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28 pages, 349 KB

Open AccessArticle

Government Ownership as a Catalyst: Corporate Governance and Corporate Social Responsibility in Jordan’s Industrial Sector

by Abdelrazaq Farah Freihat and Renad Al-Hiyari

J. Risk Financial Manag. 2025, 18(5), 260; https://doi.org/10.3390/jrfm18050260 - 11 May 2025

Cited by 1 | Viewed by 2427

Abstract

This research examines how corporate governance (CG) affects corporate social responsibility (CSR) disclosure with government ownership as a moderation factor by analyzing panel data from 30 industrial firms listed on the Amman Stock Exchange during 2018–2022. The study employed board of directors and audit committee characteristics as independent variables to represent CG while developing a CSR disclosure index. The research controlled for company size and financial leverage in its model. The findings demonstrate that corporate governance dimensions affect CSR disclosure, while government ownership significantly enhances this relationship in a positive direction. Government ownership increases R² values, which shows that corporate governance merged with government ownership modifies the corporate governance and CSR disclosure relationship by strengthening the impact when government stakes rise. Statistical analysis revealed that board independence, board duality, audit committee size and independence, along with audit committee meeting frequency, all had positive effects on CSR disclosure. The study found no statistically significant effect of board size, frequency of board meetings, or the financial expertise of audit committee members on CSR disclosure. Based on the findings, this study outlines recommendations to strengthen governance practices that support social disclosure. Full article

(This article belongs to the Special Issue Environmental, Social, and Governance (ESG), Corporate Social Responsibility (CSR), and Green Finance)

21 pages, 1157 KB

Open AccessArticle

The Effects of Key Audit Matters and Stock Ownership on Audit Committee Members’ Accounting Preferences

by Michelle Höfmann, Christiane Pott and Sandra Chrzan

J. Risk Financial Manag. 2024, 17(11), 525; https://doi.org/10.3390/jrfm17110525 - 20 Nov 2024

Cited by 1 | Viewed by 3521

Abstract

This study investigated the interactive effect of key audit matters (KAMs) and stock ownership on German audit committee (AC) members’ preferences regarding accounting issues in an experimental setting. Specifically, we explored whether the increased accountability of AC members to investors, resulting from KAM disclosures, is influenced by whether an AC member owns shares in the audited company. Our findings suggest that the disclosure of KAMs supports a conservative management accounting preference. However, KAMs can be used by stock-owning AC members as disclaimers that inform the investing public and might serve as legitimation tools for ACs with a preference for less conservative accounting. Hence, our study provides evidence from a two-tier governance country that audit committee members’ accounting preferences based on disclosed KAMs depend on their financial independence. Full article

(This article belongs to the Special Issue Judgment and Decision-Making Research in Auditing)

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