The Impact of Compliance with Codes of Corporate Governance on Quality of Disclosure: Comparative Study between Palestine and Jordan

Abstract

This study seeks to achieve two objectives; (1) to examine the degree of compliance with corporate governance requirements in Palestine and Jordan by listed firms, and (2) to investigate the impact of corporate governance on quality of disclosure for Palestinian and Jordanian listed firms. A sample of 15 Palestinian listed companies and 30 Jordanian listed companies that fully disclosed their financial data in year 2007 and 2014 was used. This research employs multiple regression model and one sample t-test in order to analyze data variables and to test the research hypotheses.The research reveals that there are no statistically significant differences between Jordan and Palestinian listed firms in applying the respective codes of corporate governance, but these two countries are relatively still modest in observing corporate governance rules. This study also concludes that boards of director’s characteristics have no significant impact on quality of disclosure in Palestine and Jordan. This indicates that corporate governance practices didn’t have any significant effect on quality of disclosurefor Palestinian and Jordanian listed firms.