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AI-Driven Financial Transparency and Corporate Governance: Enhancing Accounting Practices with Evidence from Jordan

Author

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  • Osama Samih Shaban

    (Accounting Department, Faculty of Business, Al-Zaytoonah University of Jordan, Amman 11733, Jordan)

  • Arwa Omoush

    (Accounting Department, Faculty of Business, Al-Zaytoonah University of Jordan, Amman 11733, Jordan)

Abstract

Integrating artificial intelligence (AI) into financial transparency and corporate governance has reshaped how organizations ensure accountability, regulatory compliance, and risk management. This study examines the impact of AI-driven financial transparency on corporate governance and regulatory reform, focusing on Jordan. Utilizing a stratified random sampling approach, data were collected from 564 corporate professionals across key economic sectors. Statistical analyses, including structural equation modeling (SEM) and multiple regression analysis, reveal that AI adoption significantly enhances corporate governance effectiveness (R 2 = 0.582), improves risk management (R 2 = 0.502), and increases stakeholder engagement (R 2 = 0.681). AI also facilitates regulatory compliance by automating monitoring processes and reducing human errors in financial disclosures. However, challenges such as bias in AI algorithms, data privacy concerns, and the need for regulatory adaptation persist. These findings contribute to the body of knowledge on AI-driven governance and provide insights for policymakers and corporate leaders.

Suggested Citation

  • Osama Samih Shaban & Arwa Omoush, 2025. "AI-Driven Financial Transparency and Corporate Governance: Enhancing Accounting Practices with Evidence from Jordan," Sustainability, MDPI, vol. 17(9), pages 1-26, April.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:9:p:3818-:d:1640960
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    References listed on IDEAS

    as
    1. Ahmad A. Toumeh, 2023. "The Effect of Risk Management Committee Characteristics on Firm Performance: An Empirical Investigation," Indian Journal of Corporate Governance, , vol. 16(2), pages 323-342, December.
    2. Dima Dajani & Saad G. Yaseen & Ihab El Qirem & Hanadi Sa’d, 2022. "Predictors of Intention to Use a Sustainable Cloud-Based Quality Management System among Academics in Jordan," Sustainability, MDPI, vol. 14(21), pages 1-18, November.
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