Volume 3, Special Issue: The Effect of Governance On The Companies Performance In Jordan

Author

Suleman Ali Eyal Awwad

Keywords

Corporate Governance, Audit Committee, Financial Performance, Earnings Quality

Abstract

This study examines the effects of the correlation between governance on the performance in the Jordanian companies, the sample comprises of 85 companies, 600 observations, listed in ASE for the period from (2008-2015), thus our goal is the correlation between the governance mechanisms and performance. The results of this research expose a strong correlation both the governance mechanisms and performance, and the results of this study have significant that supports encouraging the enforcement of the principles of governance and controlling the behavior of these committees, the reliability of data, financial information, and reports issued by companies can be enhanced. The results of the current study show that there is an important and strong relationship between governance and its mechanisms, as it showed that the independence of the audit committees and their experience have a positive and important impact on the performance and thus have an impact on the earnings and their quality and the financial reports of the Jordanian companies and the mitigation of earnings management. This study bridges the literature gap by providing empirical evidence on the efficiency of governance in Jordan and its impact on performance. Consequently, this study has a strong contribution to knowledge about governance, its mechanisms, earnings management, and assistance to specialists in making decisions.

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