IFRS compliance and stock prices influence: evidence from Jordanian banks

Almasarwah, Adel; Omoush, Ahmad M.; Alsharari, Nizar Mohammad

doi:10.21511/bbs.13(3).2018.03

Cited by 6 publications

(4 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Figure 3 shows development in total and tax revenues for two non-resource groups (non-resource Maghreb and Mashreq) and three resource groups (resource Maghreb, GCC and OME). The levels and trajectories of total revenues for non-resource Maghreb and Mashreq have been broadly similar, but have diverged in recent years; in the Mashreq, revenues declined sharply across all constituent countries (Egypt, Jordan, Lebanon and presumably, Syria), by an average of about five percentage points of GDP (Harrigan, 2014; Mansour, 2015; Almasarwah et al , 2018). More significant, however, are the differences in tax revenues between these two groups: Maghreb countries tended to raise more than Mashreq countries – about 6.4 per cent points of GDP on average; and, moreover, Mashreq tax revenues were stagnant while those in the Maghreb increased between 2005 and 2012.…”

Section: The Discussion and Resultsmentioning

confidence: 99%

A comparative analysis of taxation and revenue trends in the Middle East and North Africa (MENA) region

Alsharari

2019

PAR

View full text Add to dashboard Cite

Purpose The purpose of this paper is to gain insight into how well past reforms have performed against revenue, equity and efficiency benchmarks of tax policymaking, so that the direction of future reform of tax system might be determined. It also presents a comparative analysis of taxation and revenue trends in the Middle East and North Africa (MENA) region over the data set period 1990-2012. Design/methodology/approach By overviewing the development and relative significance of resource revenues, allocating non-resource taxes and examining the tax policies of constituent countries, this paper presents a comparative review of taxation and revenue trends in the MENA region. Findings Findings showed, on average, a slight decline in non-resource revenues against the significant rise in income from resources. The analysis of government revenues and current taxation structures provide insight into how prior reforms have performed against the standard measures of tax policy-making (i.e. revenue, equity and efficiency) and directions for change leading to the establishment of simple tax systems. The study observes regional differences, such as the higher tax and revenues of the Maghreb sub-region over the Mashreq, except for value-added tax, where low rates were associated with equal or greater revenue. Similarities were also found, including the partial compensation by income taxes (not indirect taxes) for revenue lost through trade liberalization. The challenges of tax reform are found to vary across countries and opportunities for improving equity and reducing the complexity of tax systems across the region are identified. Research limitations/implications Reforms in all tax systems could have major implications for the country, employment, earnings and tax revenues; but recommendations would require political value judgments and government decisions. The study suggests eliminating the current tax system, thereby replacing one of the more distortionary taxes in the current system with a neutral and efficient tax. Originality/value The paper signals the need, even of the oil-rich states of the Gulf Cooperation Council, for governments to build tax systems capable of capturing and spending revenues effectively into the future.

show abstract

Section: The Discussion and Resultsmentioning

confidence: 99%

A comparative analysis of taxation and revenue trends in the Middle East and North Africa (MENA) region

Alsharari

2019

PAR

View full text Add to dashboard Cite

show abstract

“…Contrariwise, El-Diftar and Elkalla (2019) compare firms operating in the Gulf Cooperation Council (GCC) with non-GCC countries from the MENA region and conclude that IFRS adoption harms value relevance. In addition to traditional determinants, such as firms' reporting incentives, including ownership dynamics around IFRS adoption (Hessayri and Saihi, 2018), or the enforcement regime's functionality, Almasarwah et al (2018) offer an alternative explanation of divergent results, one associated with frequent regional political and economic turmoil.…”

Section: Value Relevance Of Ifrs In Saudi Arabiamentioning

confidence: 99%

Value relevance of accounting information in an emerging market: the case of IFRS adoption by non-financial listed firms in Saudi Arabia

Chehade

Procházka

2023

JAEE

View full text Add to dashboard Cite

PurposeThe paper aims to provide empirical evidence of the impact of IFRS adoption on the value relevance of accounting information in the emerging market of Saudi Arabia.Design/methodology/approachThe sample consists of 98 non-financial listed firms operating in Saudi Arabia from 2014 to 2019, representing the years before and after IFRS adoption. The authors apply basic and extended price models to examine the value relevance of select accounting figures.FindingsThe authors findings provide evidence that accounting information is, generally, value relevant to the Saudi Arabian capital market. However, mixed results exist for particular accounting variables. Both earnings and cash flows are value-relevant in the period before and after IFRS adoption; equity is only relevant in the post-adoption period. Furthermore, IFRS adoption also increases the explanatory power of earnings. An increase in the value relevance of earnings and equity hurts the value relevance of cash flows. The effects are moderated by leverage and dividend policy.Originality/valueThe authors contribute to the ongoing discussion of the economic effects of IFRS adoption in emerging markets. The empirical findings show that initial concerns about IFRS adoption, as reflected by the negative coefficient within the regression analysis, are mitigated once the usefulness of the individual accounting variables published in financial statements is investigated.

show abstract

“…With regard to the effect of the degree of compliance, a number of studies have been conducted to identify the effect of the degree of compliance with IFRS on certain variables, IJAIM 29,4 for example, the correlation between the level of compliance with the IFRS and the share prices of Jordanian banks (Almasarwah et al, 2018), the impact of the level of compliance with IFRS 7 on the performance of European banks (Carlo and Steck, 2011), the impact of risk disclosure on banks' credit ratings within the availability of governance structures as a mediator (Elamer et al, 2021) and risk disclosure practices in light of religious governance (quality of Islamic governance and quality of national governance) (Elamer et al, 2020a(Elamer et al, , 2020b. On the other hand, some studies have attempted to identify the factors affecting risk disclosure and found that one of the most important factors is corporate governance (Al-Hadi et al, 2016;Al-Hadi et al, 2019;Elamer et al, 2020aElamer et al, , 2020b.…”

Section: Literature Review 21 International Financial Reporting Standard and Cost Of Equity Capitalmentioning

confidence: 99%

The impact of financial instruments disclosures on the cost of equity capital

Hussainey

Albitar

2021

IJAIM

View full text Add to dashboard Cite

Purpose This study aims to investigate the impact of financial instrument disclosures under the International Financial Reporting Standard (IFRS) 7 on the cost of equity capital (COEC). Design/methodology/approach The sample consists of 56 banks listed in the Gulf cooperation council (GCC) stock markets over 7 years from 2011 to 2017. A self-constructed index is used to measure the compliance level in addition to quantitative methods and panel data regression adopted to test the research hypotheses. Findings The authors find that the compliance level with IFRS 7 does not improve from 2011 until 2017 in the GCC banks. The authors also find that compliance with IFRS 7 disclosures reduces the COEC. Originality/value The authors also provide new empirical evidence that the level of mandatory financial instruments disclosures under IFRS 7 reduces the COEC. The findings offer policy implications. It shows that compliance with IFRS 7 disclosure requirements leads to desirable economic consequences.

show abstract

IFRS compliance and stock prices influence: evidence from Jordanian banks

Cited by 6 publications

References 38 publications

A comparative analysis of taxation and revenue trends in the Middle East and North Africa (MENA) region

A comparative analysis of taxation and revenue trends in the Middle East and North Africa (MENA) region

Value relevance of accounting information in an emerging market: the case of IFRS adoption by non-financial listed firms in Saudi Arabia

The impact of financial instruments disclosures on the cost of equity capital

Contact Info

Product

Resources

About