The impact of surplus free cash flow and stock market segmentations on earnings management in Jordan: agency - and institutional - theory perspectives / Ahmad A. Toumeh, Sofri Yahya and Azlan Amran.

The current research aims at providing evidence concerning the influence of surplus free cash flow (SFCF) and stock market segmentations (SMS) on income-increasing earnings management practices in Jordan. The results, based on a sample of all non-financial companies that were listed on the Amman Stock Exchange (ASE) from 2013 to 2017, confirm the research hypotheses. The Huber-White’s sandwich standard errors for randomeffects regression was used as the primary statistical tool for this study. The findings revealed a significant and positive association between SFCF and income-boosting discretionary accruals (DAC). As well, the results found that SMS was significantly and positively associated with the positive DAC. This research adds value to scholarship by investigating the impact of SMS variable on earnings management. To the best available knowledge, this relationship has not been examined either in Jordan or elsewhere in the world. Further, this is the first empirical attempt to investigate the effect of SFCF on earnings management in Jordan, which provides meaningful information for companies seeking to understand and reduce agency problems within the Jordanian context

From tissue-specific to tissue-agnostic: HER2 overexpression and the rise of antibody-drug conjugates

The growing importance of HER2 expression as a biomarker across multiple cancers is largely driven by advances in HER2-directed antibody-drug conjugates. The recent approval of trastuzumab deruxtecan (T-DXd) as a tumor-agnostic therapy has revolutionized treatment strategies for HER2-overexpressed tumors beyond breast, gastric, and colorectal cancers (CRC). This mini-review explores the evolving role of assessing HER2 overexpression in pan-solid tumors, following the recent approval of T-DXd as a tumor-agnostic therapy. It examines how HER2 scoring criteria for pan-tumor indications rely on immunohistochemistry (IHC) assessment, which may be prone to subjective interpretation and interobserver variability, and how these criteria differ from those used in breast, gastric, and CRC tumors. We also address the potential for NGS approaches to identify ERBB2 copy number gain (CNG) and the utility of artificial intelligence (AI) algorithms to enhance the consistency and accuracy of HER2 score interpretation for T-DXd treatment eligibility in solid tumors

Clonal plasma cell features in light-chain amyloidosis are associated with depth and timing of cardiac response independent of hematologic response

Cardiac response (CarR) is associated with survival in AL amyloidosis, but substantial variation exists in response kinetics. We investigated variables associated with deep CarRs to characterize the factors that govern organ recovery. Retrospective study of newly-diagnosed AL amyloidosis patients (n=401) diagnosed between 2010-2022 and assessable for CarR. CarRs were recorded at 6, 12, 24-months and the best CarR. Deep CarR was defined as CarVGPR or better (>60% reduction in baseline NT-proBNP or ≤350 pg/mL). High-risk cytogenetic abnormalities (HRCAs) included del(17p), t (4;14), t(14;16), and t(14;20). Logistic and competing-risk regression (treating death as a competing event) were used to examine variables associated with CarR. The median age was 65-years, with a median follow-up of 5.5-years. At 6, 12, 24-month and best overall response landmarks, 12%, 24%, 33% and 45% of patients had obtained ≥CarVGPR, respectively. Baseline bone-marrow plasma-cells (BMPCs) ≥20%, obtaining ≥hemVGPR within 6-months, kappa isotype, HRCAs and ASCT were significantly associated with deep CarR on logistic regression and competing-risk analysis. In-line with their impact on CarR, ASCT, kappa isotype and deep HemR within 6-months were associated with improved overall survival (OS) on multivariable Cox proportional hazards modeling. Conversely, high BMPC burden and the presence of HRCAs had no association with OS on adjusted analysis. As this cohort was retrospectively selected for CarR assessment, these results need to be interpreted accordingly. Nonetheless, the association between a ‘myeloma phenotype’ and CarR kinetics, endorses the role of direct light-chain toxicity and suggests that clonal plasma-cell features significantly influence organ response in AL amyloidosis

Assessing the potential integration of large language models in accounting practices: evidence from an emerging economy

Abstract This research intends to demonstrate the potential integration of large language models (LLMs) in accounting practices in Jordan. It is a mixed methods study that employs semi-structured interviews and content analysis of published financial reports. A total of 13 semi-structured interviews are conducted with various accounting professionals, such as accountant, financial analyst, financial controller, auditor, tax consultant, and finance manager. In addition, the study includes a thorough content analysis of financial reports, which reveals a compelling pattern highlighting the distinct narrative content richness prevalent across financial, industrial, and service sectors. The results emphasize the need for sector-specific adaptation, suggesting a paradigm shift in financial reporting practices. This study represents the initial empirical exploration in Jordan. It serves as a bridge between theory and application, offering both theoretical insights and practical guidance for accounting professionals. Ultimately, the study envisions a future where LLMs significantly enrich financial reporting practices across diverse sectors

The Impact of Surplus Free Cash Flow and Stock Market Segmentations on Earnings Management in Jordan: Agency - and Institutional - Theory Perspectives

The current research aims at providing evidence concerning the influence of surplus free cash flow (SFCF) and stock market segmentations (SMS) on income-increasing earnings management practices in Jordan. The results, based on a sample of all non-financial companies that were listed on the Amman Stock Exchange (ASE) from 2013 to 2017, confirm the research hypotheses. The Huber-White’s sandwich standard errors for randomeffects regression was used as the primary statistical tool for this study. The findings revealed a significant and positive association between SFCF and income-boosting discretionary accruals (DAC). As well, the results found that SMS was significantly and positively associated with the positive DAC. This research adds value to scholarship by investigating the impact of SMS variable on earnings management. To the best available knowledge, this relationship has not been examined either in Jordan or elsewhere in the world. Further, this is the first empirical attempt to investigate the effect of SFCF on earnings management in Jordan, which provides meaningful information for companies seeking to understand and reduce agency problems within the Jordanian context. KEYWORDS: Earnings management; DAC; surplus free cash flow; SFCF; stock market segmentations; SMS; agency theory; institutional theory; Jordan.</jats:p

Innovative approaches to accounting education: incorporating business intelligence tools

This study explores innovative approaches to accounting education by incorporating business intelligence (BI) tools. With the rapid advancement of technology and increasing complexity of business operations, traditional accounting education methods are being challenged to keep pace with industry demands. A total of 395 questionnaires were distributed to professional accountants and academic staff members. Data analysis entailed both descriptive and inferential statistics. The analysis revealed distinct insights into the perceptions of incorporating BI tools into accounting curricula. Integration of BI tools in accounting education assures transformative effects, as highlighted by positive responses regarding curriculum adaptation, skills, and competencies as well as career transformation. Furthermore, discrepancies between academics and professionals in research focus confirm the need for further investigation into BI-based accounting. This study shows the significance of BI tools in accounting education for academics, highlighting the need to update curricula to incorporate these advancements. This emphasizes the pivotal role that BI technology plays in advancing accounting practices. Consequently, teaching methods and course materials should evolve to enhance students’ skills and increase their employability, thereby contributing to a more competitive workforce

Surplus Free Cash Flow, Stock Market Segmentations and Earnings Management: The Moderating Role of Independent Audit Committee

Management engages in earnings manipulation for different reasons. This article argues that low-growth firms with high free cash flow will opt for income-increasing earnings management in order to obscure the low profits derived from their investments in negative net present value (NPV) projects. On the other hand, we argue that the listed companies might be interested in being listed in the first market due to its privileges and to preserve the competitiveness, through managing their earnings upwardly, so that they can satisfy the condition of achieving a particular earnings limit. This article should advance the body of earnings management literature in the Jordanian context by examining the effect of the moderating role of an independent audit committee (IAC) in the association between surplus free cash flow (SFCF) and income-increasing discretionary accruals (DAC). Further, this is the initial empirical attempt to investigate the moderation effect of IAC between stock market segmentations (SMS) and positive DAC. The results of this current study offer original and beneficial information for the Jordanian government and other countries with a similar institutional environment because the study promotes the application of applying IAC as an efficient tool to constrain management behaviour towards manipulation of the accruals. On top of that, this research offers information concerning the prevailing situation of earnings management practices and corporate governance in Jordan, in which shareholders, local and international investors, policymakers, regulators and academic researchers are interested. Finally, panel data analyses and various statistical techniques are employed to derive conclusions.</jats:p