The value relevance of corporate voluntary disclosure in the Middle East : the case of Jordan

Mahmoud Al-Akra, Muhammad Jahangir Ali

Research output: Contribution to journalArticlepeer-review

59 Citations (Scopus)

Abstract

We examine whether higher voluntary disclosure, resulting from privatization and the accompanying governance reforms, enhances the value of privatized Jordanian firms. We use panel data for 243 firm-year annual reports (over a period of 9 years from 1996 to 2004) and employ univariate and multivariate tests in order to test our hypothesis,. We construct a governance index to proxy for the impact of privatized firms' governance on voluntary disclosure. Also, we control for the endogeneity of voluntary disclosure in its relation with firm value. Our multivariate results indicate that voluntary disclosure is positively associated with firm value. We also find that firm value is associated with industry types as a proxy for size. However, we did not find that growth and liquidity are associated with firm value.
Original languageEnglish
Pages (from-to)533-549
Number of pages17
JournalJournal of Accounting and Public Policy
Volume31
Issue number5
DOIs
Publication statusPublished - 2012

Keywords

  • Jordan
  • disclosure
  • governance

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