Jordanian Companies Research Articles

Level of financial disclosures for listed insurance companies using ISO 31000: empirical evidence from Jordan and Palestine

PurposeIn light of the complex risk and transparency regulations, this paper investigates the factors influencing the level of risk management disclosure by insurance firms in Jordan and Palestine. The characteristics examined were ownership structure, which covers public, institutional and management ownership on risk management disclosure (RMD) utilizing ISO 31000, as well as profitability, leverage, liquidity and firm size.Design/methodology/approachTo achieve the aim of this study, a quantitative research methodology was used. Based on the total number of observations, 232 purposeful annual observations for the study sample were collected between 2016 and 2023 for 10 insurance companies listed on the Palestine stock exchange (Palestinian companies) with 80 observations and 19 companies listed on the Amman stock exchange (Jordanian companies) with 152 observations. This study uses panel data regression with fixed effects models. By employing the 2SLS approach, we comprehensively address the main endogeneity concerns and problems in risk management disclosure RMD of insurance firms in Jordan and Palestine.FindingsThe results show that risk management disclosure is significantly influenced by the liquidity and size of an organization. Furthermore, RMD is not significantly affected by profitability, debt, public ownership, institutional ownership or liquidity, whereas business size has a favorable influence.Research limitations/implicationsThe findings of this study may not be generalizable to firms in other countries because of the limitations of insurance firms in Palestine and Jordan. Study replication in future studies should consider the potential for bias and differences in data interpretation when utilizing qualitative methodologies to evaluate RMD.Practical implicationsThe practical implications emphasize how crucial it is for investors, practitioners and stakeholders to choose firms that are large and have little liquidity because this is linked to high levels of risk management transparency. This knowledge can offer investors an important direction for assessing possible risks and transparency in risk management within the insurance sector framework. The study recommends that the governments of Palestine and Jordan enact laws requiring risk management disclosure according to the ISO 31000:2018 standard, especially in the insurance industry.Originality/valueThis study contributes to the literature by illuminating the relationship between firm size, liquidity and risk management disclosure in insurance companies operating in Jordan and Palestine. Therefore, investors should choose large, relatively liquid companies with strong risk management disclosure. This study offers theoretical insights that may be used as a guide for other research, improving the understanding of the variables influencing risk management disclosure in insurance companies and advancing scientific understanding.

The Role of Business Intelligence in Enhancing the Performance of Supply Chains in Jordan

The study problem is represented by the question: What is the role of business intelligence in enhancing the performance of supply chains in industrial companies in Jordan?. A quantitative descriptive design was used in this study to explore the role of business intelligence in improving supply chain performance in Jordan. The study sample was selected using a stratified random sample. The expected number of participants in the study is 300 participants to ensure adequate representation of industrial companies in Jordan. The results showed that there is a positive role for business intelligence in enhancing the performance of supply chains (agility, integration, efficiency, customer responsiveness) in industrial companies in Jordan. The Jordanian companies are recommended to increase their investments in enhancing the performances of supply chains by adaption of business intelligence tools and technologies. In addition, it should focus on the development of human skills through training programs, which will definitely enhance employees' capabilities to make better use of business intelligence technologies and data.

Audit committee financial expertise and internal control weakness: does CEO overconfidence matter?

Purpose The presence of financial experts within audit committees (AC, hereafter) has been a central concern for regulatory bodies. These guidelines underscore the significance of having members with distinct financial acumen and proficiency on AC. The primary objective of this research is to explore the influence of financial expertise within AC on internal control weaknesses (ICWs, hereafter). Furthermore, another aim of this study is to examine the potential combined impact of CEO overconfidence on this correlation. Design/methodology/approach The statistical analysis has been done through the implementation of a multiple regression model by adopting a sample of 82 Jordanian companies, chosen from the years 2014 to 2020. Findings This research reveals that an AC with higher levels of financial expertise is linked to fewer ICWs. Upon further examination, this paper observes that this negative impact is primarily driven by the presence of accounting expertise, as opposed to nonaccounting expertise. It is also evident that CEOs with overconfidence may interfere with the decision-making processes of the audit committees, thus compromising the internal controls even though the committee is financially and accountancy literate. Originality/value This research distinguishes between accounting and nonaccounting financial experience in AC and shows that accounting experience significantly reduces internal control problems. In addition, it introduces CEO overconfidence as a moderating variable, which provides new insights into the field of corporate governance. The implications of these findings are far-reaching in enhancing transparency, trust and accountability by enhancing the quality of internal control.

Factors affecting the quality of accounting disclosures provided in the annual reports for Jordanian firms

AbstractThis study aims to cover the factors that affect Jordanian companies’ annual reports’ accounting disclosures within the country's regulatory framework. This study analyses the qualitative content of accounting disclosures in Jordanian service and manufacturing companies to ascertain whether Jordanian law affects the company's capacity to provide adequate disclosures to stakeholders and whether industry type affects disclosure quality. The content analysis results indicated that Jordanian firms are aware of the laws and regulations governing the preparation of annual reports. Still, corporate governance rules are insufficient. Furthermore, the results revealed that annual report preparers are committed to mandatory and voluntary but provide inadequate CSR disclosures. The findings showed that service firms outperform manufacturing companies in terms of paying attention to narrating events and taking action to reduce their impact. Multiple factors influence the quality of accounting disclosures in Jordan. As for a limitation, content analysis inherently involves some level of subjectivity in interpreting and coding data, which could introduce bias into the analysis. Nevertheless, conducting targeted studies on particular sectors within Jordan could yield valuable information regarding industry‐specific disclosure procedures and obstacles, which could be a future study.

Does the adoption of extensible business reporting language impact the quality of financial reporting? The mediating role of the e-disclosure system

The study aimed to demonstrate the mediating role of the e-disclosure system (E-DS) in the relationship between the extensible business reporting language (XBRL) and the quality of financial reporting (FRQ), for the Jordanian companies listed at the Amman Stock Exchange (ASE). This study uses AMOS to perform structural equation modelling to analyze the data; survey data was gathered from 284 respondents working across various industries and sectors listed at the ASE; 229 usable responses were received. This study finds that XBRL is positively associated with the FRQ. Further, it is found that E-DS positively influences FRQ and plays a mediating role in the connection between XBRL and FRQ. The results of this study are expected to be of high quality regarding the preparation and presentation of financial statements by XBRL. Also, the study’s findings make original contributions to developing countries other than Jordan, which are expected to benefit.

A mathematical model for potash supply chain management with a strategic logistics perspective

Abstract Accepted by: M. Zied Babai This paper introduces a novel Integer Linear Programming model designed to enhance the efficiency and sustainability of the potash supply chain, a crucial element supporting global agriculture. The developed mathematical optimization model focuses on fleet selection (private/outsource) and incorporates the concept of ‘inter-warehouse collaboration’, which addresses key logistics considerations. Integrating mining, processing, storage and transportation, the model encompasses decision variables like extracted carnallite amount, production, storage levels and shipped potash amount. Illustrated through a case study on the Arab Potash Company in Jordan, the results showcase the model’s proficiency in meeting local and international market demands. The model ensures resilient and sustainable supply chain performance by emphasizing logistics optimization, particularly in fleet selection. The study attains the highest ‘warehouse-to-warehouse’ support for Standard and Granular potash types in the international demand scenario, contributing to efficient production planning and fleet management. In conclusion, the presented mathematical model is a valuable tool for potash industry stakeholders, offering insights for strategic decision-makers involved in production planning and fleet management.

Literature Review on Human Resources Agility and Organizational Resilience in Industrial Companies in Jordan

Literature Review on Human Resources Agility and Organizational Resilience in Industrial Companies in Jordan

The Impact of Supply Chain Agility on Operational Performance in Dairy Companies in Jordan

The Impact of Supply Chain Agility on Operational Performance in Dairy Companies in Jordan

The Role of Digital Supply Chain on Inventory Management Effectiveness within Engineering Companies in Jordan

The Role of Digital Supply Chain on Inventory Management Effectiveness within Engineering Companies in Jordan

Corporate governance and quality of profits in industrial enterprises

Methods. This study is one of the field studies in which a descriptive-analytical approach is applied to study the impact of corporate governance laws on the quality of earnings. The study was conducted in industrial public joint-stock companies listed on the Oman Stock Exchange. As part of the study, the opinions of accountants and internal auditors of these organizations were also evaluated from the point of view of directors. The SPSS statistical program was used to analyze the obtained data. Results. In the modern economy, corporate governance is one of the most important factors that determine not only the level of economic development of the country, but also the social and investment climate. Therefore, adherence to the principles of corporate governance, compliance with legal requirements and the effectiveness of the existing corporate governance system has become one of the important conditions for the attractiveness of business investment. Today, many researchers show an interest in the problems of corporate governance. The goal of this study was to determine the role of corporate governance in achieving profit in industrial enterprises. To meet the study's goals, a set of 78 Jordanian industrial businesses were chosen, with a total of 120 managers, assistant directors, and department heads as the study population. With 60 data, a random sample of 50% of the study population was taken, and the total of 204 data was valid to be processed and analyzed after that using the statistical program (SPSSv.20) in the statistical analysis of these data. Various methods were used for statistical analysis, including: arithmetic averages, standard deviations, multiple regression analysis, stepwise regression analysis, inflation coefficient of variance, alpha-Kornibach coefficient. Novelty. The study reached the following perceptions, which are the most important perceptions. The managers’ visions about the dimensions of governance systems and their visions about the dimensions of achieving profits in independent Jordanian companies came to a high degree, and there is an effect of governance in achieving profits, as it shows a degree of 62.3% of variation in achieving benefits. Practical value. The study recommends adopting the concept of high-performance systems and working in all its dimensions in all Jordanian communications and various activities, to achieve profits, by adopting rules of governance that may contribute to a broader understanding of governance in Jordan. This will contribute to a deeper understanding of management practices in Jordan and the selection of effective applications and skills to ensure profitability.

The role of green marketing strategies for a competitive edge: A case study about analysis of leading green companies in Jordan

AbstractThis study aims to explore the relationship among green marketing practices, leadership commitment, and environmental performance specifically within Jordan's pharmaceutical industry. It explores the impact of green marketing strategies on the competitive advantage of leading green companies in Jordan. The limitations of this study focused on the Jordanian market, and its findings are not generalizable to other countries due to market contrasts. A quantitative approach was employed to address the research question of “to what extent” these strategies contribute. The theory of the resource‐based view (RBV) was applied to this topic because it suggests that a firm's competitive advantage and performance are primarily determined by its unique resources and capabilities. The research instrument consists of 9 factors clarifying the role of green marketing strategies in improving the competitive edge of leading green companies in Jordan. The population of this study includes all implementing managers of Jordanian leading green companies, while the sample of this study consists of 32 implementing managers. After distributing the scale to the participants of this study, their responses were collected and discussed carefully. Then, their responses were analyzed by using SPSS statistical tests. The results show a significant positive correlation between green marketing strategies and competitive edge. This indicates that leading Jordanian green companies actively gain “green marketing” initiatives to gain and maintain a competitive advantage in the market. The study concludes that embracing green marketing is crucial for Jordanian green companies to compete effectively and achieve sustained success. Novelty or originality in this research looks for specific statements that indicate to a novel theoretical approach, a new methodology, or an innovative application of existing theories, or a unique data. This adds new ideas to the knowledge of this study.

The Impact of Comprehensive Innovation on Sustainable Performance in Small and Medium-Sized Jordanian Companies

The Impact of Comprehensive Innovation on Sustainable Performance in Small and Medium-Sized Jordanian Companies

The impact of internal control of non-financial reporting-related weaknesses on audit fees: does external audit size matter?

This study intends to examine the impact of internal control of non-financial reporting-related weakness on the audit fees of corporations. To pursue the research objectives, two research questions are formalized: (i) How does internal control over non-financial reporting-related weakness (ICWN-FR) affect audit fees (ADF)?; (ii) What is the effect of external audit size on the link between ICWN-FR and ADF ?. Multiple regression models with 82 listed Jordanian companies from 2014 to 2020 used as the study sample reveal the following findings. Our findings underscore the importance of considering the characteristics of the audit firm when analyzing the relationship between ICWN-FR and audit fees. Companies audited by Big 4 firms may face greater scrutiny and potentially higher fees for ICWN-FR compared to those audited by non-Big 4 firms. While prior studies have explored various factors influencing audit fees and the impact of internal controls on audit costs, this research uniquely delves into the differential effects observed when companies are audited by different categories of audit firms. The study accentuates the significance of impeccable internal controls within non-financial reporting procedures and their far-reaching consequences on audit fees, thereby highlighting the imperative for corporations to give precedence to augmenting their internal control mechanisms.

The impact of information technology capability on audit report lag and audit fees: empirical evidence from the COVID-19 pandemic

Purpose This study aims to examine the impact of client information technology (IT) capabilities on audit report lag and audit fees in Jordanian companies listed on the Amman Stock Exchange (ASE) during the COVID-19 pandemic. Design/methodology/approach This study analysed financial and non-financial data from 72 Jordanian public shareholding companies listed on the ASE between 2014 and 2021. Using fixed- and random-effects models, the authors examined the impact of client IT capabilities on audit report lag and audit fees. The authors also examined how the COVID-19 pandemic might affect audit report lag and audit fees. The analysis incorporated various control variables specific to the Jordanian context to ensure accuracy. Findings Empirical evidence indicates that client IT capabilities do not significantly impact audit report lag and audit fees. In contrast, the COVID-19 pandemic has positively impacted audit report lag and audit fees, leading to an increase in audit report lag of 60 to 67 days and an increase in audit fees of approximately 15%. It is worth noting that these effects are more pronounced when influenced by factors including return on assets, company losses and audits conducted by the Big 4 firms. Research limitations/implications The scope of this study, which focuses on Jordanian firms, may limit the generalisability of the findings to other contexts. Reliance on aggregate IT infrastructure and software assets as proxies for IT capabilities might not fully capture their multifaceted nature, overlooking the qualitative aspects crucial for audit outcomes. Furthermore, excluding external factors such as governmental regulations underscores the need for future research to explore the nuanced interplay between IT capabilities, internal control systems and regulatory environments, enriching our understanding of audit practices. Originality/value This study contributes to auditing literature by examining the interplay between IT capabilities and audit processes during the COVID-19 pandemic in Jordan. This study highlights the unexpected finding that IT capabilities have minimal impact on audit report lags and fees, opening new avenues for research on how pandemics and similar crises can reshape auditing practices and influence regulatory policies in an evolving economic environment.

Literature Review on Green Supply Chain Management and Competitive Advantage in Manufacturing Companies in Jordan

Literature Review on Green Supply Chain Management and Competitive Advantage in Manufacturing Companies in Jordan

Using ARIMA Model to Forecast Electricity Load in Jordan

Objectives: This study aims to forecast the daily peak electricity load in Jordan using a dataset of hourly peak load data for the period from January 1, 2010, to December 31, 2022, compiled by the National Electric Power Company (NEPCO). Methods: This study employs the Seasonal Autoregressive Integrated Moving Average (SARIMA) model to make forecasts. The data exhibits an upward trend, seasonality, and non-constant variance. To address these features, the SARIMA model is used to account for the trend and seasonality, while a Box-Cox transformation is applied to manage the non-constant variance. Results: Following the standard Box-Jenkins methodology (identification, estimation, diagnostic checking, and forecasting) and utilizing the “(auto.arima)” function in the RStudio software package, the resulting SARIMA model is ARIMA(1,0,1)(2,1,2)[7]. This model is used to forecast 7 future values of the electricity load. The Mean Absolute Percentage Error (MAPE) and the Root Mean Square Error (RMSE) values, as measures of forecast accuracy, support the precision of our forecasts. Conclusion: Based on empirical results, electricity companies in Jordan are encouraged to use time series models for forecasting electricity loads instead of relying on simple spreadsheet models.

Enhancing the internal auditors' effectiveness in jordanian companies: The impact of cloud-based accounting usage and the moderating role of digital proficiency

The main aim of this research was to explore how the digital proficiency of internal auditors impact the relationship between adopting cloud-based accounting and the digital efficiency of internal auditors in Jordanian-listed industrial firms. 98 questionnaires, gathered from internal audit managers in these companies, underwent analysis using Statistical Package for Social Sciences (SPSS) using descriptive-analytical methods. Results indicated that adopting cloud-based accounting significantly influences the effectiveness of internal auditors in these Jordanian-listed industrial companies. Moreover, the study found that the digital proficiency of internal auditors positively affects how much cloud-based accounting adoption impacts their effectiveness. These findings hold importance for regulators and decision-makers, offering insights to shape potential new regulations aimed at enhancing the use of cloud-based accounting in internal audit departments within Jordan's industrial sector. This could ultimately help internal auditors in overseeing public funds. Given the extensive impact of cloud technology on modern business, it's crucial to understand how these innovations can improve the precision and benefits of internal audit functions. Exploring the factors that drive the implementation of cloud technologies in internal audit is also essential. Notably, this study represents the initial attempt to examine existing research on the role of cloud-based accounting in enhancing internal audit effectiveness concerning the digital proficiency of auditors within Jordan's industrial sector.

Entrepreneurial leadership: key to sustainable innovation and competitiveness in Islamic insurance companies in Jordan

Purpose This study delves into the significant impact of entrepreneurial leadership (EL), organizational innovation (OI) and competitive advantage (CA) on the sustainability of organizations in the Jordanian Islamic insurance sector. This study aims to unravel the intricate dynamics among these pivotal factors, highlighting their collective role in the sustained success and resilience of Islamic insurance companies in Jordan. By examining the synergistic interplay between EL, OI and CA, the research seeks to offer invaluable insights into cultivating a sustainable future for these institutions. Design/methodology/approach This study adopts a positivist, quantitative approach to investigate the relationships between EL, OI, CA and organizational sustainability (OS). Data collection was achieved through questionnaires in a cross-sectional analysis of these variables. Convenience sampling yielded 389 valid responses, an 81% response rate, ensuring a thorough understanding of the dynamics within this framework. Findings The findings from the study on Jordanian Islamic insurance companies highlight the critical role of EL in influencing organizational dynamics. The research establishes a positive relationship between EL and both OI and OS. Furthermore, it identifies a significant positive correlation between EL and CA, underscoring the importance of leadership in securing a competitive edge. This study also emphasizes the vital role of OI in bolstering OS and confirms that a strong CA enhances OS, reinforcing the interconnectivity of these essential organizational components. Practical implications This study provides important insights for professionals in the insurance sector, especially those within the Jordanian Islamic insurance industry. It emphasizes the crucial role of EL in fostering innovation, competitiveness and sustainability. By understanding the significance of EL, companies can adopt more dynamic and effective strategies in leadership, organizational development and strategic planning, thereby enhancing their overall performance and resilience. Originality/value By conceptualizing EL and OS as second-order constructs, this study seeks to provide a detailed understanding of how EL catalyzes OI, CA and sustainability in an organizational context. This approach contributes significantly to the broader discussion on EL and OS, particularly within the Arab region and specifically in Jordan, offering nuanced insights into their roles and interrelations in shaping organizational dynamics.

Leadership in the digital era: Exploring the nexus between leadership styles and job satisfaction. The mediating role of perceived organizational politics in Jordanian insurance companies

The study intends to determine how leadership techniques adjusted to the trends impact employee job satisfaction, considering the mediating influence of perceived organizational politics in light of the expanding influence of digital technology and virtual work settings. The study included a solid sample of 300 workers from different parts of Jordan. The employees filled out the questionnaire anonymously. 5-point rating Likert scales were used to capture a range of viewpoints. Using the Partial Least Squares software, this study applies Structural Equation Modelling analysis to examine the relationships between job satisfaction, perceived organizational politics, and leadership styles in Jordanian insurance companies. The study focuses on all employees of insurance companies in Jordan, including people working at various administrative levels. The most common length of job tenure was between one and five years (38.67%). Initial results show a strong beneficial relationship between transformational leadership philosophies and contentment at work (β = 0. 378, t = 6.266, LL = 0.483, UL = 0.718, p < 0.001). Similarly, transformational leadership had the highest standardized effect on perceived organizational politics with a coefficient of 0.443. Furthermore, the complex processes by which leadership philosophies tangentially affect job satisfaction levels are revealed by the role of mediation of perceived organizational politics.

The Relationship between Perceptions of High-Performance Work Systems and Corporate Social Responsibility (CSR) Considering the Moderating Effect of a Positive Diversity Climate

Companies have shown interest in advanced human resource management as a means to secure distinctive competitive advantages for organizational survival and growth through sustainable management systems. Hence, in the current context, where sustainability in business is a growing concern, the objective of this study was to investigate the relationship between high-performance work systems and a company’s social performance, taking into account the organizational climate as a situational variable. Specifically, this study aimed to analyze the impact of perceptions of a high-performance work system on the perception of a company’s social responsibility (CSR) among employees of Jordanian companies with an organizational size of 300 or more. This study used 175 valid questionnaires, and SPSS and AMOS 24 were used to test the hypotheses. The results showed that there was a positive relationship between the perception of a high-performance work system and the perception of a company’s CSR. Furthermore, this study found that a positive diversity climate could enhance the positive relationship between the two. These findings suggest that high-performance work systems can contribute to the development of sustainable human resource management systems and that a positive diversity climate is essential in shaping these systems. Based on these results, it is recommended that companies implement HPWSs and encourage workforce diversity to maximize the value of CSR activities and ensure their sustainability.