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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170 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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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: 1779 Downloads: 599 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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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: 1705 Downloads: 894 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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Exploring the effect of market risks on bank profitability: Evidence from Jordan
Mahmoud Al-Rdaydeh ,
Basem Hamouri ,
Abdul Aziz Abdul Rahman ,
Abdelrhman Meero ,
Mosab I. Tabash
doi: http://dx.doi.org/10.21511/bbs.17(1).2022.16
Banks and Bank Systems Volume 17, 2022 Issue #1 pp. 186-195 Views: 819 Downloads: 861 TO CITE АНОТАЦІЯThis paper observes the dynamic impact of market risks on the profitability of banks listed on the Amman Stock Exchange (ASE) from 2010 to 2018 in Jordan. To identify the link, the relevant data were retrieved from the annual statements of Jordanian banks and one-step Generalized Method of Moments (GMM) approach was employed to diagnose the error regarding endogeneity. The results of the applied methodology showed that market risks impacted the profitability of Jordanian banks. Furthermore, the study also presented factors that affected the banks’ profitability, such as capitalization and bank size. The previous year profitability has a positive effect on the next year profitability. Moreover, stock market returns (SMRs) directly affect ROA and ROE because when SMRs enhances, bank profitability will increase. Bank managers should ponder the volatility of the market risk while enhancing the profitability of a bank. This relationship of the variables regarding Jordanian banks listed on the ASE was not considered before in the financial economics literature. Recommendations were also provided for Jordanian bank managers to mitigate market risks.
