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1 – 10 of 193Mohammad Ta'Amnha, Mohannad Jreissat, Ghazi Samawi, Luai Jraisat, Omar M. Bwaliez, Anil Kumar, Jose Arturo Garza-Reyes and Arvind Upadhyay
Lean management is a contemporary management system that firms adopt to boost their performance. Lean management can be integrated with human resources management to develop a new…
Abstract
Purpose
Lean management is a contemporary management system that firms adopt to boost their performance. Lean management can be integrated with human resources management to develop a new concept of lean human resources management (LHRM). This entails the implementation of several practices. However, the LHRM–performance paradigm remains underexplored in the literature. Hence, this study aims to examine the interrelationships between LHRM practices and the impacts of those practices on firm performance (FP).
Design/methodology/approach
Using two equal-sized samples (n = 250 each) of manufacturing firms in Jordan and Germany, this study proposes two structural equation models (i.e. a Jordanian and a German models) depicting the interrelationships between LHRM practices and the impacts of those practices on FP. After testing these models, a comparison between them is conducted, producing findings with theoretical and practical implications.
Findings
The main findings of this study indicate that the average implementation of LHRM practices among German manufacturing firms is at a higher level than the average implementation among Jordanian firms. The findings also support the proposed interrelationships between LHRM practices and the impact of those practices on FP for both the Jordanian and German models.
Originality/value
To the best of the authors’ knowledge, this study is among the first to highlight the proposed relationships, both in general and in the context of comparing developed and developing countries. Its findings have important implications that can enable manufacturing managers to benefit from the implementation of LHRM practices to enhance FP in different contexts. These findings provide valuable insights for human resource managers and decision-makers and open several avenues for future research.
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Malek Alshirah and Ahmad Alshira’h
The aim of this study is to measure the risk disclosure level and to determine the relationship between ownership structure dimensions (institutional ownership, foreign ownership…
Abstract
Purpose
The aim of this study is to measure the risk disclosure level and to determine the relationship between ownership structure dimensions (institutional ownership, foreign ownership and family ownership) and corporate risk disclosure in Jordan.
Design/methodology/approach
This study used a sample of 94 Jordanian listed firms from the Amman Stock Exchange for the period from 2014 to 2017. This study measured risk disclosure using the number of risk-related sentences in the annual report, while random effects regression was used for hypotheses testing.
Findings
The results revealed that family ownership has a negative effect on risk disclosure practices, but institutional ownership, foreign ownership, firm size and leverage have no significant effect on the risk disclosure level.
Practical implications
The finding of this study is more likely be useful for many concerned parties, researchers, authorities, investors and financial analysts alike in understanding the current practices of the risk disclosure in Jordan, thus helping them in reconsidering and reviewing the accounting standards and improving the credibility and transparency of the financial reports in the Jordanian capital market.
Originality/value
This study offers novel evidence detailing the impact of ownership structure toward corporate risk disclosure, its implementation in emerging markets following the minimal amount of scholarly efforts on the topic. To the best of the authors’ knowledge, this is the first examination of the impact of ownership structure on corporate risk disclosure. Thus, this study has important implications for the decisions of executives, policymakers, shareholders and lenders, as it enables them to better understand the linkage between ownership structure on corporate risk disclosure.
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Malik Abu Afifa, Isam Saleh, Aseel Al-shoura and Hien Vo Van
The direct nexus between board characteristics, earnings management (EM) practices and dividend payout is examined in this study, followed by an examination of the indirect…
Abstract
Purpose
The direct nexus between board characteristics, earnings management (EM) practices and dividend payout is examined in this study, followed by an examination of the indirect mediation impact of EM practices in the nexus between board characteristics and dividend payout. It aims to provide new empirical evidence from the Jordanian market, which is an emerging market.
Design/methodology/approach
The study population consists of all service firms that were listed on the Amman Stock Exchange (ASE) between 2012 and 2019. Due to the lack of availability of their complete data during the period, four service firms were omitted from the population; hence, a sample of 43 service firms was acquired over the time frame (2012–2019), yielding a total of 344 firm-year observations. Moreover, panel data analysis was employed in this study, and data for the study were acquired from yearly reports as well as the ASE's database.
Findings
Based on the GMM estimator findings, board size and independence have a negative and significant influence on the EM, but CEO/chairman duality has a positive and significant impact. Simultaneously, the impacts of female representation on the board of directors and the number of board meetings were both positive but insignificant. The findings also found that four board characteristics, including board size, female representation on the board of directors, CEO/chairman duality and the number of board meetings, had a significant negative or positive effect on dividend payout, while board independence did not. Additional findings show that EM practices have a direct negative insignificant effect on dividend payout, whereas EM practices partially mediate the relationship between board characteristics and dividend payout.
Research limitations/implications
The current study's limitation is that it only searched in Jordanian service firms listed on ASE from 2012 to 2019 to fulfill the study's objectives; thus, we urge that future work explores the study models for other sectors, whether in Jordan or other growing markets such as the Middle East and North Africa.
Practical implications
The findings of this study may be utilized by analysts, investors and other strategic decision-makers to enhance Jordan's financial market's efficiency and efficacy. These findings will improve policymakers' willingness to impose appropriate constraints, perhaps boosting Jordan's financial market performance and efficacy. These findings may also help investors make more enlightened judgments by utilizing board characteristics and EM factors that predict firm dividend policy.
Originality/value
Contradictions in the results of earlier investigations inspired the current study, with the findings filling a gap in the existing literature. This study differs from previous studies by constructing a novel research model and analyzing the mediating influence of EM in the nexus between board characteristics and dividend payout.
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Hani Alkayed and Bilal Fayiz Omar
This study aims to investigate the determinants of the extent and quality of corporate social responsibility disclosure (CSRD) in Jordan. The study examines a number of factors…
Abstract
Purpose
This study aims to investigate the determinants of the extent and quality of corporate social responsibility disclosure (CSRD) in Jordan. The study examines a number of factors that influence the extent and quality of CSR disclosure, such as corporate characteristics, corporate governance and ownership structure.
Design/methodology/approach
A quantitative approach and a content analysis technique is used to measure the extent and quality of CSRD from annual reports. The sample is drawn from the annual reports of 118 Jordanian companies between 2010 and 2015. A CSRD index is constructed, which includes the disclosures of the following categories: environmental, human resources, product and consumers, and community involvement. This is the first study that presents a new measurement for CSR disclosure quality by using images and charts in a seven-point scale measurement.
Findings
The result reveals that the extent of CSRD is higher than quality in Jordan. Regarding the determinants of CSR disclosures, the following factors were found to have a significant relationship with both the extent and quality of CSRD: board size, non-executive directors, age of firm, foreign members on the board, number of boards meetings, the presence of audit committees, big 4, government ownership, size of firm and industry type. Non-executive directors was found to have a significant correlation with the extent of CSRD.
Research limitations/implications
The current study has some limitations; first, the study findings are limited to the Jordanian environment. Second, the study adopted a purely quantitative method, and future research could include interviews and questionnaires to gather data from financial managers and chief executive officers (CEOs). Third, the potential influences on the level and quality of CSR are not limited to the variables tested in this study. Future research can be done on new determinants, such as CEO interlocking and profitability. Finally, the sample included companies from two main sectors – the services and industrial sectors; thus, this limited the results to these two main sectors.
Practical implications
Practitioners, as firms, should develop new strategies and ensure that CSR is included in their reports. Thus, companies can achieve legitimacy for their products and activities. Policymakers must consider introducing new laws that mandate CSRDs since it has many advantages for companies and society. In addition, this research suggests amending the law to require companies to have 33% of their directors be non-executives since this will remove the negative effect on CSR disclosure. Investors must pay attention to the social activities of the companies they invest in, as CSR could have a positive effect on their market value.
Social implications
The study has indicated that Jordanian companies became increasingly more involved in CSR activities, as this growth in CSRD is linked with global increases in CSR. Moreover, the study has revealed that the highest category of CSR disclosures is related to products or services and employee information. On the other hand, the lowest category of CSR disclosures is related to community and other disclosures (extent) and environmental disclosures (quality). Furthermore, the results show that the services sector was found to have more disclosures regarding employees and community, whereas the industrial sector was more concerned about environmental and product information.
Originality/value
To the best of the authors’ knowledge, this is the first study that presents a new measurement for CSR disclosure quality by using images and charts in a seven-point scale measurement. This new seven-point scale will be adopted to distinguish between poor and excellent disclosures. In addition, to the best of the authors’ knowledge, this is the first study in Jordan which examines the determinants of the extent and the quality of CSR for three categories, namely, corporate characteristics, corporate governance and ownership structure.
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Islam Abdeljawad, Muiz Abu Alia and Muhannad Demaidi
Existing theories on the determining factors of corporate investment decisions raise the importance of financial market imperfections in explaining investment behavior. Many…
Abstract
Purpose
Existing theories on the determining factors of corporate investment decisions raise the importance of financial market imperfections in explaining investment behavior. Many factors have been proposed as drivers of investment, mainly in developed economies, while emerging countries have almost been neglected. The main purpose of this study is to examine the effect of financing constraints on the investment behavior of a small context, namely, Jordan, with an imperfect environment.
Design/methodology/approach
This study considers panel data regressions from the industrial companies traded at the Amman Stock Exchange with a total of 1,058 firm-year observations.
Findings
The results are able to demonstrate that business size, tangibility, market-to-book ratio, profitability, financial slack and leverage are major drivers of investment choices. The results support the importance of information asymmetry in explaining the investment behavior of firms. Nonetheless, the Q-theory is in place, as is firm agility.
Practical implications
Policies to reduce information asymmetry are immediately needed to help firms increase investments by providing them with access to training, technology and market information. They also should enhance the firms’ opportunities for growth. Moreover, they should make it easier for businesses to access financial slack, such as by improving access to credit and financial institutions. They also can work to improve the financial infrastructure to meet the financing needs of businesses. Finally, smaller businesses should be assisted by improving their ability to invest and grow.
Originality/value
To the best of the authors’ knowledge, this is one of the first studies, if any, to investigate this issue in a distinct environment. Despite the unique characteristics of Jordan, the findings are applicable to other countries that experience comparable political and economic circumstances because Jordan has traits common to many emerging nations.
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The study aims to examine the impact of three types of supply chain integration (SCI) on supply chain flexibility (SCF), investigate the impact of SCF on supply chain performance…
Abstract
Purpose
The study aims to examine the impact of three types of supply chain integration (SCI) on supply chain flexibility (SCF), investigate the impact of SCF on supply chain performance (SCP) and analyse the indirect impact of SCI on SCP by considering the mediating role of SCF within the manufacturing sector of Jordan.
Design/methodology/approach
This study used a quantitative approach to validate the study model. An online self-completed questionnaire was used to gather data from 219 participants from managers in various Jordanian manufacturing firms. SmartPLS software was used to perform structural equation modelling to test the formulated hypotheses.
Findings
Based on the findings of the study, firms in Jordan's manufacturing sector would benefit from developing an integrative and flexible supply chain to boost SCP in the present volatile, uncertain, complex and speculative market. In addition, SCP was significantly influenced by investments in supply chain management practices related to SCI and SCF. Moreover, SCF significantly moderated the relationship between SCI and SCP. Thus, SCI and SCF assisted firms in reaching their highest potential performance through increased productivity, decreased expenses and increased satisfaction of their customers.
Research limitations/implications
The study employed a cross-sectional design using SCF as a single construct. Future research should look into the specific type of SCFs that have an immense effect on SCP and how these types are affected by the three types of SCI. Furthermore, future research ought to employ probability sampling techniques to improve the generalizability of results or using a longitudinal data-collection design. Finally, additional research should be conducted to validate the findings of this study by replicating it in other specific industries or countries.
Originality/value
The study fills an identified gap based on previous studies by exploring the linkages between SCI, SCF and SCP in the context of manufacturing sector. Moreover, based on the relational view theory, the study proposed an assessment mechanism for SCP for firms based on the link between three types of SCI and SCF.
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Luay Jum'a, Dominik Zimon and Peter Madzik
The purpose of this paper is to develop a theoretical model that explains the impact of big data analytics capabilities (BDAC) on company's supply chain innovation capabilities…
Abstract
Purpose
The purpose of this paper is to develop a theoretical model that explains the impact of big data analytics capabilities (BDAC) on company's supply chain innovation capabilities and sustainable supply chain performance. BDAC is represented through two dimensions of big data technological capabilities (BDTC) and big data personal capabilities (BDPC). Moreover, the relationships between BDTC and BDPC with sustainable supply chain performance through the mediation effect of supply chain innovation capabilities are examined.
Design/methodology/approach
The study used a quantitative research approach. A survey of 400 Jordanian manufacturing companies was carried out to conduct this research. However, the responses of 207 managers were valid to be used in the analysis. In this study, the SmartPLS software was used to perform structural equation modeling using a partial least squares approach (PLS-SEM) and to examine the measurement and structural model's validity and reliability.
Findings
According to the results of this study, BDPC has a significant positive impact on supply chain innovation capabilities. Furthermore, the findings indicate that supply chain innovation capabilities are the most influential predictor of sustainable supply chain performance and act as a positive significant mediator in the relationship between BDPC and firm sustainable performance. Surprisingly, the study found that BDTC had no significant effect on supply chain innovation capabilities. Besides that, no significant relationship exists between BDTC and firm sustainable performance via the mediation effect of supply chain innovation capabilities.
Originality/value
This study provides an integrated research model that incorporates BDAC, supply chain innovation capabilities, and sustainable supply chain performance in order to analyze supply chain innovation and sustainable supply chain performance. This suggests that the scope of the study is broader in terms of predicting sustainable supply chain performance. As a result, the study intends to fill a gap in the literature by explaining how BDAC affects supply chain innovation capabilities and firms sustainable performance. In addition, the role of supply chain innovation capabilities as a mediator between BDAC and sustainable supply chain performance is investigated.
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Amneh Alkurdi, Taha Almarayeh, Hanady Bataineh, Hamzeh Al Amosh and Saleh F.A. Khatib
This paper aims to investigate the relationship between corporate profitability (CP) and effective tax rate (ETR) and to examine whether this relationship is moderated by board…
Abstract
Purpose
This paper aims to investigate the relationship between corporate profitability (CP) and effective tax rate (ETR) and to examine whether this relationship is moderated by board gender diversity (BGD).
Design/methodology/approach
The multivariate regression analysis was conducted to test the relationship between related variables. This study used sample of 70 Jordanian firms listed on the Amman Stock Exchanges for the period 2013 – 2020.
Findings
The results show a negative relationship between CP and ETR. Furthermore, the moderating variable BGD changes the strength and the sign, from a negative to a positive influence, of the relationship between CP and ETR.
Originality/value
To the best of the authors' knowledge, this study is among the first that provides empirical evidence regarding the relationship between CP and ETR in the light of BGD. Further, this study provides new and important insights that are not evident from the previous literature.
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Esraa Esam Alharasis, Abeer F. Alkhwaldi and Khaled Hussainey
This study aims to investigate the moderating effect of the COVID-19 epidemic on the relationship between key audit matter (KAM) and auditing quality.
Abstract
Purpose
This study aims to investigate the moderating effect of the COVID-19 epidemic on the relationship between key audit matter (KAM) and auditing quality.
Design/methodology/approach
The authors use the ordinary least squares regression on data from 942 firm-year observations of Jordanian non-financial institutions across the period (2017–2022) to test the hypotheses. The authors use content analysis method to measure levels of KAM disclosure.
Findings
The investigation’s findings highlight the importance of KAM disclosure in achieving audit quality in line with international standard on auditing no. 701 (ISA-701) requirements. COVID-19 is also found to have a positive relationship with audit quality, further confirming the crisis’s devastating impact on audit complexity and risks and providing evidence for the need for supplementary, high-quality audit services. Due to the correlation between KAM disclosure and increased auditor workload and responsibility, the analysis reveals that the COVID-19 factor strengthens the link between KAM disclosure and audit quality.
Practical implications
This study has the potential to be used as a basis for the creation of a new regulation or standard regarding the reporting of unfavourable events in financial filings. This study’s findings provide standard-setters, regulators and policymakers with current empirical data on the effects of implementing ISA-701’s mandate for external auditors to provide more information on KAM. The COVID-19 crisis offers a suitable setting in which to examine the value of precautionary disclosures in times of economic uncertainty, as well as the significance of confidence interval disclosures and the role of external auditing in calming investor fears. This analysis is helpful for stakeholders, regulatory agencies, standard-setters and readers of audit reports who are curious about the current state of KAM disclosures and the implementation of ISA-701. The results may have ramifications for academia in the form of a call for more evidence expanding this data to other burgeoning fields to have a clear explanation of the real impact of reporting KAM on audit practices.
Originality/value
To the authors’ awareness, this research is one of the few empirical studies on the effect of the COVID-19 crisis on auditing procedures, and more specifically, the effect of disclosures on KAM by external auditors on audit quality. This study’s findings represent preliminary scientific evidence linking the pandemic to business performance. Minimal research has been done on how auditors in developing nations react to pandemic investor protection and how auditors’ enlarged reporting responsibilities affect them. The vast majority of auditing studies have been conducted in a highly regulated system, so this research contributes by examining audit behaviour in a weak legal context.
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This study aims to evaluate the Accounting Information Systems (AIS) effectiveness on the organizational level by extending DeLone and McLean success model in developing countries…
Abstract
Purpose
This study aims to evaluate the Accounting Information Systems (AIS) effectiveness on the organizational level by extending DeLone and McLean success model in developing countries like Jordan. Unlike other studies, this study investigates the effects of system quality, information quality, process quality, collaboration quality, service quality, individual performance and workgroup performance toward organizational performance during the period of the COVID-19 pandemic outbreak.
Design/methodology/approach
A self-administrated survey was used to collect data from 104 accounting managers operating in listed Jordanian firms in the Amman Stock Exchange (ASE). The partial least squares-structural equation modeling method was used for data analysis.
Findings
Eight relationships were tested, whereby six were supported as was expected. Particularly, the empirical results reveal that individual performance is positively and significantly influenced by information quality, process quality and service quality. Furthermore, workgroup performance is positively and significantly influenced by individual performance. The results also show that organizational performance is impacted by individual performance and workgroup performance.
Originality/value
The current study is among the first empirical studies that has extended the information systems success model to evaluate AIS success during COVID-19 pandemic. This study also offers insights into the importance of AIS success among listed Jordanian firms in ASE.
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