Public Shareholding Companies Research Articles

Civil Responsibility for the Work of the Auditor in the Public Shareholding Company

The study seeks to uncover the legal liability associated with the auditor’s role in public shareholding companies, with a focus on shareholder rights. Shareholders typically exhibit limited interest in company affairs beyond matters directly impacting their share of profits. The research adopts various approaches, including the inductive approach, involving the extrapolation of provisions from Jordanian corporate law and French law related to the research subject. Additionally, the analytical approach entails a thorough examination of legal texts about the research topic, while the comparative approach involves contrasting the legal frameworks of Jordanian and French laws. The findings revealed a lack of experience among shareholders in monitoring the Board of Directors activities and auditing the accounts presented for approval during General Assembly meetings. Consequently, the legislation mandates the appointment of a qualified auditor by the general assembly to oversee the company’s financial management. This includes ensuring compliance with legal provisions, alignment with the company’s objectives, and adherence to its articles of association.

The Legal Status of the Founders in the Public Shareholding Company under Incorporation in Jordan

Objective: the objective of this study first is Public shareholding companies are considered the most important engine of economic activity in the country, as they were established to undertake major economic projects, whether commercial or industrial. Therefore, the establishment of a joint-stock company requires carrying out legal procedures by people called the founders.
 
 Method: In this study, we follow the comparative analytical descriptive approach, as well as looking at some jurisprudential opinions. The study was divided into the concept of the founder in the public shareholding companies and the conditions that must be met in the founder, the first topic, and the actions issued by the founders in the company under incorporation in the second topic.
 
 Result: This study aimed to explain the role of the founders during the establishment procedures period, and the extent to which it is permissible to exploit the subject of the activity for which the company was established for during the establishment stage, and the extent of the disposition of the actions carried out by it. During the incorporation period, to the founding person or to the company.
 
 Conclusion: After this detailed presentation of the legal position of the founder in the company under incorporation in the joint-stock company, it can be said that the credit for the emergence of this type of company belongs to the founders, as he is the owner of the idea in establishing this company, and his willingness to carry out all the actions and legal procedures necessary to establish this company.

The Impact of Tax Legislation on Public Shareholding Companies Tax Disclosure: A Comparative Study Between the Jordanian Tax System and the U.S. Tax System (State of Illinois)

Purpose: the purpose of this study is to examine the impact of tax legislation frequency and awareness on tax disclosures in publicly held companies in Jordan and the USA. Theoretical Framework: the study utilizes a theoretical framework that considers the transparency, tax evasion, and availability of financial resources to the companies. The research employs an analysis of peer-reviewed journals and reports to explore the interaction between these variables. Findings: the findings reveal that frequent changes in tax legislation reduce awareness levels but have no significant effect on transparency. Companies tend to prefer minimal disclosures rather than making extensive reports. Controlled policy changes enable companies to adjust their practices and influence the availability of resources. Increased awareness of tax policies enhances corporate understanding, but its impact on transparency is limited unless there is a mandatory requirement. Higher levels of awareness also contribute to reduced corporate evasion and improved availability of financial resources. Implications of the research: the study has implications for tax legislators, providing insights into developing more effective tax legislation that enhances disclosures. Originality/value: It highlights the importance of considering other moderating factors that influence policy effectiveness across different countries.

كلمة العدد (الإنجليزي)

Undoubtedly, the International Journal of Law's achievements affected the development of legal knowledge among all those interested in law. Accordingly, the journal aims to select authentic legal research characterized by strong structure, in-depth ideas, and smooth expression of thought to reach a wide audience. This new issue of the International Journal of Law includes a number of articles written by researchers who rely on the Journal as an open scientific platform through which they can reach the greatest number of readers. The issue includes the following research papers: 1. “The Employee’s Post-employment Non-compete Covenant: Analytical and Comparative Study from the Perspective of Qatari Law” by Dr. Nader Mohamed Ibrahim. 2. “Justice in a Time of Health Crisis: A Comparative Study” by Dr. Abderraouf Elloumi. 3. “The Legal Provisions of the Garnishee in an Attachment for a Debtor to a Third Party: A Comparative Analytical Study between French, Kuwaiti and Qatari Law” by Dr. Yousef Alyaqout. 4. “Financial Restructuring of Distressed Businesses Under the New Kuwaiti Bankruptcy Law No. 71 of 2020: A Comparative and Critical Study” by Dr. Fahad Neamah Alshammari and Dr. Abdulwahab Abdullatif Sadeq. 5. “The Role of Governance and Anti-corruption Structures in Public Shareholding Companies Privately Owned in accordance with Qatari Law” by Dr. Jamel Baccar. 6. “Procedural Effects of Mediation in Qatari Law: A Comparative Analytical Study in the Qatari Mediation Law No. 20 of 2021” by Dr. Mohammed Ammar Torkmanie Ghazal and Dr. Imad Qaminassi. 7. “Crimes of Electronic Defamation, Libel, and Slander under Jordanian Cybercrimes Law” by Dr. Muath Al-Zoubi (in English). 8. “Technical and Legal Framework of Initial Coin Offerings” by Dr. Haïssam Fadlallah (in English). 9. “ Le cadre juridique de la société par actions simplifiée dans la législation marocaine ” by Dr. Rachid Attahir (in French). The Editorial Committee thanks all contributors to this issue, hoping that the readers find it as the best source of legal knowledge, and that researchers are further incentivized to write legal research.

The Role of Governance and Anti-corruption Structures in Public Shareholding Companies Privately Owned in accordance with Qatari Law

تحتل دولة قطر ترتيبًا عالميًا مُتقدِّمًا في مكافحة ظاهرة الفساد المتفشية بشكلٍ ملحوظٍ اليوم في عديد دول العالم. تهدف هذه الدراسة إلى بيان مدى صرامة الرقابة التي تجريها هياكل الحوكمة ومكافحة الفساد المختلفة، لشركات المساهمة العامة المملوكة حصرًا للخواص في التشريع القطري. وتنقسم هذه الهياكل إلى هياكلَ داخليةٍ تتمثل في مجلس إدارة الشركة والجمعية العامة للمساهمين، وهياكلَ خارجيةٍ خاصةٍ يمثلها مُراقِب الحساباتِ، وهياكلَ عامَّةٍ تمثلها أساسًا وزارة التجارة والصناعة وهيئة قطر للأسواق المالية. واعتمدت الدراسة المنهج الاستقرائي للنصوص القانونية والمنهج المقارن، من خلال مقابلة النصوص القانونية بقرارات الحوكمة، متبعين في ذلك أسلوبًا تحليليًا نقديًا. وتوصلت الدراسة إلى أن الرقابة المنطبقة حاليًا صارمةٌ لحدٍ بعيدٍ؛ بما يضيق المجال أمام الممارسات الفاسدة داخل هذه الشركات؛ لكن كشفت الدراسة أيضًا عن وجودِ نقائصَ تم الوقوف عليها لخطورتها على الشركة خصوصًا وعلى السوق عمومًا. وانتهت الدراسة إلى تقديم توصياتٍ متعددةٍ؛ لتدارك النقائص وتحسين الرقابة على الشركات المذكورة من أجل مكافحةٍ أكثرَ صرامة للفساد. والفائدة المرجوَّة من ذلك كبيرة، وهي تحفيز الاستثمار بقطر بشكلٍ أنجعَ وحماية الشركات بطريقةٍ أفضلَ، والارتقاء بدولة قطر إلى ترتيبٍ عالميٍ أعلى في مؤشر مدركات الفساد.

The Impact of Internal Control and Electronic Disclosure on the Electronic Auditing Risk in the Jordanian Industrial Public Shareholding Companies

Purpose: The aim of this study is to examine the possibility of the risk associated with electronic auditing by identifying the relationships between the various internal control aspects (control activities, control environment, monitoring, information and communications, and electronic disclosure) Theoretical framework: The Jordanian Industrial Public Shareholding Companies as other sectors, apply standards for internal audit that set by experts and electronic auditing using a new electronic technique that may affected by IC and ED. Design/methodology/approach: The descriptive statistics used to describe the electric questionnaire responses of the study sample using SPSS statistical analysis. The study population was made up of the finance department personnel and financial managers of the 45 public shareholding businesses, and 225 companies that were listed on the Amman Stock Exchange up until the end of December 2021. Findings: The results show that in Jordanian public shareholding businesses, risk assessment with its aspects (internal control and electronic disclosure) had a statistically significant influence on reducing audit risk in their dimensions (control risk, inherent risk, and discovery risk). In addition, the study determined that electronic disclosure had a statistically significant impact on lowering audit risk in Jordanian public shareholding corporations. Research, Practical & Social implications: The implications for Practice of the adoption of electronic systems will raise the risks to the confidentiality and reliability of accounting data. This is the purpose of electronic auditing, since it decreases the possibility of misrepresentation and manipulation of accounting data provided electronically. Further study can involve many countries in the region so as the conducted results can be widespread and globalized. Originality/value: The study among the first highlighted the impact of internal control and electronic disclosure for the risk associated with the electronic auditing in the Jordanian Industrial Public Shareholding Companies.

Infusion of ICT into Nigeria's Corporate Democracy: A Proposal for a New Reform Initiative

AbstractThis article examines the infusion of information communication technology (ICT) into Nigeria's new company legislation to promote corporate democracy. While the initiative is laudable, especially in the age of the COVID-19 pandemic, the article argues that the reform is of limited value, as only private companies are empowered to deploy ICT in the conduct of general meetings. By excluding public companies, the article argues, inter alia, that the reform overlooks the role that ICT could play in addressing the assumed passivity of latent, large groups, which typify the shareholders of public companies. In making a case for inclusive reform, the article examines the reforms already undertaken by some countries in the common law jurisdictions, whose templates on the subject may inform the changes Nigeria needs to effect in her law.

Keabsahan Akta Autentik Dari Risalah e-RUPS PT Terbuka Melalui Aplikasi eASY.KSEI

The The implementation of e-GMS in public company (PT) can be carried out with an application called eASY.KSEI which according to the provisions requires that it be made in the form of an authentic deed. Hence this study discusses, first, whether the authentic deed originating from the minutes of the e-GMS of Public Company through the eASY.KSEI Application complies with the provisions of Law No. 40 of 2007 on Limited Liability Companies? second, how is the validity of the authentic deed made from the e-GMS of public company minutes through the eASY.KSEI Application. The type of research used is normative law with statutory and conceptual approaches. The results of this study conclude, first, the form of minutes of meetings made in the eASY.KSEI application is not in accordance with the Limited Liability Company Law, but the minutes have been specifically regulated in accordance with the provisions of the Republic of Indonesia Financial Services Authority Regulation No. 16/POJK.04/2020 on Implementation of Electronic General Meeting of Shareholders of Public Companies; and secondly, the validity of an authentic deed will be fulfilled if the formal and material requirements are fulfilled as stipulated in the provisions of the Notary Office Law.

From the Chair

From the Chair

The Role of Audit Committees in Improving the Performance of Joint Stock Companies Listed on The Palestine Stock Exchange: دور لجان التدقيق في تحسين أداء الشركات المساهمة العامة المدرجة في بورصة فلسطين

The study aimed at diagnosing and understanding the role of audit committees in improving the performance of public shareholding companies listed on the Palestine Stock Exchange. I assumed that there is no statistically significant relationship at the significance level (a < 0.05) between the role of audit committees in the field of "internal control", External Audit, Financial Reports and Improving the Performance of Public Shareholding Companies in Palestine). The study methodology and its descriptive and analytical design were chosen, and a questionnaire was designed that enjoys honesty and reliability to collect data from the participants in the study for statistical analysis. The study reached the results: the most important of which are: The Audit Committee discusses with the external auditor about any issues that may arise such as lawsuits, contingent liabilities, and accounting estimates. The audit committee meets with the external auditor at least once a year, and the study concluded several recommendations, the most important of which are: The necessity of directing the attention of the Palestinian Monetary Authority towards a clear definition of the conditions of independence that must be met by a member of the audit committee, as stipulated in the recommendations of the international committees that supported the formation of audit committees.

Corporate Social Responsibility and Public Shareholding Companies at Palestine Securities Exchange

This paper aims to measure the extent to which public companies at the Palestine Stock Exchange have adopted social responsibility according to international standards and concepts represented by the four dimensions of social responsibility (economic, legal, ethical, and human dimensions). Unlike previous Palestinian studies, this paper provides a theoretical and practical basis for the actual application of corporate social responsibility, as well as the relationship of variables related to the company’s work sector, age, classification in the market, and the adoption of social responsibility. To reach the aim, the applied study applied the descriptive analytical method by studying the content, percentages, mean, standard deviation, and relative weight, in addition to a t-test for one sample. The questionnaire was distributed to the study population as one for each company, as the study population consisted of 49 companies listed on the Palestine Stock Exchange. The study retrieved 38 questionnaires with a recovery rate of 77.6%. The findings showed a high degree of approval regarding «adopting social responsibility through the legal dimension», with a relative weight of 86.20%. There is a medium degree of approval regarding «adopting social responsibility through the ethical dimension» with relative weight. 82.58%, in addition to having a medium degree of approval regarding «adopting social responsibility through the economic dimension», with a relative weight of 78.53%. The results showed a lack of general approval regarding «adopting social responsibility through the human dimension», with a relative weight of 63.79%. The obtained results revealed that the public shareholding companies listed on the Palestine Securities Exchange adopt social responsibility programs through their four dimensions combined to a medium degree. There are no significant differences between the companies listed on the Palestine Stock Exchange and the leading and distinguished companies in their social responsibility practice, on the one hand, and between companies in terms of adopting social responsibility through its four dimensions, according to (work sector, company age), except for the company’s classification variable in the market, on the other hand. The paper recommended that companies work on making an integrative relationship with the local community and achieve their own goals through such a surrounding environment. Therefore, they must take serious steps to increase the level of development of their relationship with the local community and improve the special programs and policies for social responsibility in solving problems related to social, economic, and environmental aspects. The state must also have a positive attitude and practices toward companies that adopt social responsibility, through legislation or procedures such as exempting them from taxes or other facilities in return for their social contribution. The study also recommended the need for greater attention to social responsibility through preparing plans and discussing them in the meetings of the Board of Directors so that they are taken into account in the budget.

The Role of Senior Management in Public Shareholding Companies in the Telecommunications Sector in the United Arab Emirates in Supporting the Internal Audit Unit

Internal audit has become one of the most important means of organizations controlling tasks and achieving objectives. As the internal audit is an important activity for the organization to achieve its goals, adhere to regulations and legislation, and reduce cases of fraud, financial and administrative corruption. Therefore, the research aims mainly to identify the role of senior management in public shareholding companies in the telecommunications sector in the United Arab Emirates in supporting the internal audit unit. The study population consisted of 3 public shareholding companies in the UAE. To achieve the objectives of the research, the research relied on the analytical research method and the comparative research method, and the analysis of secondary data obtained from performance governance reports, and the most important findings of the research: There is administrative support for internal audit units by the boards of directors of public shareholding companies in the telecommunications sector in the United Arab Emirates And administrative support includes the five forms: planning, organizing, directing, leadership, motivating and controlling, and there is appropriate independence for the internal audit units, and the boards of directors take and implement the observations of the internal audit units.

The Moderating Effect for Forensic Accounting on the Relationship between corporate Governance and Quality of Accounting Information in The Jordanian Public Shareholding Companies

This study aimed to find out the moderating effect for forensic accounting on the relationship between corporate governance and quality of accounting information in the Jordanian public shareholding companies, where the study population consisted of all external certified accountants, while the study sample consisted of a random sample of external certified accountants. Where (217) questionnaires distributed to external certified accountants. After applying the multiple regression equation and hierarchical regression equation test on the study data. The results were reached, the existence of a statistically significant impact on the application of governance rules in its dimensions (commitment of corporate governance to shareholder rights, commitment of corporate governance to equal treatment among shareholders, commitment of corporate governance to disclosure and transparency, commitment of corporate governance to responsibilities The Board of Directors) on the quality of accounting information, and there is also a modified effect of forensic accounting with statistical significance on the relationship between the application of corporate governance rules in its dimensions and the quality of accounting information with its elements (The relevance and the faithful representation of the accounting information) in the Jordanian public shareholding companies. The study recommends the necessity of continuing commitment of boards of directors in companies to the application of governance rules and laying down the necessary and strict controls to ensure their implementation. And also the necessity of holding training courses for certified accountants specialized in the field of Forensic Accounting.

The Impact Of Business Process Reengineering (BPR) On The Reduction Of The Production Costs In The Jordanian Public Shareholding Companies Listed On The ASE

The Impact Of Business Process Reengineering (BPR) On The Reduction Of The Production Costs In The Jordanian Public Shareholding Companies Listed On The ASE

The Impact of Innovation on Profitability of Jordanian Services Companies

This research paper attempts to reveal the level of innovation types in Jordanian services companies. It also investigates the relationship between the overall innovation and profitability in these services companies. Innovation types have been measured through a questionnaire distributed to the members of Securities Depository Center SDC - Public Shareholding Companies – Service Sector. Profitability has been measured through the mean of net profits after taxes for the two years 2018 and 2019. The research findings indicate that innovation types in these companies is slightly below the average level. The results of research also indicate that there is a statistically significant positive impact of overall innovation on profitability of Jordanian services companies. The research concludes that investment in innovation is a key pillar for profitability of business companies.

The Impact of Mergers on the Financial Performance of Jordanian Public Shareholding Companies

This study examines the impact of mergers on the financial performance of the Jordanian public shareholding companies. The study employs data collected for a sample of 10 Jordanian non-financial public firms that were engaged in legal horizontal merger deals between 2000 and 2013. The data was collected from the published annual financial reports of the merging companies and comparative companies for three years before the merger and three years after the merger. Event study methodology was applied to examine the data. Four measures of financial performance (FP) were used, which are return on assets (ROA), return on equity (ROE), earnings per share (EPS), and net profit margin (NPM). Two methods were used in the analysis - the change model and the intercept model using financial performance raw data and industry-adjusted data. The findings in general showed no significant impact of mergers on the financial performance of merging firms using the change model. However, by using the intercept model, significant impact of mergers on the financial performance was found on the sample of the study. The significant impact was found for mergers on the raw ROE of the merging firms, and on the ROA and NPM of the industry-adjusted firms.

The Impact of Prevention Costs in Improving the Value Chain in the Jordanian Industrial Public Shareholding Companies

This study aimed to demonstrate the impact of prevention costs on improving the value chain in Jordanian public shareholding industrial companies. That was through the development of the questionnaire as the study tool, whereby the study population is from all the industrial Jordanian public shareholding companies, whose number is (62) (Amman Financial Market, 2019), where a random sample consisting of (53) companies was taken. A (160) questionnaire was randomly assigned to these companies and (107) questionnaires were retrieved for analysis, and the data were analyzed using the SPSS program. The results of the study showed that there is a positive effect of prevention costs in general on improving the value chain in Jordanian public shareholding industrial companies, and the results of the study indicated that there is a high impact for each of the variables (quality planning costs, product design costs, preventive maintenance costs, training costs. On quality, costs of externalities) on improving the value chain. As for the costs of studies and research, they had a moderate impact on improving the value chain. The study recommended the need to develop and improve work with quality tools, especially costs of prevention, to improve productivity and improve the value chain in industrial companies.

Do seasoned industry specialists provide higher audit quality? A re-examination

The purpose of this paper is to re-examine the recent findings in Gaver and Utke (2019) (GU) who find that seasoned industry specialist auditors provide higher audit quality. We first illustrate how the magnitude of residuals from the accruals model can vary significantly by industry, thus highlighting the importance of including industry fixed effects when the dependent variable is discretionary accruals. We next replicate GU’s findings. We first attempt to replicate prior literature after including industry fixed effects in the audit quality (discretionary accruals) models. This is an important control, as the relevant benchmark for a firm with an industry specialist auditor is a peer firm in the same industry with a non-specialist auditor. We find that after including industry fixed effects, there is no association between seasoned industry specialist auditors and discretionary accruals. We also find that the association between industry specialization and discretionary accruals is very sensitive to the way in which the researcher calculates specialization. Our findings are informative for shareholders of public companies who vote on auditor ratification.

The Impact of the Application of International Accounting Standard 34 (IAS 34) on the Industrial Public Shareholding Companies’ Sector in Jordan

This study aims at identifying the extent to which IAS 34 (Interim financial reporting) is applied in the Jordanian public shareholding companies, along with highlighting the impact of its application on individual investors at these companies. Study population consists of all Jordanian public shareholding industrial companies (45 companies) listed at Amman Stock Exchange. Due to the large number of the study population, preparers of financial statements (employees of companies), and individual investors, we have selected a simple random sample. The total number of preparers of financial statements (employees), and individual investors were (500) individuals who were selected for the sample. The results showed that all companies are committed to issue and publish interim financial reports within the period specified for that purpose. There is a statistically significant relationship between the variables relevant to the company including (the firm's nature, profitability, and age) and the compliance with issuing the reports and the information content of the financial statements. Moreover there are statistically significant differences in the extent to which IAS 34 is applied in the Jordanian public shareholding companies. These differences arise due to the personal and occupational characteristics of the preparers of financial statements (gender, age, qualification, position, and experience).

The impact of the characteristics of the audit committees on avoiding financial failure in Jordanian Industrial Public Shareholding Companies listed in ASE (Amman Stock Exchange) – Applied study

The impact of the characteristics of the audit committees on avoiding financial failure in Jordanian Industrial Public Shareholding Companies listed in ASE (Amman Stock Exchange) – Applied study