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Original Research

THE EFFECT OF OWNERSHIP STRUCTURE ON VOLUNTARY DISCLOSURE OF ANNUAL FINANCIAL REPORTS IN JORDAN COMPANIES

AMMAR ALMANSOUR 1, ALA HUSSEIN ALBAWWAT 2, BORHAN AL-DALAIEN 3, AHMAD ALBLOUSH 4, ALMONTASER QADORAH 5, MO’TAZ AL ZOBI 6, and BILAL ZUREIGAT 7.

Vol 17, No 08 ( 2022 )   |  DOI: 10.5281/zenodo.6969109   |   Author Affiliation: Faculty of Business, Accounting Department, Amman Arab University (AAU), Amman 11953, Jordan 1,2,3,4,5,6,7.   |   Licensing: CC 4.0   |   Pg no: 442-457   |   To cite: AMMAR ALMANSOUR, et al., (2022). THE EFFECT OF OWNERSHIP STRUCTURE ON VOLUNTARY DISCLOSURE OF ANNUAL FINANCIAL REPORTS IN JORDAN COMPANIES. 17(08), 442–457. https://doi.org/10.5281/zenodo.6969109   |   Published on: 06-08-2022

Abstract

The purpose of this study is to investigate the effect of ownership structure on the level of voluntary disclosure by some chosen non-financial companies in Amman Stock Exchange (ASE). A total period of 10 years reports was considered annually between "2010- 2020" and the OLS-regression model was made to test study predictions in this research. The analysed data indicated a negative significant difference of voluntary disclosure level on the block holder ownership and managerial ownership which well-matched to the study predictions and some other related studies conducted in the past. The model further revealed a positive connectivity on both the companies’ performance and proportion of institutional investor ownership. Furthermore, the regulators and policymakers have significant roles to play to the success of any institutional settings as the duo was seen to improve better the quality of financial disclosures with improved transparency level of financial reports among companies in Jordan. It was however concluded that, this study remains relevant in exposing the potentials of ownership structure of a company in improving voluntary disclosure with the tendency of promoting the interest of potential investors and better transparency.


Keywords

Ownership Structure, Voluntary Disclosure, Annual Reports, Amman Stock Exchange