As ESG reporting becomes more essential in banking, this study explores the association between “Earnings Management (EM)” and ESG scores, using EM as a proxy for “Corporate Governance (CG)” efficacy. It assumes improved audit quality moderates EM’s effect on ESG disclosures. “A balanced panel” of 16 Jordanian banks from 2010 to 2024 is used. We use a modified ESG disclosure index from earlier studies. Hypotheses are tested using “clustered OLS regressions with fixed effects, robustness tests, and dynamic panel GMM”. EM and ESG disclosure scores are positively correlated across environmental, social, and governance dimensions. EM’s impact on ESG disclosures is moderated by audit quality, therefore higher audit quality lessens EM’s influence on sustainability reporting. Regulators, policymakers, and stakeholders can apply the insights to improve audit oversight and CG frameworks for ESG transparency and manipulation prevention in emerging countries. New empirical evidence shows how audit quality affects the link between EM and ESG reporting in poor countries. It helps explain the complex relationship between governance processes and sustainability disclosure in emerging economies like Jordan.

This study investigates how corporate boards of directors influence the quality of external audit in a sample of service firms listed on the Amman Stock Exchange (ASE). We contribute to the literature by providing empirical evidence on the efficacy of the corporate governance mechanisms through corporate boards to influence audit quality in an emerging country setting (i.e., Jordan). According to Chua (1986), this is mainstream “market-based” accounting research. We regress multiple dimensions that capture the quality of financial statements’ audit on a group of board of directors (BoD) characteristics for total observations of 225 firm-year obtained for 45 companies during the period (2014-2018). Specifically, the multidimensional analysis of the response variable, audit quality, includes audit firm’s internationalization, audit fees, auditor tenure, and the number of licensed practitioners at the audit firm. Using multiple linear (Panel Least Squares – PLS) and logistic regression models, we document empirical evidence that audit quality is positively affected by the independence and size of boards but negatively affected by CEOs duality, while no influence of the board’s expertise on any measures of the audit quality. The study provides implications for policymakers and investors regarding the signals that firms can send regarding the quality of financial statements audit when complying with the best practices of corporate governance

Recently, transfer pricing (TP) regulation was introduced in Jordan for the first time in the country’s history (Income and Sales Tax Department [ISTD], 2021). This research evaluates the overall awareness of tax professionals on TP and its applicability in the early stage of its implementation. This is mainstream accounting research that adopts the quantitative research approach to collect data. In this context, a research questionnaire consisting of 29 items was designed and distributed to TP specialists to investigate four key aspects of TP applicability and impact. The results of the study revealed that the majority of respondents have a good level of understanding of the TP regulation and the concept itself. In terms of the applicability of TP, the results revealed that less experience in how to implement the TP regulation has been gained so far due to insufficient training. It was also indicated that digitalized systems have a significant role in filing TP transactions efficiently. According to the tax professionals’ perceptions, TP has been shown to have a possible influence on lowering the overall tax burden and tackling tax evasion, which leads to increased compliance with the tax law. Statistically, it has been revealed that the perceptions of the tax professionals in Jordan towards the awareness, applicability, and implementation of the TP regulation were not significantly differentiated according to their demographical and professional characteristics. Finally, this research concludes with practical implications and some recommendations for future studies

This study examines the challenges and opportunities of implementing International Public Sector Accounting Standards (IPSAS) in Jordan. Using a survey of 106 professionals and regression analysis, the research explores how demographic factors influence awareness, perceived barriers, and expected benefits. Key challenges include legal gaps, limited training, and institutional resistance. Findings suggest that IPSAS adoption enhances financial transparency and investor trust, with variation based on experience and specialization. The study contributes new insights into IPSAS reform in developing economies and offers policy implications for Jordan and similar countries in the Arab region.

This study examined the inter-temporal Dividend-Per-Share (DPS) behavior. The estimated partial adjustment-models included Lintner’s (1956), Darling’s (1957) and Brittain’s (1966) models. The results reported from the (...)

Purpose: The purpose of this paper is to re-examine the motivation to manage earnings in US mergers and acquisitions (M&As) by investigating whether the enactment of Sarbanes-Oxley act (SOX) has affected pre-merger earnings management. Design/methodology/approach: The authors used a sample of over 700 completed M&As of US public firms during 1999-2008. Using quarterly reports, they tracked down earnings management during the four quarters preceding the deal and consequently drew inferences about the implications of SOX on interim reporting practices. Findings: We report evidence that in the post-SOX era, non-cash acquirers begin pre-merger upwards earnings management in an earlier quarter than in the pre-SOX era. Further, our evidence indicates that in the quarters prior to the takeover, targets engage in more aggressive upwards earnings management in the post-SOX era. Originality/value: Unlike what is anticipated regarding earnings management practices after SOX, the study reveals significant evidence of upward earnings management by firms engaging in M&A in post-SOX era.