial expertise, and size of the committee. Results showed that the most important character of audit committee effectiveness is the independence of audit committee members.

Enhancing internal communication in organisations using enterprise social networking

Effective internal communication is crucial for organisations success as it affects the ability of strategic managers to engage employees and achieve objectives. At the end of year 2013, over 90% of Fortune 500 companies had partially or fully implemented an enterprise social network within their organisation (Fee, 2013). As the knowledge shared over enterprise social networking has been proven to have a significant positive impact on work performance. It should be in every organisations best interest to utilise this tool to its maximum potential. The research aims to examine the impact of internal communication and enterprise social networking. This was tested through the formation of eight sub-hypothesis and analysis of data from the survey. The study showed that there were positive correlations between each of the key success factors of using enterprise social networking and internal communication. This implies that enterprise social networking is a tool which can be utilised to improve internal communication between employees.