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Enhancing risk management and value creation in Jordanian insurance companies: The impact of IFRS

Emad Alqisi (), Omar Alsinglawi (), Amer Shakour () and Nawal Abu Darwish ()

International Journal of Innovative Research and Scientific Studies, 2025, vol. 8, issue 4, 698-706

Abstract: This study examines how adopting International Financial Reporting Standards (IFRS) helps Jordanian insurance companies manage risks and improve their market value. By analyzing financial statements from 21 insurance firms listed on the Amman Financial Market, the study found that IFRS adoption is closely linked to financial stability. The most widely used IFRS policies were cash flow risk management (50%) and fair value risk management (40%). The findings demonstrate a clear, positive relationship between IFRS adoption and company valuation, highlighting its role in building investor trust. For business leaders and policymakers, this research underscores the importance of IFRS as more than just an accounting standard; it is a strategic tool for financial stability. Encouraging wider adoption of IFRS could strengthen market confidence, attract investment, and support long-term economic growth.

Keywords: Financial Reporting; IFRS; Insurance Companies; Risk Mitigation; Valuation; Jordan. (search for similar items in EconPapers)
Date: 2025
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