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Corporate governance and voluntary disclosure of sustainability performance: the case of Jordan

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  • Hamzeh Al Amosh

    (Ministry of Education and Higher Education Qatar)

  • Saleh F. A. Khatib

    (Universiti Teknologi Malaysia)

Abstract

Non-financial information is subject to development based on the expectations of stakeholders. As the financial information alone no longer satisfies their desires, this has contributed to improving the phenomenon of disclosure for many countries, especially in issues related to sustainability. In Jordan, disclosure practices are still emerging and voluntary. This study, therefore, investigates the level of environmental, social, and governance (ESG) disclosure in the published annual reports of industrial companies listed on the Amman Stock Exchange and examines several factors related to corporate governance mechanisms and their impact on the level of disclosure. The current study used content analysis to determine the level of disclosure. The results showed that the level of disclosure on ESG performance is still weak. Still, it is developing over time in response to the pressure of stakeholders. The results also revealed a significant impact of the board size and board meetings on the ESG performance. In contrast, the results were disappointing concerning the rest of the proposed factors (non-executive directors, audit committee, auditor type, and board compensation). It did not play any role in explaining the practices of companies in the disclosure of ESG. The case study results help shed light on the interaction of the Jordanian industrial companies listed on sustainability issues. They are considered of interest to various stakeholders, regulators, and relevant government agencies and provide recent evidence of disclosure literature in emerging countries.

Suggested Citation

  • Hamzeh Al Amosh & Saleh F. A. Khatib, 2021. "Corporate governance and voluntary disclosure of sustainability performance: the case of Jordan," SN Business & Economics, Springer, vol. 1(12), pages 1-22, December.
    • Handle: RePEc:spr:snbeco:v:1:y:2021:i:12:d:10.1007_s43546-021-00167-1
    DOI: 10.1007/s43546-021-00167-1
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    Cited by:

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    2. Rezvan Pourmansouri & Amir Mehdiabadi & Vahid Shahabi & Cristi Spulbar & Ramona Birau, 2022. "An Investigation of the Link between Major Shareholders’ Behavior and Corporate Governance Performance before and after the COVID-19 Pandemic: A Case Study of the Companies Listed on the Iranian Stock," JRFM, MDPI, vol. 15(5), pages 1-30, April.
    3. Remo-Diez, Nieves & Mendaña-Cuervo, Cristina & Arenas-Parra, Mar, 2023. "Exploring the asymmetric impact of sustainability reporting on financial performance in the utilities sector: A longitudinal comparative analysis," Utilities Policy, Elsevier, vol. 84(C).
    4. Saddam A. Hazaea & Ebrahim Mohammed Al-Matari & Khaled Zedan & Saleh F. A. Khatib & Jinyu Zhu & Hamzeh Al Amosh, 2022. "Green Purchasing: Past, Present and Future," Sustainability, MDPI, vol. 14(9), pages 1-28, April.
    5. Hamzeh Al Amosh & Saleh F. A. Khatib & Khaled Hussainey, 2022. "The Financial Determinants of Integrated Reporting Disclosure by Jordanian Companies," JRFM, MDPI, vol. 15(9), pages 1-20, August.
    6. Saleh F.A. Khatib & Hamzeh Al Amosh, 2024. "Corporate Governance, Management Environmental Training, and Carbon Performance: The UK Evidence," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 14787-14809, September.
    7. Ping Chen & Peili Yu, 2024. "Research on the impact of knowledge flow in the new energy vehicle industry alliance on technology commercialization," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23909-23935, September.
    8. Saleh F. A. Khatib & Hamzeh Al Amosh & Husam Ananzeh, 2023. "Board Compensation in Financial Sectors: A Systematic Review of Twenty-Four Years of Research," IJFS, MDPI, vol. 11(3), pages 1-22, July.

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