Papers by Mohammad Shbeilat
International business research, May 7, 2024
Corporate governance and organizational behavior review, 2024
Corporate and business strategy review, 2024
Hiring an independent auditor is a fundamental goal that companies pursue to ensure the integrity... more Hiring an independent auditor is a fundamental goal that companies pursue to ensure the integrity of financial reporting. In developing countries, the literature focuses on examining factors influencing auditor change (Saaydah, 2021), with little interest in understanding the mechanism of external auditor selection (EAS) by audit committee members (ACMs). This study extends the literature by providing an experimental investigation of the main and interactive weights of factors influencing ACMs’ decisions regarding EAS. Using a mixed approach, the study found that prior knowledge of the audit firm had the greatest impact on ACMs’ decisions, in addition to revealing some interactions between the variables. The study provides valuable insights into how the EAS process can be revitalized, prioritized and institutionalized. It also gives auditors a better picture of how to craft a request-for-proposal to enhance their competitiveness. The insights gained also provide 1) a better understanding of the factors that drive EAS and how they interact in shaping the judgments of ACMs; 2) highlighting the importance of transparency in EAS by disclosing the selection mechanism in the annual report; 3) providing a set of recommendations on how to enhance the independence of the audit committee when deciding to nominate auditors.
Corporate and business strategy review, 2024
This study focuses on the association between specific attributes of risk management committees (... more This study focuses on the association between specific attributes of risk management committees (RMCs) and the performance of financial companies listed on the Amman Stock Exchange (ASE). The chosen period, from 2017 to 2022, allows for the examination of trends and changes over time (Callahan & Soileau, 2017). The results indicate that the size of the RMC, independence, and gender diversity within the committee are positively and significantly related to company performance. By contrast, the frequency of meetings and the experience of RMC members do not seem to have a significant impact on performance. The results have potential implications for both managers and boards of companies. By understanding the positive relationship between certain RMC characteristics and firm performance, decision-makers can make informed choices when structuring their RMC. This, in turn, would contribute to enhancing the overall corporate governance of the company, which is crucial for its success. We acknowledge that the association between RMC attributes and firm performance is not yet fully understood. Despite this ambiguity, our research contributes to prior studies by shedding light on the specific roles that various RMC characteristics play in driving firm performance, thereby deepening our understanding of the complex interactions between corporate governance mechanisms and company outcomes.
Accounting and Finance Research, 2023
The aim of the current study is to examine the role of corporate governance structure and the COV... more The aim of the current study is to examine the role of corporate governance structure and the COVID-19 pandemic on the issuing date of annual reporting of UK non-financial institutions. The corporate governance factors that were examined are: audit committee; board characteristics; ownership structure. To achieve the study objective, the sample's data was collected from the financial reporting of companies listed on the London Stock Exchange during the period 2008 to 2021. To examine the effect of COVID-19, the sample was spilt into two groups: before and after 2019. The data collected was analysed by using the panel regression random effect method; the issuing date of annual reporting was measured by counting the number of days that passed between year-end and the date of the issuing of financial reports. The study's findings show that there is a significant relationship between board size, independency of board, audit independence, audit experience, and the issuing date of annual reports. Moreover, after splitting the study's sample, the empirical results supported that the COVID-19 pandemic has a negative effect on the corporate governance mechanisms that enhance the issuing date of annual reports. The study extends prior studies with evidence that demonstrates a relationship between issuing date (timeliness) of annual reports and the strength of corporate governance during the COVID-19 pandemic, and consequently, these findings confirm that corporate governance factors and auditing process enhance annual reporting quality.
Journal of Governance and Regulation
This study provides insights into current perceptions and possible improvements for the use of el... more This study provides insights into current perceptions and possible improvements for the use of electronic accounting applications (EAAs) by micro-enterprises, in addition to identifying the impact on financial inclusion, which aims to promote the use of financial and banking services among various groups of society (Central Bank of Jordan [CBJ], 2018). A sequential exploratory mixed-method was adopted in this research (Creswell & Clark, 2017) where the qualitative phase was conducted first to help gather in depth information about possible factors influencing the non adoption of EAAs in addition to aiding in the design of the quantitative instrument, followed by the quantitative phase to test the posited catalysts that affect the adoption of EAAs by micro-enterprises. Thematic analysis revealed that costs associated with the use of EAAs and the need for qualified personnel to operate EAAs along with a lack of interest in and awareness of e commerce culture were the main reasons for ...
Journal of Governance and Regulation
The spread of money laundering operations and their negative effects on the national economy is a... more The spread of money laundering operations and their negative effects on the national economy is a global challenge. Jordan, in which the overall risk of money laundering was assessed to be high (National Anti-Money Laundering and Terrorism Financing Committee [NAMLTFC], 2020), aims to intensify efforts to combat money laundering operations. This study shed light on the role of forensic accountants in combating money laundering, in addition to highlighting potential obstacles they face in performing their duties. The study employed a concurrent mixed method approach that data collection for both the questionnaire and the interviews was conducted simultaneously. The analysis of the study revealed that forensic accounting techniques contribute to combating money laundering operations. The findings also suggest that to better achieve this goal, forensic accountants must be familiar with contemporary techniques in data collection, process, and analysis. In addition, the study revealed se...
Journal of Governance & Regulation, 2022
This study provides insights into current perceptions and possible improvements for the use of el... more This study provides insights into current perceptions and possible improvements for the use of electronic accounting applications (EAAs) by micro-enterprises, in addition to identifying the impact on financial inclusion, which aims to promote the use of financial and banking services among various groups of society (Central Bank of Jordan [CBJ], 2018). A sequential exploratory mixed-method was adopted in this research (Creswell & Clark, 2017) where the qualitative phase was conducted first to help gather in depth information about possible factors influencing the non adoption of EAAs in addition to aiding in the design of the quantitative instrument, followed by the quantitative phase to test the posited catalysts that affect the adoption of EAAs by micro-enterprises. Thematic analysis revealed that costs associated with the use of EAAs and the need for qualified personnel to operate EAAs along with a lack of interest in and awareness of e commerce culture were the main reasons for the lack of adoption and use of EAAs. On the other hand, the quantitative analysis showed a set of measures that promote the use of EAAs, in addition to a positive relationship in increasing the scope of financial inclusion. This study presents a number of policy implications for regulators such as 1) the central bank and social security as expanding financial inclusion means adequately providing financial support to affected enterprises; 2) Ministry of Digital Economy and Entrepreneurship to sponsor the development of customized, free, and easy-to-use accounting applications; 3) activating the social responsibility of local universities in promoting the financial culture through holding free training courses for micro-enterprises.
Journal of Governance and Regulation, 2022
The spread of money laundering operations and their negative
effects on the national economy is a... more The spread of money laundering operations and their negative
effects on the national economy is a global challenge. Jordan, in
which the overall risk of money laundering was assessed to be high
(National Anti-Money Laundering and Terrorism Financing
Committee [NAMLTFC], 2020), aims to intensify efforts to combat
money laundering operations. This study shed light on the role of
forensic accountants in combating money laundering, in addition
to highlighting potential obstacles they face in performing their
duties. The study employed a concurrent mixed method approach
that data collection for both the questionnaire and the interviews
was conducted simultaneously. The analysis of the study revealed
that forensic accounting techniques contribute to combating
money laundering operations. The findings also suggest that to
better achieve this goal, forensic accountants must be familiar with
contemporary techniques in data collection, process, and analysis.
In addition, the study revealed several obstacles that limit
the desire to work as forensic such as the disproportion of fees
with the effort expended especially when the litigation period
extends for several years, and loss of time due to non-attendance
of witnesses to court. Given that draft companies law mandates
companies to declare the real beneficiaries, regulators can invest
the insights gained from this study to enhance anti-money
laundering cooperation with the International Federation of
Accountants (IFAC) by considering giving auditors greater power in
examining related-party transactions (IAASB, n.d.) to better
identifying real beneficiaries.
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2018
The aim of the study is to identify the necessity of forming an international accounting standard... more The aim of the study is to identify the necessity of forming an international accounting standards committee from the board of director and to investigate its role in reinforcing corporate governance pillars and the integrity of financial reporting. A questionnaire was designed containing 18 items distributed to a sample of 121 external auditors and 121 financial managers of companies listed in Amman Stock Exchange. Response rate of usable survey instruments reached 78%. With the help of SPSS program, one Sample T-Test used to analyze the contents of the survey instrument. The results showed that listed companies face difficulties in applying both the international accounting standards and corporate governance best practices, and also revealed that huge duties placed on the audit committees limits their ability to fulfill their objectives properly and securing the soundness of financial reporting system, therefore this study recommends the formation of an International Accounting Standards Committee from the board of directors to supervise and monitor accounting practices, evaluation judgments, recognition, measurement policies and ensuring adequate disclosure and transparency in accordance with IFRS.
International Business Research, 2019
This study aims to explore the extent of external auditors awareness of the requirements of the I... more This study aims to explore the extent of external auditors awareness of the requirements of the International Standard on Auditing No. 260 (Communications with those charged with governance) on audit quality and to shed light on the effectiveness of the communication process based on auditors actual experience. A mixed method approach was employed to achieve the study objectives. The analysis of 116 questionnaires concluded that the requirements of the ISA 260 enhance audit quality, but the two-way communication between Jordanian auditors and the audit committee is ineffective from external auditor’s perception. The study also found that audit committees do not support external auditor when disagreements arise between auditors and their client management on accounting treatments. The qualitative interviews confirmed the quantitative results and revealed several explanations among which: 1) lack of qualified directors, 2) lack of a clear policy in selecting board members, 3) me...
This study investigates institutional investors’ perceptions and assessment of the level (poor, m... more This study investigates institutional investors’ perceptions and assessment of the level (poor, medium, strong) of corporate accountability in bridging the audit expectation gap, following the implementation of the Jordanian corporate governance code (JCGC). This study employed a qualitative approach; In-depth interviews were conducted with ten financial analysts who work with investment institutions. The study outcomes were based on the literature review, the analysis of the qualitative data and discussions of generated themes. The results revealed that adopting effective corporate accountability system positively contributes in narrowing the audit expectation gap due to the increasing interest in the role of accountability in fighting corruption in Jordan. Such interest arises from the implication that weak corporate accountability suggests that the top management are not accountable and, if they are also major shareholders, they may consider it appropriate to view the company as ...
This thesis has had the benefit of professional editing from Clarity Editors, and I extend my tha... more This thesis has had the benefit of professional editing from Clarity Editors, and I extend my thanks for their invaluable efforts. The services rendered included advice and editing regarding thesis language, completeness and consistency, and did not involve the substance or structure of the thesis. A certificate of services rendered by Clarity Editors during the preparation of this thesis is available in Appendix 9. The fieldwork study went smoothly in Jordan due, in no small part, to the assistance of the Certified Financial Analysts Society in Jordan (CFA-Jordan) in approaching participants for this study. Many thanks also go to all the kind individuals who responded to my survey and also to those who generously gave me of their time in order to conduct face-to-face meetings. Finally, there are a number of people whom I appreciate for their companionship
تهدف هذه الدراسة للتعرف على مدى أهمية صياغة معيار محاسبي خاص بنظم المعلومات المحاسبية الالكترونية... more تهدف هذه الدراسة للتعرف على مدى أهمية صياغة معيار محاسبي خاص بنظم المعلومات المحاسبية الالكترونية ضمن معايير الإبلاغ المالي الدولية من وجهة نظر الأطراف ذوي العلاقة بمهنة المحاسبة. وقد تم تطوير استبانة وزعت على عينة من أعضاء الهيئة التدريسية في أقسام المحاسبة في الجامعات الأردنية وعلى المديرين الماليين في الشركات الأردنية المساهمة العامة وعلى المدققين الأردنيين للتعرف على مدى اهتمام هذه الأطراف بصياغة معيار محاسبي دولي خاص بنظم المعلومات المحاسبية الالكترونية. بلغ عدد الاستبانات الموزعة 300 استبانة، استرد منها 253 واستبعد منها 3 استبانات (غير مكتملة) ليصبح عدد الاستبانات الصالحة للتحليل 250. تم تحليل النتائج واختبار الفرضيات باستخدام الرزمة الإحصائية للعلوم الاجتماعية SPSS. وقد دلت نتائج الدراسة إلى أنه لنظم المعلومات المحاسبية المستخدمة للتقنيات الحديثة (الالكترونية) أهمية كبيرة للقيام بأعمال المنشات المختلفة والمتنوعة الأحجام والنشاطات بكل كفاءة وفعالية. وقد خلصت الدراسة أيضا إلى توافر رغبة لدى الأطراف المستخدمين للنظم المحاسبية الالكترونية في قيام مجلس معايير المحاسبة الدولية بإصد...
Accounting and Finance Research
Investors’ reliability on financial statements decreases due to continuing corporate scandals. Ma... more Investors’ reliability on financial statements decreases due to continuing corporate scandals. Many of these rogue listed companies have had dominant shareholders who have circumvented internal controls for personal gain or have hidden poor management using misleading reporting. This has led to calls for restructuring the annual financial report and to fill the gap of corporate governance constituents. This study aims to highlight the importance of combining the efforts of the audit trinity (those are: the audit committee, the external auditor and the internal auditor) in securing the financial reporting system and corporate governance. This literature-based study suggests coordinating and integrating the efforts of the audit trinity and the issue a joint report addressing all matters related to (1) safeguarding company’s assets and accounts (2) ensuring that financial statements and the annual report are fair, balanced and reliable, and (3) ensure the entity’s compliance with appli...
Journal of Emerging Trends in Economics and Management Sciences, 2014
Audit committees are the cornerstone of corporate governance. They play a vital role in overseein... more Audit committees are the cornerstone of corporate governance. They play a vital role in overseeing accountability, and work as a liaison between internal auditors, external auditors, executive management and the board of directors. Corporate scandals, such as the demise of Enron-Arthur Andersen in the U.S.A. and Petra Bank in Jordan, have undermined stakeholders' confidence in the capital markets. Such scandals might be caused by the lack of a corporate accountability system and by management pressure exerted on audit scope or the auditor's fee. These scandals imply a message that relying on the perceived independence of external auditors may not be sufficient and, therefore, corporate governance systems must be restructured because financial collapses may harm society and cost the government both economically and socially. This analytical research paper proposes and outlines a model of audit committee to reinforce the effectiveness of the corporate governance structure. The...
Poor corporate governance practices and ineffective audit committee functions lead to corporate s... more Poor corporate governance practices and ineffective audit committee functions lead to corporate scandals, such as the demise of Enron and their external auditor (Arthur Andersen). This study investigates the constituents of external auditor’s independence and their impacts on the reliability of the audit report from institutional investors’ perception. This study complements existing Jordanian quantitative studies by adding more qualitative findings and interpretations to them. Semi-structured interviews are used in this study because there have been few qualitative studies dealing with Jordanian corporate governance. This study employed a qualitative approach; in-depth interviews were conducted with ten financial analysts who work with investment institutions. The study outcomes were based on the literature review, the analysis of the qualitative data, and discussions of generated themes. The study found that external auditor’s independence coupled with adequate support of fully-in...
Audit committees are the cornerstone of corporate governance. They play a vital role in overseein... more Audit committees are the cornerstone of corporate governance. They play a vital role in overseeing accountability, and work as a liaison between internal auditors, external auditors, executive management and the board of directors. Corporate scandals, such as the demise of Enron-Arthur Andersen in the U.S.A. and Petra Bank in Jordan, have undermined stakeholders' confidence in the capital markets. Such scandals might be caused by the lack of a corporate accountability system and by management pressure exerted on audit scope or the auditor's fee. These scandals imply a message that relying on the perceived independence of external auditors may not be sufficient and, therefore, corporate governance systems must be restructured because financial collapses may harm society and cost the government both economically and socially. This analytical research paper proposes and outlines a model of audit committee to reinforce the effectiveness of the corporate governance structure. The...
Accounting and Finance Research, 2016
The aim of the study is to identify the role of Jordanian universities in the trend towards the d... more The aim of the study is to identify the role of Jordanian universities in the trend towards the development of technical competence for accounting learning outcomes in line with the second international standard of accounting education (IES 2). In order to achieve the goals of this study, an analytical method was applied to the content of the plans and curricula of a random sample of 10 Jordanian universities, followed by conducting 8 interviews with academic staff and students in accounting. The study revealed a number of notable findings, chief of which is that Jordanian universities do not apply IES 2, whereby a high proportion of technical competence of educational curricula taught in accounting departments, do not comply with the content requirements stipulated in the IES 2. The study also revealed that the majority of educational courses taught in university accounting departments do not incorporate sufficient topics to provide the required knowledge, and some study plans of universities within the study sample have not been consistently and continuously updated and developed. Based on these findings, the study proposes a number of recommendations, chief of which is requiring Jordanian universities to work towards the standardization of accounting education plans across Jordanian universities as a prerequisite to mitigate the disparity in the results of university competency test among Jordanian universities. In pursuit of this recommendation, this study presents a suggested model for accounting study plan that complies with both IES 2 and the requirements of The Higher Education Accreditation Commission.
The aim of the study is to identify the necessity of forming an international accounting standard... more The aim of the study is to identify the necessity of forming an international accounting standards committee from the board of director and to investigate its role in reinforcing corporate governance pillars and the integrity of financial reporting. A questionnaire was designed containing 18 items distributed to a sample of 121 external auditors and 121 financial managers of companies listed in Amman Stock Exchange. Response rate of usable survey instruments reached 78%. With the help of SPSS program, one Sample T-Test used to analyze the contents of the survey instrument. The results showed that listed companies face difficulties in applying both the international accounting standards and corporate governance best practices, and also revealed that huge duties placed on the audit committees limits their ability to fulfill their objectives properly and securing the soundness of financial reporting system, therefore this study recommends the formation of an International Accounting St...
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Papers by Mohammad Shbeilat
effects on the national economy is a global challenge. Jordan, in
which the overall risk of money laundering was assessed to be high
(National Anti-Money Laundering and Terrorism Financing
Committee [NAMLTFC], 2020), aims to intensify efforts to combat
money laundering operations. This study shed light on the role of
forensic accountants in combating money laundering, in addition
to highlighting potential obstacles they face in performing their
duties. The study employed a concurrent mixed method approach
that data collection for both the questionnaire and the interviews
was conducted simultaneously. The analysis of the study revealed
that forensic accounting techniques contribute to combating
money laundering operations. The findings also suggest that to
better achieve this goal, forensic accountants must be familiar with
contemporary techniques in data collection, process, and analysis.
In addition, the study revealed several obstacles that limit
the desire to work as forensic such as the disproportion of fees
with the effort expended especially when the litigation period
extends for several years, and loss of time due to non-attendance
of witnesses to court. Given that draft companies law mandates
companies to declare the real beneficiaries, regulators can invest
the insights gained from this study to enhance anti-money
laundering cooperation with the International Federation of
Accountants (IFAC) by considering giving auditors greater power in
examining related-party transactions (IAASB, n.d.) to better
identifying real beneficiaries.
effects on the national economy is a global challenge. Jordan, in
which the overall risk of money laundering was assessed to be high
(National Anti-Money Laundering and Terrorism Financing
Committee [NAMLTFC], 2020), aims to intensify efforts to combat
money laundering operations. This study shed light on the role of
forensic accountants in combating money laundering, in addition
to highlighting potential obstacles they face in performing their
duties. The study employed a concurrent mixed method approach
that data collection for both the questionnaire and the interviews
was conducted simultaneously. The analysis of the study revealed
that forensic accounting techniques contribute to combating
money laundering operations. The findings also suggest that to
better achieve this goal, forensic accountants must be familiar with
contemporary techniques in data collection, process, and analysis.
In addition, the study revealed several obstacles that limit
the desire to work as forensic such as the disproportion of fees
with the effort expended especially when the litigation period
extends for several years, and loss of time due to non-attendance
of witnesses to court. Given that draft companies law mandates
companies to declare the real beneficiaries, regulators can invest
the insights gained from this study to enhance anti-money
laundering cooperation with the International Federation of
Accountants (IFAC) by considering giving auditors greater power in
examining related-party transactions (IAASB, n.d.) to better
identifying real beneficiaries.