The moderating role of IFRS in the relationship between risk management and financial disclosure in Jordanian banks
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Received February 13, 2022;Accepted September 2, 2022;Published September 26, 2022
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Author(s)Link to ORCID Index: https://orcid.org/0000-0001-6964-4785Link to ORCID Index: https://orcid.org/0000-0001-6288-4743Link to ORCID Index: https://orcid.org/0000-0002-5885-6982Link to ORCID Index: https://orcid.org/0000-0002-3762-3186
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DOIhttp://dx.doi.org/10.21511/bbs.17(3).2022.14
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Article InfoVolume 17 2022, Issue #3, pp. 167-176
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This study investigated the impact of IFRS on the relationship between risk management and financial disclosure in Jordanian banks in light of the Covid-19 pandemic. The study data were collected from Jordanian banks’ financial reports with the help of panel data to measure IFRS and risk management. The study depended on daily data, at a rate of (256) trading days from March 3, 2020 until April 29, 2021. Also, the study used questionnaires to measure financial disclosure in addition to interviews with eight Jordanian bank managers. Multiple regression was used to test hypotheses. The study found a positive statistically significant relationship between risk management and financial disclosure. The relationship was portrayed by a coefficient of 0.315. The result also showed the moderating role of IFRS in such a relationship, the effect reached 0.696. The conclusions have implications for both theory and practice. In fact, the findings elucidated the connection between risk management, IFRS, and financial disclosure. Finally, Jordanian banks should focus on IFRS and risk management, enhanced management, and employee skills as recommendations in this study. Thus, Jordanian banks pay particular attention to IFRS and risk management in order to achieve profitability through financial disclosure.
Acknowledgment
The publication of this research has been supported by the Deanship of Scientific Research and Graduate Studies at Philadelphia University – Jordan.
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JEL Classification (Paper profile tab)G21, G32, M41
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References32
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Tables4
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Figures2
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- Figure 1. Model of the study
- Figure 2. Regression standardized residual
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- Table 1. Normality result
- Table 2. Multicollinearity test
- Table 3. Coefficients
- Table 4. Moderating analysis
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Conceptualization
Qasim Ahmad Alawaqleh, Mohammad Hamdan, Ahmed Al-Jayousi, Rana Airout
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Data curation
Qasim Ahmad Alawaqleh, Mohammad Hamdan, Ahmed Al-Jayousi, Rana Airout
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Formal Analysis
Qasim Ahmad Alawaqleh, Mohammad Hamdan, Ahmed Al-Jayousi, Rana Airout
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Investigation
Qasim Ahmad Alawaqleh, Mohammad Hamdan, Ahmed Al-Jayousi, Rana Airout
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Methodology
Qasim Ahmad Alawaqleh, Mohammad Hamdan, Ahmed Al-Jayousi, Rana Airout
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Project administration
Qasim Ahmad Alawaqleh, Mohammad Hamdan, Ahmed Al-Jayousi, Rana Airout
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Validation
Qasim Ahmad Alawaqleh, Mohammad Hamdan, Ahmed Al-Jayousi, Rana Airout
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Writing – original draft
Qasim Ahmad Alawaqleh, Mohammad Hamdan, Ahmed Al-Jayousi, Rana Airout
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Writing – review & editing
Qasim Ahmad Alawaqleh, Mohammad Hamdan, Ahmed Al-Jayousi, Rana Airout
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Conceptualization
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The risk management practices in the manufacturing SMEs in Cape Town
Clinton Mbuyiselo Sifumba , Kevin Boitshoko Mothibi , Anthony Ezeonwuka , Siphesande Qeke , Mamorena Lucia Matsoso doi: http://dx.doi.org/10.21511/ppm.15(2-2).2017.08Problems and Perspectives in Management Volume 15, 2017 Issue #2 (cont. 2) pp. 386-403 Views: 3390 Downloads: 536 TO CITE АНОТАЦІЯRisk management is one of the prominent issues which are pivotal to the success of a business and may adversely affect profitability if not properly practised. Therefore, the main objective of this paper was to determine risk management practices in manufacturing SMEs in Cape Town. The research conducted was quantitative in nature and constituted the collection of data from 74 SME leaders, all of whom had to adhere to a list of strict delineation criteria. All data collected were thoroughly analyzed through means of descriptive statistics. From the findings made, it is clear that SMEs in the manufacturing sector do in fact understand risk management initiatives applicable to ‘manage’ their respective businesses towards sustainability, but not to a large extent. It was found that respondents are unaware of the elements which make risk management effective, which ultimately aids to the development of problems for SMEs. All employees, managers and owners must coordinate their efforts together to identify and manage organizational risks within their ambit to obtain total risk coverage, as well as provide assurance that these risks are effectively managed from a coordinated approach. Further studies may be carried out to identify measures that can be taken to improve the effectiveness of risk management practices in SMEs.
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Integration of enterprise risk management and management control system: based on a case study
Investment Management and Financial Innovations Volume 14, 2017 Issue #1 pp. 19-26 Views: 2004 Downloads: 1973 TO CITE АНОТАЦІЯThis paper aims to discuss the concepts and methodological issues of enterprise risk management (ERM). The case study of company A shows that ERM has been implemented and integrated with management control as a means of monitoring its subsidiaries. First, ERM system was implemented through comprehensive review of corporate risk policies, risk management processes, roles and responsibilities, and risk culture. Second, company A integrated ERM with the existing management control system in order to evaluate the risk underlying the current management activities. Finally, ERM implementation was expanded to all subsidiaries so that each business unit would be delegated for its own risk management. This paper provides insight on the process how group-level internal auditors can use ERM as a tool to manage risk of subsidiaries, thereby filling the gap between academic research and practice. This successful ERM adoption case can be used as a guideline for other organizations, which plan to adopt ERM with reduced costs and improved processes.
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The determinants of liquidity risk of commercial banks in Vietnam
Tu T. T. Tran , Yen T. Nguyen , Thuy T.H. Nguyen , Long Tran doi: http://dx.doi.org/10.21511/bbs.14(1).2019.09Banks and Bank Systems Volume 14, 2019 Issue #1 pp. 94-110 Views: 1975 Downloads: 1196 TO CITE АНОТАЦІЯThis research identifies factors that explain the liquidity of commercial banks in the Vietnam banking system from 2010 to 2015. Using the OLS regression method for analysis, it was found that:
- the interbank market helps commercial banks improve their liquidity;
- the larger the loan size, the higher the liquidity risk;
- good credit risk management has a positive impact on liquidity risk management; and
- long-term interest rate is negatively related to the liquidity of commercial banks.
The research also makes recommendations on liquidity risk management policies to banks and policy-makers from the Government and the State Bank of Vietnam.