The quality level of perceived accounting information by institutional investors in Jordan

Abstract EN

This study examines the current quality level of disclosed accounting information in Jordan in terms of its usefulness to investors.

Specifically, two information qualities, relevance and reliability, are investigated using the specifications of the International Accounting Standard (IAS) No.

1.

Comparative analysis and descriptive statistics are used to investigate the hypotheses utilizing data by soliciting the perceptions of 34 institutional investors through a questionnaire The results have shown that information users in Jordan do not perceive reported information as significantly relevant although they perceive moderate reliability.

Testing for the combined effect of the two qualities together indicates that the quality of disclosed information in Jordan is below the acceptable level anticipated by international standards for disclosure.

The study recommends that the Jordanian Securities Exchange Commission (JSEC) incorporate some missing disclosure issues in its Laws and Instructions.

The study recommends that Jordanian firms participate in building a viable information market by reporting relevant and reliable information and by cooperating with the JSEC and AFM in the proper application of international reporting standard.

The study calls for further research on disclosure until a full comprehensive system is established in the country.