The Effect of Effective Corporate Governance Structure in Improving Investors' Confidence in the Public Financial Information

Nabil Alnaser (), Osama Samih Shaban () and Ziad Al-Zubi ()

International Journal of Academic Research in Business and Social Sciences, 2014, vol. 4, issue 1, 556-569

Abstract: The primary goal of corporate governance is to create a balance of power-sharing among shareholders, directors, and management to enhance shareholder value and protect the interests of other stakeholders. Effective corporate governance structure improves investor confidence, it ensures corporate accountability, enhances the reliability and quality of public financial information, and enhances the integrity and efficiency of the capital market. The study has covered 10 public companies in Jordan. Resolution data were analyzed using the statistical program (SPSS), in addition to other statistical methods. The study concluded that corporate governance in the Jordanian public companies is effective because it is complying with state and federal statutes, complying with listing standards, and implementing best practices suggested by investor's activists and professional organizations. Also the study recommended to maintain the current level of investors' confidence and to work on developing the legal framework for corporate governance in the light of the proposed development of a conceptual framework, and finally encouraging accounting, administrative, economic and legal research and studies, that leads to the best practices to meet the governance requirements.

Keywords: Corporate governance; Investors'confidence; Corporate accountability; corporate culture (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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