The current study links the information contents of the three main financial statements in a balanced panel data model to empirically examine the effect of cash flows per share and capital structure on shareholder value. The results of the study are based on a sample of 270 firm-year observations from the Jordanian commercial banks and insurance companies that listed on Amman Stock Exchange (ASE) from 2011 to 2019. Based on the Fixed Effect Model (FEM) with Driscoll-Kraay standard errors, the empirical results show that cash flows from operating activities per share had a positive and significant relationship with shareholder value, whereas both the cash flows from investing and financing activities per share had negative but insignificant relationship with shareholders’ value. Results also show that capital structure had a negative but insignificant relationship with shareholder value. Finally, the results indicate that dividend per share had a positive and significant relationship with shareholder value. Accordingly, decision-makers should direct cash to efficient investment projects in order for cash outflows from investing activities to create value to shareholders and to generate positive cash flows from financing activities. Similarly, an appropriate capital structure should be selected to create value for shareholders.

The current study examines the extent to which audit committees comply with the requirements of corporate governance in Jordan and describes the current status of internal audit function. In addition, the study examines empirically the relationship between the internal audit quality and the compliance of audit committees with the governance requirements. The results from 49 respondents indicate that audit committees comply with the requirement of corporate governance and no significant difference is found in such compliance due to sector. In addition, the internal audit quality attributes are met among Jordanian companies to a considerable extent. Further, the independence and objectivity dimension of internal audit quality has a positive and significant relationship with the compliance of audit committees with governance requirements. Internal audit competence and due professional care have no significant relationship with audit committees compliance. One important implication of the current study is the development of a scale to measure the compliance level of audit committees with the governance requirements that can be used by both academics and decision-makers in firms.

The study examines the perceptions of accounting information users toward the importance of a web-based disclosure for 32 items and the potential advantages for both the users and companies. The study also investigates the perceptions of users regarding the websites presentation and the obstacles of web-based disclosure. In addition, the study examines empirically the relationship between the importance of web-based disclosure and the potential advantages for both users and companies. Based on 107 online users’ responses, results show that financial information is the most important information that should be disclosed on the websites of companies according to users. Results also show that the mean values of the advantages for both users and companies are, high, close and significant. Users’ perceptions indicate that competition, cost and audit issues are the main obstacles that may hinder companies to use websites for disclosure. In addition, findings show a positive and significant relationship between the “financial” factor and the users’ potential advantages. In respect to the companies’ potential advantages, results show that both “human resources and suppliers” factor and “the governance, quality and strategy” factor have positive and significant relationship with the companies’ potential advantages. Accordingly, decision-makers should effectively use the seven factors that extracted from principle component analysis as a web-based disclosure model to create advantages for both users and companies.

This study examines the current status of accounting standards among Jordanian firms. In particular, it examines the adoption level of IAS/IFRS. In addition, it examines the implementation process in terms of difficulties and challenges. Further, the study tests empirically the effect of international institutional pressures, local legal enforcement bodies and accounting education level on accounting standards adoption level. The results of the study are based on the descriptive and multiple regression analysis technique. Based on 62 usable responses, the study reveals that the adoption level of IAS/IFRS among Jordanian firms is moderate. For example, IFRS 7 (Financial Instruments: Disclosure) is the most adopted standard. This is followed by IAS 32 (Financial Instruments: Presentation) and IFRS 15 (Revenue from Contracts with Customers) respectively, while IFRS 2 (Share-based Payment) is the least adopted standard. In general, the study reveals that the implementation process of some standards is easy such as IFRS 7 (Financial Instruments: Disclosure), while others such as IAS 36 (Impairment of Assets) and IFRS 13 (Fair Value Measurement) need additional efforts to properly implement. In addition, several challenges were detected, which could prevent the proper implementation of some accounting standards such as the shortage in the governmental and IT supports. Further, the study shows that international institutional pressure and local legal enforcement bodies have a positive and significant relationship with the adoption level of accounting standards, while the effect of accounting education level is insignificant. JACPA should coordinate and collaborate with IASB and the government to offer all the necessary financial, technical and legal support for Jordanian firms to fully adopt and apply accounting standards. Several recommendations were offered for future research to enrich this vital topic in Jordan and other developing countries.

There is almost a worldwide consensus that the usage of fair value accounting is not an easy task due to a number of limitations that affect its reliability. Prior studies in fair value accounting have unanimously agreed on the existence of clear defects in measuring fair value, especially under level 3 of fair value hierarchy where the active market does not easily exist for the asset or liability. Based on previous literature in the field, the current study discusses the reasons for the ongoing debate on the reliability of fair value accounting and also suggests some relevant procedures to enhance fair value accounting system. In particular, the paper offers some creative suggestions that standard-setters (e.g. FASB and IASB), regulators, practitioners and academics should globally adopt to ensure a brighter future for fair value accounting. In addition, the paper provides a set of the necessary future research avenues in fair value and the related accounting standards.

The study examines the effect of board size, frequency of board meetings and frequency of audit committee meetings on the market value of 11 Jordanian commercial banks as measured by Tobin’s Q. Random effect panel data regression is employed to test the study hypotheses. Results reveal that board size has a significant and negative effect on bank market value. Results also show that frequency of board meetings has no effect on bank value, while the frequency of audit committee meetings has a significant and positive effect on bank value. The results suggest that the argument of agency theory and resource independence theory towards the role of board and its committees in supporting firm value should be always combined with the appropriate size. Accordingly, one important implication of the study is that the selection of an appropriate number of board members and the prior effective preparation for their meetings are critical factors to enhance the value of banks in Jordan.

The current study examines the effect of ownership structure (i.e., government ownership, family ownership, and foreign ownership) on chief executive officer (CEO) compensation in an emerging market, by considering Jordan as a case study. By using a sample of 136 non-financial firms listed on the Amman Stock Exchange over the period of 2015-2019, we find that family ownership has a positive and significant impact on CEO compensation. The finding regarding foreign ownership is contrary to expectations, with a higher foreign ownership reflecting a higher CEO compensation. Overall, these results imply that the ownership structure of Jordanian companies exerts a significant influence on the CEO pay setting process. However, government ownership has no relationship with CEO compensation. This indicates that government ownership is ineffective in determining CEO compensation. We further find that firm size is positively related to CEO compensation, indicating that larger companies have more ability to generate high internal funding, and can afford to pay higher compensation to quality managerial talent. In contrast, the effects of firm age and liquidity are not at significant levels. Contribution/ Originality:This study contributes to the existing literature by recognizing the interests of regulators, readers, practitioners, and academics to gain more insight into and knowledge of corporate governance practices in an emerging market, such as Jordan. INTRODUCTIONRecently, there has been global debate on CEOs in the corporate governance literature, including how ownership structure might affect CEO compensation (Baixauli-Soler & Sanchez-Marin, 2015; Cheung, Stouraitis, &