Measurement ofthe Impact of Voluntary Disclosure in the Quality of Financial Reports (Field study at Amman Stock Exchange)

Rasha Hamadeh

Abstract


This study aims to identify the impact of Voluntary Disclosure in the quality of financial reports. To achieve the objective of the study a questionnaire was developed that included the nine components of Voluntary Disclosure:General information of the company, the company's activity and the future status , stock information and shareholders, information management, social and environmental responsibility, results and ratios analysis of financial and non-financial, research and development costs in the company, information about the employees of the company, and information about the governance; to identify the impact of these components in the quality of financial reporting which represented in ability of the information disclosed in making a difference in the decisions of the users of these reports within the research community represented by financial brokerage firms and commercial banks listed on the Amman Stock Exchange. The questionnaires were distributed to a sample of financial analysts working in those firms and commercial banks, and then the results were analyzed and test hypotheses using Statistical Package for Social Sciences(SPSS). The study concluded that there is a significant impact of the components of Voluntary Disclosure in the quality of financial reports, and recommends the need of adoption of the companies listed on the Amman Stock Exchange for the concept of Voluntary Disclosure and display components within their financial reports.

Keywords


Disclosure, Quality, Financial Reports, Amman Stock Exchange (ASE).

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