UTJEČE LI KVALITETA REVIZIJE NA USPJEŠNOST PODUZEĆA? DOKAZI S TRŽIŠTA U RAZVOJU

The purpose of this research is to look into the impact of audit quality on company performance. It offers empirical evidence from the Jordanian market, which is considered an emerging market. In this study, audit quality is proxied by auditor tenure, auditor industry specialization, and auditor firm size, while company performance is proxied by ROA, ROE, and EPS. A panel data analysis of all Jordanian industrial public shareholding companies listed on the Amman Stock Exchange during the timeframe (2012 to 2017) is used in this study. The primary findings are that auditor tenure has a negative influence on ROA, but auditor industry specialization and auditor firm size have no influence on ROA. Auditor firm size has a positive influence on both ROE and EPS, but auditor tenure and auditor industry specialization have a non-significant negative influence on both ROE and EPS. According to these results, companies in emerging markets should be encouraged to overcome the barriers that limit the link between audit quality and company performance. The study also suggests more research on the impact of audit quality on information asymmetry and earnings management. Future study might potentially identify characteristics that influence audit quality, particularly in emerging countries (such as MENA countries), where there has been little effort to explore the level of audit quality and its relationship with other factors.Svrha ovog istraživanja je istražiti utjecaj kvalitete revizije na uspješnost poduzeća. Ono nudi empirijske dokaze s jordanskog tržišta, koje se smatra tržištem u razvoju. U ovom istraživanju, kvaliteta revizije je aproksimirana pomoću duljina revizorskog mandata, specijalizacije revizorske industrije i veličine revizorskog poduzeća, dok je uspješnost poduzeća aproksimirana pomoću ROA, ROE i EPS. U ovom istraživanju korištena je analiza panel podataka svih jordanskih industrijskih javnih dioničarskih društava koja su kotirala na Ammanskoj burzi tijekom vremenskog okvira (2012. do 2017.). Primarni nalazi su da duljina revizorskog mandata ima negativni utjecaj na ROA, dok specijalizacija revizorske industrije i veličina revizorskog poduzeća nemaju utjecaj na ROA. Veličina revizorskog poduzeća ima pozitivan utjecaj i na ROE i na EPS, dok duljina revizorskog mandata i specijalizacija revizorske industrije nemaju značajan negativan utjecaj ni na ROE ni na EPS. Prema ovim rezultatima, poduzeća na tržištima u razvoju treba poticati da prevladaju prepreke koje ograničavaju vezu između kvalitete revizije i uspješnosti poduzeća. Istraživanje također predlaže dodatna istraživanja o utjecaju kvalitete revizije na asimetriju informacija i upravljanje zaradom. Buduća bi istraživanja mogla potencijalno identificirati karakteristike koje utječu na kvalitetu revizije, posebno u zemljama u razvoju (kao što su zemlje MENA), gdje je postojalo malo napora da se istraži razina kvalitete revizije i njezin odnos s drugim čimbenicima

Internal corporate governance mechanisms and earnings manipulation practices in MENA countries

This study has the objective of examining how internal corporate governancemechanisms are related to earnings manipulation,measured by real-based earnings manipulation (REM) and accrual-based earnings manipulation (AEM). The internal corporate governance mechanisms discussed in this study signify two main kinds of board characteristics (board size and board independence) and three main kinds of ownership structure (institutional ownership, foreign ownership and business group affiliation). The study models were examined from eight countries selected from the Middle East and North Africa (MENA) region. A total of 480 non-financial firms listed between 2012 and 2019 were examined. Based on panel data-based generalised methods of moments (GMM) estimation, the findings showed that institutional ownership in MENA nations limits the use of REM and AEM. Additionally, we found that larger boards are more likely to participate in REM practices. Board independence has a positive association with REM and AEM. The results also reveal that business group affiliation has a significant effect on both methods of earnings manipulation. Foreign ownership does not seem to significantly impact either of the two manipulation methods. Finally, these results help regulators and policymakers pursue reforms to enhance national governance quality in the MENA region

Responsibility Accounting, Target Costing And Business Performance: The Role Of Risk Management As Mediator

The crises that affected Jordanian business environment were a wake-up call for its financial institutions sparking concern on the issues of risk and performance. In Jordan, various instructions and circulars have been issued by the Central Bank of Jordan as part of the government‘s initiative to ensure good control and performance, causing the financial institutions to give more serious attention towards their management accounting and risk management practices. The present study focuses on two prominent management accounting practices i.e. responsibility accounting and target costing

Determinants of Market Stock Price: New Evidence from an Emerging Market

The current studys goal is to investigate the financial determinants of the market stock price in Jordan, which is an emerging market. It gives empirical evidence from the industrial companies listed on the Amman Stock Exchange. This research was carried out over nine years (2010-2018), with a panel data analysis of 57 industrial companies used during the period. The study sample consists of all of the companies in the population, for a total of 513 observations. In conclusion, the findings of the study reveal that the ratio of assets turnover, long-term debt-to-total assets ratio, earnings per share, return on assets, inventory-to-total current assets ratio, total current assets-to-total assets ratio, and total assets significantly affect the market stock price of Jordanian industrial companies; while the equity-to-total assets ratio and working capital ratio have no significant effect. These results are compatible with the pecking order theory and signalling theory. Besides, the shift in the market stock prices of Jordanian industrial companies is governed by financial indicators at a relatively high level. As a final point, these results can be used by financial analysts, investors, and other strategic decision-makers to boost the effectiveness and efficiency of the Jordanian financial market

Determinants of Market Stock Price: New Evidence from an Emerging Market

The current studys goal is to investigate the financial determinants of the market stock price in Jordan, which is an emerging market. It gives empirical evidence from the industrial companies listed on the Amman Stock Exchange. This research was carried out over nine years (2010-2018), with a panel data analysis of 57 industrial companies used during the period. The study sample consists of all of the companies in the population, for a total of 513 observations. In conclusion, the findings of the study reveal that the ratio of assets turnover, long-term debt-to-total assets ratio, earnings per share, return on assets, inventory-to-total current assets ratio, total current assets-to-total assets ratio, and total assets significantly affect the market stock price of Jordanian industrial companies; while the equity-to-total assets ratio and working capital ratio have no significant effect. These results are compatible with the pecking order theory and signalling theory. Besides, the shift in the market stock prices of Jordanian industrial companies is governed by financial indicators at a relatively high level. As a final point, these results can be used by financial analysts, investors, and other strategic decision-makers to boost the effectiveness and efficiency of the Jordanian financial market

Direct and mediated associations among audit quality, earnings quality, and share price : the case of Jordan

Purpose: The current study aims to investigate the relationship between audit quality and the share price in Jordan as a developing market. Moreover, it also uses the role of earnings quality as a mediator factor in the study model. Design/Approach/Methodology: The study sample is comprised of all Jordanian industrial public shareholding companies listed in Amman Stock Exchange during the years 2010 to 2018. Therefore, this study uses a panel data analysis on financial disclosures. Findings: The study concluded that a high audit quality and a high earnings quality separately increase the share price. The earnings quality partially mediates the relationship between audit quality and the share price. It was also found that a high audit quality does not improve earnings quality of the targeted companies. Practical Implication: The findings can be used in efforts to: (i) identify the level of Jordanian market control over audit quality and earnings quality with evidence; (ii) provide more explanations on the importance of audit quality and quality of financial information in the biasness environment; (iii) the results of the this study will be more important for the investors, management, decisions makers, policy makers, and other interested parties; (iv) the findings of the study help the policy makers to adopt good regulations to improve the transparency in reporting the financial information that affects the share price. Originality/Value: The study is an original study and it adds to scholarly debate on effect of audit quality and earnings quality on the share price in Jordan as a developing market. It also uses the role of earnings quality as a mediator factor in the relationship between audit quality and the share price.peer-reviewe

Global age-sex-specific mortality, life expectancy, and population estimates in 204 countries and territories and 811 subnational locations, 1950–2021, and the impact of the COVID-19 pandemic: a comprehensive demographic analysis for the Global Burden of Disease Study 2021

BackgroundEstimates of demographic metrics are crucial to assess levels and trends of population health outcomes. The profound impact of the COVID-19 pandemic on populations worldwide has underscored the need for timely estimates to understand this unprecedented event within the context of long-term population health trends. The Global Burden of Diseases, Injuries, and Risk Factors Study (GBD) 2021 provides new demographic estimates for 204 countries and territories and 811 additional subnational locations from 1950 to 2021, with a particular emphasis on changes in mortality and life expectancy that occurred during the 2020–21 COVID-19 pandemic period.Methods22 223 data sources from vital registration, sample registration, surveys, censuses, and other sources were used to estimate mortality, with a subset of these sources used exclusively to estimate excess mortality due to the COVID-19 pandemic. 2026 data sources were used for population estimation. Additional sources were used to estimate migration; the effects of the HIV epidemic; and demographic discontinuities due to conflicts, famines, natural disasters, and pandemics, which are used as inputs for estimating mortality and population. Spatiotemporal Gaussian process regression (ST-GPR) was used to generate under-5 mortality rates, which synthesised 30 763 location-years of vital registration and sample registration data, 1365 surveys and censuses, and 80 other sources. ST-GPR was also used to estimate adult mortality (between ages 15 and 59 years) based on information from 31 642 location-years of vital registration and sample registration data, 355 surveys and censuses, and 24 other sources. Estimates of child and adult mortality rates were then used to generate life tables with a relational model life table system. For countries with large HIV epidemics, life tables were adjusted using independent estimates of HIV-specific mortality generated via an epidemiological analysis of HIV prevalence surveys, antenatal clinic serosurveillance, and other data sources. Excess mortality due to the COVID-19 pandemic in 2020 and 2021 was determined by subtracting observed all-cause mortality (adjusted for late registration and mortality anomalies) from the mortality expected in the absence of the pandemic. Expected mortality was calculated based on historical trends using an ensemble of models. In location-years where all-cause mortality data were unavailable, we estimated excess mortality rates using a regression model with covariates pertaining to the pandemic. Population size was computed using a Bayesian hierarchical cohort component model. Life expectancy was calculated using age-specific mortality rates and standard demographic methods. Uncertainty intervals (UIs) were calculated for every metric using the 25th and 975th ordered values from a 1000-draw posterior distribution.FindingsGlobal all-cause mortality followed two distinct patterns over the study period: age-standardised mortality rates declined between 1950 and 2019 (a 62·8% [95% UI 60·5–65·1] decline), and increased during the COVID-19 pandemic period (2020–21; 5·1% [0·9–9·6] increase). In contrast with the overall reverse in mortality trends during the pandemic period, child mortality continued to decline, with 4·66 million (3·98–5·50) global deaths in children younger than 5 years in 2021 compared with 5·21 million (4·50–6·01) in 2019. An estimated 131 million (126–137) people died globally from all causes in 2020 and 2021 combined, of which 15·9 million (14·7–17·2) were due to the COVID-19 pandemic (measured by excess mortality, which includes deaths directly due to SARS-CoV-2 infection and those indirectly due to other social, economic, or behavioural changes associated with the pandemic). Excess mortality rates exceeded 150 deaths per 100 000 population during at least one year of the pandemic in 80 countries and territories, whereas 20 nations had a negative excess mortality rate in 2020 or 2021, indicating that all-cause mortality in these countries was lower during the pandemic than expected based on historical trends. Between 1950 and 2021, global life expectancy at birth increased by 22·7 years (20·8–24·8), from 49·0 years (46·7–51·3) to 71·7 years (70·9–72·5). Global life expectancy at birth declined by 1·6 years (1·0–2·2) between 2019 and 2021, reversing historical trends. An increase in life expectancy was only observed in 32 (15·7%) of 204 countries and territories between 2019 and 2021. The global population reached 7·89 billion (7·67–8·13) people in 2021, by which time 56 of 204 countries and territories had peaked and subsequently populations have declined. The largest proportion of population growth between 2020 and 2021 was in sub-Saharan Africa (39·5% [28·4–52·7]) and south Asia (26·3% [9·0–44·7]). From 2000 to 2021, the ratio of the population aged 65 years and older to the population aged younger than 15 years increased in 188 (92·2%) of 204 nations.InterpretationGlobal adult mortality rates markedly increased during the COVID-19 pandemic in 2020 and 2021, reversing past decreasing trends, while child mortality rates continued to decline, albeit more slowly than in earlier years. Although COVID-19 had a substantial impact on many demographic indicators during the first 2 years of the pandemic, overall global health progress over the 72 years evaluated has been profound, with considerable improvements in mortality and life expectancy. Additionally, we observed a deceleration of global population growth since 2017, despite steady or increasing growth in lower-income countries, combined with a continued global shift of population age structures towards older ages. These demographic changes will likely present future challenges to health systems, economies, and societies. The comprehensive demographic estimates reported here will enable researchers, policy makers, health practitioners, and other key stakeholders to better understand and address the profound changes that have occurred in the global health landscape following the first 2 years of the COVID-19 pandemic, and longer-term trends beyond the pandemic