Theses & Dissertations

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https://hdl.handle.net/20.500.14170/1590

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Browsing Theses & Dissertations by Subject "Accounting information"
  • Publication
    The moderating role of audit quality on the relationship between the value relevance of accounting information, ownership structures and share prices in the Amman stock exchange
    ( 2021)
    Mohammad Suleiman Ahmad Almashaqbeh
    There is little known about the role of accounting information in terms of its ability to explain changes to the security prices of listed companies on the Amman Stock Exchange (ASE). Almost all evidence in this area is obtained from the United States or Western European countries which have sophisticated markets compared to most developing countries. Hence, this study attempts to contribute to literature by investigating such relationship in Jordan, a developing country. Specifically, this study investigates the moderating role of audit quality on the relationship between the value relevance of accounting information, ownership structures and share prices in the ASE in Jordan for the year 2010 to 2018. The model of this study was theoretically founded on both the Agency and the Signaling Theories. To examine the developed model, the required data were gathered from the annual reports of 195 listed firms in the ASE. In analyzing the data, this study utilized the panel data methodology on 95 companies with 855 observations. Based on the panel data results, the fixed effects model and the random effects model were used to examine the effect of the value relevance of accounting information, ownership structure and audit quality on the share prices. The findings of the study indicate that the value relevance of accounting information have a significant effect on the share prices of the Jordanian companies listed on the ASE and that the earnings per share has a positive though non-significant effect on share prices, the book value has a negative and significant effect on share prices, the dividend per share has a negative though non-significant effect on share prices and the cash flow has a negative though non-significant effect on share prices. In addition, the ownership structure has a significant effect on the share prices of the Jordanian companies listed on the ASE and that foreign ownership has a positive though non-significant effect on share prices, institutional ownership has a positive and significant effect on share prices and concentration of ownership has a negative and significant effect on share prices. On the one hand, audit quality, audit firm size, audit tenure and audit fees has significant moderating effects on associations of the share prices with the value relevance of accounting information and ownership structure. Besides providing suggestions for future research work, this study provides deep insights into relative usefulness of the value relevance of accounting information, ownership structure and audit quality and assists investors, regulators, analysts, and other stakeholders in evaluating the share prices of Jordanian companies listed on the ASE, which may result in better allocation of economic resources by enabling the investors to take informed investment decisions, thus promoting a more efficient Jordanian capital market.
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