The Impact of Ownership Structure and Family Board Domination on Voluntary Disclosure for Jordanian Listed Companies

Eurasian Business Review, April 2015

32 Pages Posted: 24 Apr 2015 Last revised: 10 May 2016

See all articles by Ayman E. Haddad

Ayman E. Haddad

American University of Kuwait

Wasim K. Al Shattarat

Gulf University for Science and Technology (GUST)

Naser M. Abughazaleh

Gulf University for Science and Technology (GUST)

Haitham Nobanee

Abu Dhabi University; University of Oxford; University of Liverpool

Date Written: April 23, 2015

Abstract

This study investigates the impact of ownership structure and family board domination on voluntary disclosure for Jordanian listed companies. Ownership structure is characterised by government ownership, outside ownership, managerial ownership and number of shareholders. This study is based on a cross-sectional examination of the effect of corporate ownership structure and family domination on voluntary disclosure after controlling other variables for 57 non-financial Jordanian companies listed on the Amman Stock Exchange. The multiple regression results show that the extent of voluntary disclosure is positively associated with government ownership and negatively associated with the proportion of shares held by management. Furthermore, we show that family domination is a significant factor in explaining variations in voluntary disclosure. We conclude that government ownership can help to promote transparency, but it has not yet eliminated the influence of management and the family control of boards on disclosure. However, outside ownership and number of shareholders are not associated with voluntary disclosure.

Suggested Citation

Haddad, Ayman E. and Al Shattarat, Wasim K. and Abughazaleh, Naser M. and Nobanee, Haitham, The Impact of Ownership Structure and Family Board Domination on Voluntary Disclosure for Jordanian Listed Companies (April 23, 2015). Eurasian Business Review, April 2015, Available at SSRN: https://ssrn.com/abstract=2597991

Ayman E. Haddad (Contact Author)

American University of Kuwait ( email )

Department of Accounting
Kuwait, 13034
Kuwait

Wasim K. Al Shattarat

Gulf University for Science and Technology (GUST) ( email )

Masjid Al Aqsa Street
Mubarak Al-Abdullah
Kuwait

Naser M. Abughazaleh

Gulf University for Science and Technology (GUST) ( email )

Masjid Al Aqsa Street
Mubarak Al-Abdullah
Kuwait

Haitham Nobanee

Abu Dhabi University ( email )

Abu Dhabi
United Arab Emirates

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

University of Liverpool ( email )

Chatham Street
Liverpool, L69 7ZA
United Kingdom

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