The Impact of Corporate Governance upon the Performance Level of Jordanian Public Joint stock Industrial Companies Through Using the Balanced Scorecard (BSC)

Dr Faten Hanna Kerazan,Department Of Accounting, School Of Business, University Of Jordan, Jordan ,Dr Ghaleb Abu Rumman,Nurah Musa Allozi,Dr Hamzah Al Mawali

doi:10.25255/jss.2018.7.1.1.14

Dr Faten Hanna Kerazan, Department Of Accounting, School Of Business, University Of Jordan, Jordan + Show 3 more

Open Access

https://doi.org/10.25255/jss.2018.7.1.1.14

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Abstract

The study aimed to identify the impact of corporate governance upon the performance level of Jordanian public joint stock industrial companies through using the balanced scorecard. The population of the current study consists of financial managers who were working in Jordanian public joint stock industrial companies. The number of those companies is sixty six (66) companies. The researcher of the current study proposed several recommendations. The researcher found the number of results. There is a statistically significant impact for having an effective framework for corporate governance upon the performance level of Jordanian public joint stock companies that are listed on the Amman Stock Exchange through using the balanced scorecard (BSC). There is a statistically significant impact for equity and the main functions of the owners of property rights on the performance level of Jordanian public joint stock companies that are listed on the Amman Stock Exchange through using the balanced scorecard (BSC). These recommendations are represented in the following ones. The researcher recommended having an effective framework for implementing corporate governance due to the major impact it has upon companies’ performance level. The researcher recommended increasing the transparency level of the disclosed financial statements of the company.

Highlights

Since the last decade, much attention has been given recently to the corporate governance mechanisms and their validity due to the consequences they have upon the interests and benefits of stakeholders who are shareholders
That means that there is a statistically significant impact for corporate governance upon the performance level of Jordanian public joint stock companies that are listed on the Amman Stock Exchange through using the balanced scorecard (BSC)
1- There is a statistically significant impact for having an effective framework for corporate governance upon the performance level of Jordanian public joint stock companies that are listed on the Amman Stock Exchange through using the balanced scorecard (BSC)

Summary

Introduction

Much attention has been given recently to the corporate governance mechanisms and their validity due to the consequences they have upon the interests and benefits of stakeholders who are shareholders. This study sought to identify the impact of corporate governance upon improving the performance level of Jordanian public joint stock industrial companies through using the balanced scorecard (BSC). As for the study of Kim et al (2013), they aimed to identify the most significant dimensions of corporate governance that have an impact upon the company’s efficiency These dimensions are represented in: the appropriateness of the audit committee, board of directors and disclosure levels of information. It is believed that such system must be consistent with the provisions of the law and must state clearly the ways it shall follow for assessing the processes of (supervision, organization, implementation and control) 2)-Protecting shareholders’ equity 3)-)- Treating all shareholders 4)-Disclosure and transparency: This standard concerns the company's disclosure level of its significant information.

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Mean Square F

The researcher found the number of results