The effect of financial incentives for the board of directors on the disclosure level of the quantity and coverage of risks in Jordanian industrial companies
by Ashraf Bataineh; Ziyad Mustafa Shwiyat
International Journal of Business Continuity and Risk Management (IJBCRM), Vol. 14, No. 3, 2024

Abstract: This study aimed to assess the effect of financial incentives for board members on the disclosure level of both the quantity and coverage of risks within Jordanian industrial companies. To gather data for the study analysis variables spanning from 2019 to 2022, the financial reports of these companies were examined by using statistical analysis program SPSS. The findings indicate a positive correlation between financial incentives, specifically the ownership percentage of non-executive board members and their financial expertise, and the disclosure level of quantity risks within these companies. Furthermore, the results reveal a negative relationship between board member salaries and compensation, and disclosure level of both the quantity and coverage aspects of company risks. Conversely, the educational level of board members positively influenced the disclosure of risk coverage. Regulatory authorities are recommended to encourage companies to strengthen their adherence to corporate governance standards in regulating the disclosure level of company risks.

Online publication date: Tue, 27-Aug-2024

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Continuity and Risk Management (IJBCRM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com