The moderating effect of corporate governance on readability of the chairman's statement: an analysis of Jordanian listed companies

Herenia Gutiérrez Ponce (), Julián Chamizo González () and Manar Al-Mohareb ()
Additional contact information
Herenia Gutiérrez Ponce: Universidad Autónoma de Madrid, Faculty of Economics and Business
Julián Chamizo González: Universidad Autónoma de Madrid, Faculty of Economics and Business
Manar Al-Mohareb: Universidad Autónoma de Madrid, Faculty of Economics and Business

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 12, No 36, 29409 pages

Abstract: Abstract Due to the novelty of corporate governance rules in emerging economies, which could impact management policies and readability of the statement by the chairman of the Board of Directors, academics and companies have analyzed the moderating role of corporate governance in many regional development issues. This study investigates the moderating role of corporate governance in readability of the chairman's statement and firm performance. It also investigates whether the board’s characteristics directly affect chairman's statement readability, as the board’s characteristics were determined to be independence, ownership concentration, and board's accounting expertise, based on Jordan’s Corporate Governance Code (2017). This study uses multiple linear regression analysis to analyze moderation and cause-and-effect relationships between study variables for Jordanian service and manufacturing companies listed on the Amman Stock Exchange, examining 69 companies from 2017 to 2021. The results indicate that corporate governance significantly moderates readability of the chairman's statement and the firm’s performance. They also indicate a statistical relationship between readability of the chairman's statement and characteristics of the board, such as directors’ accounting expertise, independence, and concentration of the board’s ownership. This study has significant implications for stakeholders, including governance policy-makers.

Keywords: Board’s characteristics; Emerging markets; Legislative amendments to governance; Moderation analysis; Opportunistic behavior (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10668-024-04876-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:endesu:v:27:y:2025:i:12:d:10.1007_s10668-024-04876-z

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10668

DOI: 10.1007/s10668-024-04876-z

Access Statistics for this article

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development is currently edited by Luc Hens

More articles in Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().