The Impact of Accounting Systems and Professional Standards in Enhancing Effectiveness and Efficiency of Corporate Governance Systems of Jordanian Public Shareholding Companies

Mohammad A. Matar

Abstract


The study aimed to investigate the impact of accounting systems and professional standards on enhancing the effectiveness and efficiency of corporate governance systems of Jordanian shareholding companies.

The study consisted of two main parts: the first part covered the theoretical framework of (CG), while the second is a field study on a sample of (76) persons who were selected from three groups. Those groups are: non-executive members of the board of directors, external auditors and other bodies who are mainly involved in the development and follow-up of the professional standards such as the central bank, Amman stock exchange and the Jordanian association of certified public accountants.

After analyzing the study data and testing its hypotheses using the two – sample (t) test and the one-way analysis of variance (ANOVA), the study revealed two main findings:

1. All the accounting systems and professional standards have important impacts on enhancing the effectiveness and efficiency of Corporate Governance Systems (CGS), except the social responsibility accounting system which has a moderate impact.

2. The (ANOVA) test revealed that there are significant statistical differences between the viewpoints of the three groups toward the relative importance of accounting systems on enhancing the effectiveness and efficiency of (CGS). This was due to their different opinions toward the impact of the social responsibility accounting system and the cost and management system. On the other hand, the same test (ANOVA) revealed that there are no significant statistical differences between the viewpoints of the three groups toward the relative importance of the professional standards on enhancing the effectiveness and efficiency of (CGS).


Keywords


Corporate Governance, Accounting Systems, Professional Standards, Effectiveness and Efficiency of Corporate Governance Systems.

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