Is there an impact of COVID-19 on the returns of the Amman Stock Exchange?

Kharabsheh, Buthiena; Gharaibeh, Omar; Mahafza, Aseel

doi:10.21511/imfi.19(2).2022.03

Cited by 8 publications

(8 citation statements)

References 33 publications

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“…COVID-19 proved devastating to the little Jordanian economy. The "World Bank (WB)" predicted a 1.5% drop in Jordan's GDP by the third quarter of 2020 due to losses in the tourism industry, according to information provided by the ASE (Kharabsheh et al, 2022). Al-Qadasi et al's (2022) study supports this idea by showing that audit fees, both regular and irregular, increased significantly in developing nations after the outbreak.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…Most importantly, in the fifth place, COVID-19 destroyed the meagre Jordanian economy. According to a report from the Amman Stock Exchange (ASE) in 2020, the “World Bank (WB)” predicted that Jordan’s gross domestic product (GDP) would decrease by 1.5% by the third quarter due to a drop in tourism (Kharabsheh et al , 2022). The next part of this examination looks at how the crisis influenced audit standards in Jordan.…”

Section: Introductionmentioning

confidence: 99%

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Key audit matters and auditing quality in the era of COVID-19 pandemic: the case of Jordan

Alharasis,

Alkhwaldi,

Hussainey

2024

IJLMA

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Purpose This study aims to investigate the moderating effect of the COVID-19 epidemic on the relationship between key audit matter (KAM) and auditing quality. Design/methodology/approach The authors use the ordinary least squares regression on data from 942 firm-year observations of Jordanian non-financial institutions across the period (2017–2022) to test the hypotheses. The authors use content analysis method to measure levels of KAM disclosure. Findings The investigation’s findings highlight the importance of KAM disclosure in achieving audit quality in line with international standard on auditing no. 701 (ISA-701) requirements. COVID-19 is also found to have a positive relationship with audit quality, further confirming the crisis’s devastating impact on audit complexity and risks and providing evidence for the need for supplementary, high-quality audit services. Due to the correlation between KAM disclosure and increased auditor workload and responsibility, the analysis reveals that the COVID-19 factor strengthens the link between KAM disclosure and audit quality. Practical implications This study has the potential to be used as a basis for the creation of a new regulation or standard regarding the reporting of unfavourable events in financial filings. This study’s findings provide standard-setters, regulators and policymakers with current empirical data on the effects of implementing ISA-701’s mandate for external auditors to provide more information on KAM. The COVID-19 crisis offers a suitable setting in which to examine the value of precautionary disclosures in times of economic uncertainty, as well as the significance of confidence interval disclosures and the role of external auditing in calming investor fears. This analysis is helpful for stakeholders, regulatory agencies, standard-setters and readers of audit reports who are curious about the current state of KAM disclosures and the implementation of ISA-701. The results may have ramifications for academia in the form of a call for more evidence expanding this data to other burgeoning fields to have a clear explanation of the real impact of reporting KAM on audit practices. Originality/value To the authors’ awareness, this research is one of the few empirical studies on the effect of the COVID-19 crisis on auditing procedures, and more specifically, the effect of disclosures on KAM by external auditors on audit quality. This study’s findings represent preliminary scientific evidence linking the pandemic to business performance. Minimal research has been done on how auditors in developing nations react to pandemic investor protection and how auditors’ enlarged reporting responsibilities affect them. The vast majority of auditing studies have been conducted in a highly regulated system, so this research contributes by examining audit behaviour in a weak legal context.

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Section: Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Key audit matters and auditing quality in the era of COVID-19 pandemic: the case of Jordan

Alharasis,

Alkhwaldi,

Hussainey

2024

IJLMA

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“…In the days following the announcement of the Coronavirus, risk aversion investors began withdrawing their funds, resulting in a market capitalization decline of more than 15%. Considering that the Covid-19 pandemic was a very unlikely event with severe economic consequences, Taleb (2005) characterized it as a black swan, which is a random event that has three properties: a large impact, a high probability, and a surprise effect (AlAli, 2020) & (Kharabsheh, et al, 2022 and. The pandemic has negative economic consequences that are considered to be the most severe ever not only in terms of health threats but also in terms of economic impacts.…”

Section: Introductionmentioning

confidence: 99%

“…SARS, Ebola, and Spanish Flu) and economic crises (e.g. 2007-2009 financial crisis) (Kharabsheh, et al, 2022) & (Baker et al, 2020). Developing and developed countries were both negatively affected by slower economic growth, production and supply chain disruptions, higher inflation and unemployment (Barro et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

The Impact of Covid-19 on Financial Markets Performance: An Empirical Study in Amman Stock Exchange

2024

qas

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The purpose of this study is to determine the impact of the global health pandemic, Coronavirus on the performance of the Amman Stock Exchange (ASE). The study has adopted descriptive analytical approach design which the data has been gathered from Amman Stock Exchange (ASE) from 2/3/2020 to 20/5/2021. As well as, the number of COVID-19 confirmed cases and deaths are collected from Ministry of Health (MOH). The variables which were considered in the study include market capitalization, trading volume and P/E. In terms of the analysis, (E-Views) time series method has been applied. The results of this study identified that Covid-19 represented by the change in the number of daily cases and the number of deaths have a significant impact on the performance of the Amman Stock Exchange. Moreover, Covid-19 explained (67.8%) of the changes in market capitalization, (78.3%) of the changes in trading volume, and (98.5%) of the changes in the Price-Earnings Ratio (P/E).There may be opportunities associated with crises. As a result of COVID-19, market inefficiency creates profitable opportunities for traders and speculators. This study is primarily for policymakers of developing countries, for formulating their countries' economic and innovation policies. Which there is limitations of the studies that focused on developed countries specially Jordan the findings of the study are delimited to Jordanian stock market returns.

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“…The outbreak has indeed been handled in all areas, with the difficulty to anticipate future possibilities for the outbreak at this time highlighting the need for good catastrophe financial planning as it is the foundation of future planning, and the pandemic’s intricacy has led to a shortage of cash and a debt crisis (Kharabsheh et al , 2022).…”

Section: Introductionmentioning

confidence: 99%

The influence of corona pandemic on stock returns of companies listed on the Palestine Stock Exchange

Badwan¹,

Awad

2023

RAF

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Purpose This study aims to explore and verify the influence of the corona pandemic on the stock returns of the Palestinian companies listed on the Palestine Exchange during the period 2020–2021. Design/methodology/approach The research makes use of secondary financial data from 52 companies in the industrial, investment, services, banking and insurance sectors. Many financial ratios are calculated to assess stock returns: current ratio, cash ratio and average collection time as liquidity measures; debt-to-equity ratio as an indication of leverage or solvency; and net profit margin as an indicator of profitability. The research examines ratios between the (2020 and 2021) precorona outbreak using the Wilcoxon signed rank test and financial ratio analysis during the corona pandemic. Findings The findings show that liquidity in the investment, banking, insurance and industrial sectors has decreased significantly, whereas liquidity in the service sector has improved. The statistics reveal a considerable growth in debt in the service sector, while it stays unchanged in the other sectors. However, there is no discernible change in profitability during and after the corona outbreak. Research limitations/implications The present research faced many limitations, such as the approach to gathering primary data, which depended heavily on disclosures, financial reports and secondary data, as well as only analyzing one context and one country. Practical implications The findings of this study can guide the Palestinian government and decision-makers to respond to the COVID-19 outbreak and must act quickly because strong short-term policies are more functional than long-term policy measures. In addition, the temporal discrepancy between their policy actions and financial regulations regarding the stage of the outbreak, integrating monetary treatment methods, strengthening their control over exchange rate fluctuations and extending the duration of financial participation measures that ensure stable exchange rates, such as attempting to restrict trade of the monetary system between countries was assessed to reduce the important monetary stimulation policy. Originality/value This study presents important facts and results for regulators and decision-makers regarding the investment, industry, banking, insurance and services sectors as sectors that are most affected by the corona pandemic as a sample for this study from the Palestinian companies listed in Palestine Stock Exchange due to the corona pandemic.

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Is there an impact of COVID-19 on the returns of the Amman Stock Exchange?

Cited by 8 publications

References 33 publications

Key audit matters and auditing quality in the era of COVID-19 pandemic: the case of Jordan

Key audit matters and auditing quality in the era of COVID-19 pandemic: the case of Jordan

The Impact of Covid-19 on Financial Markets Performance: An Empirical Study in Amman Stock Exchange

The influence of corona pandemic on stock returns of companies listed on the Palestine Stock Exchange

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