The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector

Odai Haitham AlJaloudi

doi:doi:10.11648/j.jfa.20180603.12

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The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector

Odai Haitham AlJaloudi

Published in Journal of Finance and Accounting (Volume 6, Issue 3)

Received: 28 August 2018 Accepted: 10 September 2018 Published: 9 October 2018

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Abstract

Reporting quality considered to be a significant factor of the Financial Accounting Standard Board (FASB), while accounting conservatism is a serious constraint that linked to the main criteria of the accounting information. In this study, an investigation of the impact of conservatism policy on the reporting quality of banks in Jordan has been carried out. For this purpose, data is collected for 15 Jordanian banks listed on the official website of the Amman Stock Exchange for a total duration of 10 years from 2008-2017. Initially, it is examined whether the selected banks practice conservatism or not and then the variable is operationalized in terms of a categorical variable having two main categories of conservatism and non-conservatism. Similar the reporting quality is also a qualitative variable that is operationalized as a binary variable using the extent of disclosed information in financial statements as a proxy for reporting quality, like financial reports containing detailed information in the form of notes are considered as providing quality information having a value of 1 and 0 otherwise. The binary logistic regression method is adopted in this study as a quantitative technique for data analysis which expresses the impact of the independent variable on the dependent variable in form of the odds ratio. The study findings show that Jordanian banks most of the time implement conservatism policy and it significantly influences their reporting quality. Moreover, it has been found that Jordanian banks practice accounting conservatism while disclosing their financial information and such conservatism practice has a positive impact on their reporting quality.

Published in	Journal of Finance and Accounting (Volume 6, Issue 3)
DOI	10.11648/j.jfa.20180603.12
Page(s)	91-95
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Conservatism Policy, Reporting Quality, Financial Information, Jordanian Banks

References

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APA Style

Odai Haitham AlJaloudi. (2018). The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector. Journal of Finance and Accounting, 6(3), 91-95. https://doi.org/10.11648/j.jfa.20180603.12

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Odai Haitham AlJaloudi. The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector. J. Finance Account. 2018, 6(3), 91-95. doi: 10.11648/j.jfa.20180603.12

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AMA Style

Odai Haitham AlJaloudi. The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector. J Finance Account. 2018;6(3):91-95. doi: 10.11648/j.jfa.20180603.12

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@article{10.11648/j.jfa.20180603.12,
  author = {Odai Haitham AlJaloudi},
  title = {The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector},
  journal = {Journal of Finance and Accounting},
  volume = {6},
  number = {3},
  pages = {91-95},
  doi = {10.11648/j.jfa.20180603.12},
  url = {https://doi.org/10.11648/j.jfa.20180603.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20180603.12},
  abstract = {Reporting quality considered to be a significant factor of the Financial Accounting Standard Board (FASB), while accounting conservatism is a serious constraint that linked to the main criteria of the accounting information. In this study, an investigation of the impact of conservatism policy on the reporting quality of banks in Jordan has been carried out. For this purpose, data is collected for 15 Jordanian banks listed on the official website of the Amman Stock Exchange for a total duration of 10 years from 2008-2017. Initially, it is examined whether the selected banks practice conservatism or not and then the variable is operationalized in terms of a categorical variable having two main categories of conservatism and non-conservatism. Similar the reporting quality is also a qualitative variable that is operationalized as a binary variable using the extent of disclosed information in financial statements as a proxy for reporting quality, like financial reports containing detailed information in the form of notes are considered as providing quality information having a value of 1 and 0 otherwise. The binary logistic regression method is adopted in this study as a quantitative technique for data analysis which expresses the impact of the independent variable on the dependent variable in form of the odds ratio. The study findings show that Jordanian banks most of the time implement conservatism policy and it significantly influences their reporting quality. Moreover, it has been found that Jordanian banks practice accounting conservatism while disclosing their financial information and such conservatism practice has a positive impact on their reporting quality.},
 year = {2018}
}

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TY  - JOUR
T1  - The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector
AU  - Odai Haitham AlJaloudi
Y1  - 2018/10/09
PY  - 2018
N1  - https://doi.org/10.11648/j.jfa.20180603.12
DO  - 10.11648/j.jfa.20180603.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 91
EP  - 95
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20180603.12
AB  - Reporting quality considered to be a significant factor of the Financial Accounting Standard Board (FASB), while accounting conservatism is a serious constraint that linked to the main criteria of the accounting information. In this study, an investigation of the impact of conservatism policy on the reporting quality of banks in Jordan has been carried out. For this purpose, data is collected for 15 Jordanian banks listed on the official website of the Amman Stock Exchange for a total duration of 10 years from 2008-2017. Initially, it is examined whether the selected banks practice conservatism or not and then the variable is operationalized in terms of a categorical variable having two main categories of conservatism and non-conservatism. Similar the reporting quality is also a qualitative variable that is operationalized as a binary variable using the extent of disclosed information in financial statements as a proxy for reporting quality, like financial reports containing detailed information in the form of notes are considered as providing quality information having a value of 1 and 0 otherwise. The binary logistic regression method is adopted in this study as a quantitative technique for data analysis which expresses the impact of the independent variable on the dependent variable in form of the odds ratio. The study findings show that Jordanian banks most of the time implement conservatism policy and it significantly influences their reporting quality. Moreover, it has been found that Jordanian banks practice accounting conservatism while disclosing their financial information and such conservatism practice has a positive impact on their reporting quality.
VL  - 6
IS  - 3
ER  -

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Author Information

Odai Haitham AlJaloudi

Department of Accounting and AIS, Al Balqa Applied University, Al Balqa, Jordan

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Plain Text BibTeX RIS

APA Style

Odai Haitham AlJaloudi. (2018). The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector. Journal of Finance and Accounting, 6(3), 91-95. https://doi.org/10.11648/j.jfa.20180603.12

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ACS Style

Odai Haitham AlJaloudi. The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector. J. Finance Account. 2018, 6(3), 91-95. doi: 10.11648/j.jfa.20180603.12

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AMA Style

Odai Haitham AlJaloudi. The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector. J Finance Account. 2018;6(3):91-95. doi: 10.11648/j.jfa.20180603.12

Copy | Download

@article{10.11648/j.jfa.20180603.12,
  author = {Odai Haitham AlJaloudi},
  title = {The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector},
  journal = {Journal of Finance and Accounting},
  volume = {6},
  number = {3},
  pages = {91-95},
  doi = {10.11648/j.jfa.20180603.12},
  url = {https://doi.org/10.11648/j.jfa.20180603.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20180603.12},
  abstract = {Reporting quality considered to be a significant factor of the Financial Accounting Standard Board (FASB), while accounting conservatism is a serious constraint that linked to the main criteria of the accounting information. In this study, an investigation of the impact of conservatism policy on the reporting quality of banks in Jordan has been carried out. For this purpose, data is collected for 15 Jordanian banks listed on the official website of the Amman Stock Exchange for a total duration of 10 years from 2008-2017. Initially, it is examined whether the selected banks practice conservatism or not and then the variable is operationalized in terms of a categorical variable having two main categories of conservatism and non-conservatism. Similar the reporting quality is also a qualitative variable that is operationalized as a binary variable using the extent of disclosed information in financial statements as a proxy for reporting quality, like financial reports containing detailed information in the form of notes are considered as providing quality information having a value of 1 and 0 otherwise. The binary logistic regression method is adopted in this study as a quantitative technique for data analysis which expresses the impact of the independent variable on the dependent variable in form of the odds ratio. The study findings show that Jordanian banks most of the time implement conservatism policy and it significantly influences their reporting quality. Moreover, it has been found that Jordanian banks practice accounting conservatism while disclosing their financial information and such conservatism practice has a positive impact on their reporting quality.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - The Impact of Conservatism Policy on Reporting Quality in Jordanian Banks Sector
AU  - Odai Haitham AlJaloudi
Y1  - 2018/10/09
PY  - 2018
N1  - https://doi.org/10.11648/j.jfa.20180603.12
DO  - 10.11648/j.jfa.20180603.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 91
EP  - 95
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20180603.12
AB  - Reporting quality considered to be a significant factor of the Financial Accounting Standard Board (FASB), while accounting conservatism is a serious constraint that linked to the main criteria of the accounting information. In this study, an investigation of the impact of conservatism policy on the reporting quality of banks in Jordan has been carried out. For this purpose, data is collected for 15 Jordanian banks listed on the official website of the Amman Stock Exchange for a total duration of 10 years from 2008-2017. Initially, it is examined whether the selected banks practice conservatism or not and then the variable is operationalized in terms of a categorical variable having two main categories of conservatism and non-conservatism. Similar the reporting quality is also a qualitative variable that is operationalized as a binary variable using the extent of disclosed information in financial statements as a proxy for reporting quality, like financial reports containing detailed information in the form of notes are considered as providing quality information having a value of 1 and 0 otherwise. The binary logistic regression method is adopted in this study as a quantitative technique for data analysis which expresses the impact of the independent variable on the dependent variable in form of the odds ratio. The study findings show that Jordanian banks most of the time implement conservatism policy and it significantly influences their reporting quality. Moreover, it has been found that Jordanian banks practice accounting conservatism while disclosing their financial information and such conservatism practice has a positive impact on their reporting quality.
VL  - 6
IS  - 3
ER  -

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