Impact of Ownership Characteristics on Modified Audit Opinion in Jordan

Saleh Zaid Alkilani; Wan Nordin Wan Hussin; Basariah Salim

doi:doi:10.11648/j.ijafrm.20190403.11

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Impact of Ownership Characteristics on Modified Audit Opinion in Jordan

Saleh Zaid Alkilani, Wan Nordin Wan Hussin, Basariah Salim

Published in International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 3)

Received: 7 June 2019 Accepted: 4 July 2019 Published: 30 July 2019

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Abstract

It is well established that ownership characteristics are impacted by the quality of financial reporting. The purpose of this work is to examine the role of ownership characteristics in minimising the prospect of corporates obtaining a modified audit opinion in Jordan. Three ownership characteristics [family ownership (FAOWN), institutional ownership (INOWN) and foreign ownership (FAOWN)] and modified audit opinion were studied. The study used 117 samples of corporates listed on the Amman Stock Exchange (ASE). Logistic regression was employed to analyse the association between the modified audit opinions as a dependent variable and ownership characteristics as independent variables. Ownership characteristics are anticipated to be more successful in improving the quality of financial statement, and thus, reduce the prospect of firm obtaining a modified audit opinion. The analysed results from 2012 to 2016 periods of these corporates in Jordan showed that FAOWN and FOOWN validated this projection. Interestingly, the effect of family and FOOWN improve the quality of financial statement, thereby, reduce the cases of a modified audit opinion. Additionally, the study could not find any association impact between the INOWN and modified audit opinion.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 3)
DOI	10.11648/j.ijafrm.20190403.11
Page(s)	71-83
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Modified Audit Opinion, Ownership Structure, Family Ownership, Institutional Ownership, Foreign Ownership

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Saleh Zaid Alkilani, Wan Nordin Wan Hussin, Basariah Salim. (2019). Impact of Ownership Characteristics on Modified Audit Opinion in Jordan. International Journal of Accounting, Finance and Risk Management, 4(3), 71-83. https://doi.org/10.11648/j.ijafrm.20190403.11

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Saleh Zaid Alkilani; Wan Nordin Wan Hussin; Basariah Salim. Impact of Ownership Characteristics on Modified Audit Opinion in Jordan. Int. J. Account. Finance Risk Manag. 2019, 4(3), 71-83. doi: 10.11648/j.ijafrm.20190403.11

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Saleh Zaid Alkilani, Wan Nordin Wan Hussin, Basariah Salim. Impact of Ownership Characteristics on Modified Audit Opinion in Jordan. Int J Account Finance Risk Manag. 2019;4(3):71-83. doi: 10.11648/j.ijafrm.20190403.11

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@article{10.11648/j.ijafrm.20190403.11,
  author = {Saleh Zaid Alkilani and Wan Nordin Wan Hussin and Basariah Salim},
  title = {Impact of Ownership Characteristics on Modified Audit Opinion in Jordan},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {3},
  pages = {71-83},
  doi = {10.11648/j.ijafrm.20190403.11},
  url = {https://doi.org/10.11648/j.ijafrm.20190403.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190403.11},
  abstract = {It is well established that ownership characteristics are impacted by the quality of financial reporting. The purpose of this work is to examine the role of ownership characteristics in minimising the prospect of corporates obtaining a modified audit opinion in Jordan. Three ownership characteristics [family ownership (FAOWN), institutional ownership (INOWN) and foreign ownership (FAOWN)] and modified audit opinion were studied. The study used 117 samples of corporates listed on the Amman Stock Exchange (ASE). Logistic regression was employed to analyse the association between the modified audit opinions as a dependent variable and ownership characteristics as independent variables. Ownership characteristics are anticipated to be more successful in improving the quality of financial statement, and thus, reduce the prospect of firm obtaining a modified audit opinion. The analysed results from 2012 to 2016 periods of these corporates in Jordan showed that FAOWN and FOOWN validated this projection. Interestingly, the effect of family and FOOWN improve the quality of financial statement, thereby, reduce the cases of a modified audit opinion. Additionally, the study could not find any association impact between the INOWN and modified audit opinion.},
 year = {2019}
}

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TY  - JOUR
T1  - Impact of Ownership Characteristics on Modified Audit Opinion in Jordan
AU  - Saleh Zaid Alkilani
AU  - Wan Nordin Wan Hussin
AU  - Basariah Salim
Y1  - 2019/07/30
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JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
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PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190403.11
AB  - It is well established that ownership characteristics are impacted by the quality of financial reporting. The purpose of this work is to examine the role of ownership characteristics in minimising the prospect of corporates obtaining a modified audit opinion in Jordan. Three ownership characteristics [family ownership (FAOWN), institutional ownership (INOWN) and foreign ownership (FAOWN)] and modified audit opinion were studied. The study used 117 samples of corporates listed on the Amman Stock Exchange (ASE). Logistic regression was employed to analyse the association between the modified audit opinions as a dependent variable and ownership characteristics as independent variables. Ownership characteristics are anticipated to be more successful in improving the quality of financial statement, and thus, reduce the prospect of firm obtaining a modified audit opinion. The analysed results from 2012 to 2016 periods of these corporates in Jordan showed that FAOWN and FOOWN validated this projection. Interestingly, the effect of family and FOOWN improve the quality of financial statement, thereby, reduce the cases of a modified audit opinion. Additionally, the study could not find any association impact between the INOWN and modified audit opinion.
VL  - 4
IS  - 3
ER  -

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Author Information

Saleh Zaid Alkilani

Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Sintok, Malaysia
Wan Nordin Wan Hussin

Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Sintok, Malaysia
Basariah Salim

Tunku Intan Shafinaz Accounting School, Universiti Utara Malaysia, Sintok, Malaysia

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APA Style

Saleh Zaid Alkilani, Wan Nordin Wan Hussin, Basariah Salim. (2019). Impact of Ownership Characteristics on Modified Audit Opinion in Jordan. International Journal of Accounting, Finance and Risk Management, 4(3), 71-83. https://doi.org/10.11648/j.ijafrm.20190403.11

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ACS Style

Saleh Zaid Alkilani; Wan Nordin Wan Hussin; Basariah Salim. Impact of Ownership Characteristics on Modified Audit Opinion in Jordan. Int. J. Account. Finance Risk Manag. 2019, 4(3), 71-83. doi: 10.11648/j.ijafrm.20190403.11

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AMA Style

Saleh Zaid Alkilani, Wan Nordin Wan Hussin, Basariah Salim. Impact of Ownership Characteristics on Modified Audit Opinion in Jordan. Int J Account Finance Risk Manag. 2019;4(3):71-83. doi: 10.11648/j.ijafrm.20190403.11

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@article{10.11648/j.ijafrm.20190403.11,
  author = {Saleh Zaid Alkilani and Wan Nordin Wan Hussin and Basariah Salim},
  title = {Impact of Ownership Characteristics on Modified Audit Opinion in Jordan},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {3},
  pages = {71-83},
  doi = {10.11648/j.ijafrm.20190403.11},
  url = {https://doi.org/10.11648/j.ijafrm.20190403.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190403.11},
  abstract = {It is well established that ownership characteristics are impacted by the quality of financial reporting. The purpose of this work is to examine the role of ownership characteristics in minimising the prospect of corporates obtaining a modified audit opinion in Jordan. Three ownership characteristics [family ownership (FAOWN), institutional ownership (INOWN) and foreign ownership (FAOWN)] and modified audit opinion were studied. The study used 117 samples of corporates listed on the Amman Stock Exchange (ASE). Logistic regression was employed to analyse the association between the modified audit opinions as a dependent variable and ownership characteristics as independent variables. Ownership characteristics are anticipated to be more successful in improving the quality of financial statement, and thus, reduce the prospect of firm obtaining a modified audit opinion. The analysed results from 2012 to 2016 periods of these corporates in Jordan showed that FAOWN and FOOWN validated this projection. Interestingly, the effect of family and FOOWN improve the quality of financial statement, thereby, reduce the cases of a modified audit opinion. Additionally, the study could not find any association impact between the INOWN and modified audit opinion.},
 year = {2019}
}

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TY  - JOUR
T1  - Impact of Ownership Characteristics on Modified Audit Opinion in Jordan
AU  - Saleh Zaid Alkilani
AU  - Wan Nordin Wan Hussin
AU  - Basariah Salim
Y1  - 2019/07/30
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190403.11
DO  - 10.11648/j.ijafrm.20190403.11
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 71
EP  - 83
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190403.11
AB  - It is well established that ownership characteristics are impacted by the quality of financial reporting. The purpose of this work is to examine the role of ownership characteristics in minimising the prospect of corporates obtaining a modified audit opinion in Jordan. Three ownership characteristics [family ownership (FAOWN), institutional ownership (INOWN) and foreign ownership (FAOWN)] and modified audit opinion were studied. The study used 117 samples of corporates listed on the Amman Stock Exchange (ASE). Logistic regression was employed to analyse the association between the modified audit opinions as a dependent variable and ownership characteristics as independent variables. Ownership characteristics are anticipated to be more successful in improving the quality of financial statement, and thus, reduce the prospect of firm obtaining a modified audit opinion. The analysed results from 2012 to 2016 periods of these corporates in Jordan showed that FAOWN and FOOWN validated this projection. Interestingly, the effect of family and FOOWN improve the quality of financial statement, thereby, reduce the cases of a modified audit opinion. Additionally, the study could not find any association impact between the INOWN and modified audit opinion.
VL  - 4
IS  - 3
ER  -

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