Effectiveness of the board of directors' performance in Jordan: The moderating effect of enterprise risk management

Abstract

This study aims to investigate the moderating effect of enterprise risk management on the relationship between the board of directors’ effectiveness on accounting and market performance in Jordan. The current study uses panel data of 684 firm-year observations, employed regression analysis and analysis of annual reports of 76 listed companies on the Amman stock exchange (ASE) from 2009 to 2017 covering 9 years. The findings of the hierarchical regression analysis showed that the enterprise risk management has a significant positive moderating effect on the relationship between the board of directors’ effectiveness on accounting and market performance in Jordan. The findings reveal that enterprise risk management positively moderated the relationship between board of directors’ effectiveness on Return on Assets, Return on Equity, and Tobin’s Q. It also moderated the interaction of board of directors’ effectiveness intercept enterprise risk management on Return on Assets and Return on Equity, which were found positive and significant. The findings of this paper can provide crucial conclusions and recommendations that clarify the relationship between the board of directors’ effectiveness and the accounting and market performance in Jordan and the moderate impact of the enterprise risk management.

The influence of big data analytics technological capabilities and strategic agility on performance of private higher education institutions

“…The finding is consistent with research conducted by Arnold et al . (2015) and Sakrabani and Teoh (2020) who also confirmed the moderating effect of ERM on firm performance and market performance (Shatnawi et al ., 2022). A practice of ERM by PHEIs in identifying treats and opportunities will enhance SA of PHEIs in making decisions, creating a competitive advantage to achieve success.…”

“…PHEIs' performance firm performance and market performance (Shatnawi et al, 2022). A practice of ERM by PHEIs in identifying treats and opportunities will enhance SA of PHEIs in making decisions, creating a competitive advantage to achieve success.…”

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