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Accounting Conservatism and Ownership Structure Effect: Evidence from Industrial and Financial Jordanian Listed Companies

Author

Listed:
  • Amneh Alkurdi

    (Ministry of Trade and Industry, Jordan,)

  • Munther Al-Nimer

    (Al-Ahliyya Amman University, Jordan,)

  • Mohammad Dabaghia

    (Al-Ahliyya Amman University, Jordan,)

Abstract

This study aims to examine the impact of ownership structure on the level of accounting conservatism in Jordan by using a sample of 99 manufacturing and financial companies listed on the Amman stock exchange between 2005 and 2013. On one hand, ownership structure was measured by: Foreign; governmental; institutional; and concentration of ownership. On the other hand, accounting conservatism was measured by accrual-based measures. This study used the ordinary least square method was as the multiple regression analysis. It was found that three of the independent variables were significant and one was not. The study's findings show that there is an inverse effect of governmental ownership on accounting conservatism. In contrast, the study indicates a significant and positive relationship between foreign and institutional ownership with accounting conservatism but the concentration of ownership doesn't affect conservatism. Based on these results, this paper provides some insights for the extant literature in this field and, for interested parties, conveys some conservatism policy implications. Additionally, this study will open doors for researchers to look at accounting conservatism in detail.

Suggested Citation

  • Amneh Alkurdi & Munther Al-Nimer & Mohammad Dabaghia, 2017. "Accounting Conservatism and Ownership Structure Effect: Evidence from Industrial and Financial Jordanian Listed Companies," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 608-619.
    • Handle: RePEc:eco:journ1:2017-02-80
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    Cited by:

    1. Rawan Atwa & Ruba Bsoul & Buthiena Kharabsheh & Mohammad Azzam, 2022. "The Association between Accounting Conservatism and Cash Holding, Dividends and Leverage," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 11, July.
    2. Asaad Mohammed Ali Wahhab & Murtadha Hasan Khlaif, 2022. "The Effect of Ownership Structure and Audit Quality in Producing High-Quality Financial Statements - Evidence from the Iraq Stock Exchange," Technium Social Sciences Journal, Technium Science, vol. 34(1), pages 13-31, August.
    3. Mohammed Hassan Makhlouf & Fares Jamiel Al-Sufy & Haitham Almubaideen, 2018. "Board Diversity and Accounting Conservatism: Evidence from Jordan," International Business Research, Canadian Center of Science and Education, vol. 11(7), pages 130-141, July.
    4. repec:thr:techub:10034:y:2022:i:1:p:13-31 is not listed on IDEAS

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    More about this item

    Keywords

    Accounting Conservatism; Ownership Structure; Amman Stock Exchange;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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