Factors affecting organizational intention to adopt forensic accounting practices: A case of Jordan
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Author(s)Nahed Habis AlrawashedhLink to ORCID Index: https://orcid.org/0000-0001-8810-3706
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DOIhttp://dx.doi.org/10.21511/ppm.21(3).2023.27
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Article InfoVolume 21 2023, Issue #3, pp. 343-350
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229 Downloads
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Creative Commons Attribution 4.0 International License
Lack of effective internal control, subpar financial reporting, and inefficient audits have all harmed an organization’s ability to operate efficiently. Organizations are now under pressure to enhance their auditing procedures in order to stop and catch fraud. Forensic accounting techniques have gained attention in this direction as a fraud identification and prevention tool. This study aims to examine the factors that affect an organization’s intention to adopt forensic accounting practices. The analysis is based on primary data and uses a sample of 273 employees from listed firms in Jordan to examine this phenomenon. Specifically, the study used correlation and regression analysis to investigate whether coercive, mimetic, and normative pressures determine organizations’ intentions to use forensic accounting practices. The results confirm a significant positive relationship between coercive, mimetic, and normative pressure and the organizations’ intentions to use forensic accounting practices among Jordanian firms. These results highlight the importance of management consultants and training of the employees for appropriate fraud risk management.
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JEL Classification (Paper profile tab)M41, M42, M48
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References42
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Tables7
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Figures0
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- Table 1. Sample description
- Table 2. Number of respondents
- Table 3. Reliability test
- Table 4. Demographic profile of respondents
- Table 5. Descriptive statistics
- Table 6. Correlation results
- Table 7. Regression results
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Liquidity, leverage, and solvency: What affects profitability of industrial enterprises the most?
Maha D. Ayoush ,
Ahmad A. Toumeh ,
Khaled I. Shabaneh
doi: http://dx.doi.org/10.21511/imfi.18(3).2021.22
Investment Management and Financial Innovations Volume 18, 2021 Issue #3 pp. 249-259 Views: 2139 Downloads: 1091 TO CITE АНОТАЦІЯThe purpose of this paper is to show the relative impact of liquidity, leverage, and solvency on profitability of industrial enterprises listed on the Amman Stock Exchange to ascertain which of them has the most effect on profitability. To reach the objectives of this study, 44 Jordanian industrial companies are examined from 2012 to 2018. Return on assets (ROA) and return on equity (ROE) are examined as measures of performance, current ratio and quick ratio as measures of liquidity, debt ratio and debt to equity ratio as measures of leverage, and the interest coverage ratio as a measure of financial solvency. Multiple regression analysis was used to check the hypotheses. A negative and statistically significant impact was found at the 1% level between financial leverage and profitability. At the same time, findings did not show the same for the effect of liquidity and solvency on profitability. In addition, leverage has the highest relative impact among independent variables on profitability, followed by solvency and then liquidity. Moreover, it is indicated that company size is a control variable of the effect between liquidity, leverage, and solvency on performance. Thus, it is concluded that management of industrial companies should reduce dependence on debt to finance companies to achieve the highest possible returns; it is recommended to maintain an acceptable level of liquidity to ensure the continuity of companies and attention to the level of solvency within companies to maintain a high financial performance.
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Effect of financial leverage on firm growth: empirical evidence from listed firms in Amman stock exchange
Basem Hamouri ,
Mahmoud Al-Rdaydeh 
,
Anas Ghazalat
doi: http://dx.doi.org/10.21511/imfi.15(2).2018.14
Investment Management and Financial Innovations Volume 15, 2018 Issue #2 pp. 154-164 Views: 1910 Downloads: 661 TO CITE АНОТАЦІЯPast studies have mostly investigated the significance of financial attributes in trade affairs of developed countries, while dismissing such importance among developing nations. As such, this study looked into the influence of financial leverage upon the growth of Jordanian firms. For that purpose, a sample of 91 firms from Jordan had been analyzed via panel data regression method for the period between 2006 and 2015. As a result, the findings portrayed the irrelevance between financial leverage and growth of assets, but a significantly positive correlation with the growth of sales and employment. On top of that, this study revealed that growth of sales and employment had been significantly and positively correlated with firm size. In short, this study dismissed the speculation the constraint Jordanian firms were in, but on the contrary, displayed the ability to gain external financing to ascertain successful progress.
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Stock market performance: Reaction to interest rates and inflation rates
Marwan Alzoubi
doi: http://dx.doi.org/10.21511/bbs.17(2).2022.16
Banks and Bank Systems Volume 17, 2022 Issue #2 pp. 189-198 Views: 1106 Downloads: 591 TO CITE АНОТАЦІЯThis paper investigates the wealth effects of the consumer price index, interest rate, domestic credit and real economic activity on the Amman Stock Exchange performance. Over the period 1991–2020 using the autoregressive distributed lag (ARDL) bounds test. While the interest rate is a powerful monetary tool to fight inflation and recession, it can be detrimental to investors. The target variables, consumer price index (CPI) and interest rate (IDR), are both highly significant with the correct signs. An increase of 1 percent in CPI and IDR leads to a fall in stock prices by 1.6 percent and 5 percent, respectively. While the central bank is targeting inflation by raising interest rates, its actions reflect negatively on the stock market. The short-run model confirms the causality from the independent variables to the dependent variable. Moreover, the error correction term (ECT) is very high and significant at the 1 percent level amounting to 83.3 percent, which confirms the evidence of the long-run relationship. Monetary objectives are really important, but financial stability is also important.
