Mahmoud M. Aleqab

Currently, the Jordanian economy needs more investment due to the growing financial deficit facing the Jordanian state. Therefore, this study came to increase investors' trust in financial reports issued by Jordanian companies to attract more investments. Based on that, this study will investigate the impact of audit committee dimensions on the efficiency of financial reports of limited partnership companies listed on the Amman Stock Exchange. The data were collected from financial reports issued by 52 limited partnership companies for the year 2021. The study used multiple regression to test the hypotheses. Based on the findings, audit committee dimensions explained the variation in financial reports' efficiency which reached 0.629. The audit committee members' size does not significantly affect the financial reports' efficiency. The significance reached 0.287. However, the knowledge of financial management has a significant positive effect on financial report efficiency; the significance reached 0.000 and the effect volume arrived at 0.699. Also, the findings showed that audit committee meetings have a greater effect on financial reporting efficiency than financial management knowledge. The impact was significantly positive, arriving at 0.790, while the significance reached 0.000. The main research conclusion is that limited partnership companies listed on the Amman Stock Exchange adopt corporate governance to achieve control effectiveness of audit committees to increase financial reporting efficiency to achieve more investments.

Acknowledgment
The publication of this research has been supported by the Deanship of Scientific Research and Graduate Studies at Philadelphia University – Jordan.

Type of the article: Research Article

Abstract
Financial reporting accuracy is central to investor confidence in emerging markets, yet the governance mechanisms protecting it remain underexamined in Jordan. This study examines whether board gender diversity and six functional diversity dimensions are associated with higher reporting accuracy, proxied by lower real earnings management (REM), among 105 Jordanian listed non-financial firms over 2017–2023 (735 firm-year observations). REM is estimated using Roychowdhury-type abnormal cash flows and production costs; panel regression models relate board composition to REM, controlling for firm size, leverage, and return on assets. A one-unit increase in female director share is associated with a 0.126 reduction in REM (β = −0.126, p < 0.05). All six functional diversity proxies – financial expertise, multiple directorships, board independence, board size, managerial ownership, and meeting frequency – are significantly and negatively associated with REM, with financial expertise showing the largest marginal effect (β = −0.059, p < 0.001) and meeting frequency the smallest (β = −0.003, p < 0.001). The gender-only model explains 7.9% of REM’s variation (R2 = 0.079); adding functional diversity more than doubles this to 19.0% (R2 = 0.190), indicating substantial incremental explanatory power. Because gender and functional diversity are estimated separately, this pattern is consistent with complementary rather than substitutive effects, though a combined model was not estimated. These results suggest that, in an emerging market such as Jordan, appointing more financially qualified and independent directors, together with modest increases in female representation, can materially improve reported-earnings reliability and should be prioritized in corporate governance reform.