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Transparency of Annual Corporate Reports’ Contents in Jordan: Is it questionable?

Author

Listed:
  • Fawzi Al Sawalqa

    (Tafila Technical University)

Abstract

Based on the perceptions of 94 individual investors at Amman Stock Exchange (ASE) toward the limitations and adequacy of annual reports, this paper seeks to investigate the extent of transparency of annual corporate reports’ contents. In line with a broad set of prior research in the field, the results of the study revealed that income statement, balance sheet and statement of retained earnings are the most important sections in annual corporate report. This means that individual investors put much emphasis on those sections that give short-term information, while those sections interested in long-term strategies were ignored. The result indicated that the standard annual corporate report in Jordan is not transparent enough, as it has many limitations and needs more information to be included in. For example, individual investors are lack of trust in information system, delay in publishing annual reports and lack of adequate information. In addition, individual investors are in need for further information to be disclosed in annual reports. The study recommends that new amended legislations should be achieved to overcome the limitations surrounding the reporting process in Jordanian as a whole.

Suggested Citation

  • Fawzi Al Sawalqa, 2013. "Transparency of Annual Corporate Reports’ Contents in Jordan: Is it questionable?," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(1), pages 409-417, January.
    • Handle: RePEc:hur:ijaraf:v:3:y:2013:i:1:p:409-417
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    References listed on IDEAS

    as
    1. Jasim Al-Ajmi, 2009. "Investors' use of corporate reports in Bahrain," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(3), pages 266-289, March.
    2. Al-Abdulqader, K.A. & Hannah, G. & Power, D.M., 2007. "The appraisal of ordinary shares by Saudi investors," Research in International Business and Finance, Elsevier, vol. 21(1), pages 69-86, January.
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    Cited by:

    1. Ala’ Hussein Albawwat & Mohamad Yazis Ali Basah, 2015. "The Impact of Shariah Approved Companies on the Relationship between Corporate Governance Structure and Voluntary Disclosure of Interim Financial Reporting in Jordan," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(2), pages 66-85, April.

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