Open AccessEffectiveness of the board of directors' performance in Jordan: The moderating effect of enterprise risk management
Author(s) -
Saddam Ali Shatnawi,
Ahmad Marei,
Luay Daoud,
Dina Alkhodary,
Maha Shehadeh
Publication year - 2022
Publication title -
international journal of data and network science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.296
H-Index - 7
eISSN - 2561-8156
pISSN - 2561-8148
DOI - 10.5267/j.ijdns.2022.2.013
Subject(s) - return on assets , accounting , business , enterprise risk management , stock exchange , return on equity , regression analysis , moderation , equity (law) , risk management , multilevel model , finance , psychology , social psychology , machine learning , computer science , political science , law
This study aims to investigate the moderating effect of enterprise risk management on the relationship between the board of directors’ effectiveness on accounting and market performance in Jordan. The current study uses panel data of 684 firm-year observations, employed regression analysis and analysis of annual reports of 76 listed companies on the Amman stock exchange (ASE) from 2009 to 2017 covering 9 years. The findings of the hierarchical regression analysis showed that the enterprise risk management has a significant positive moderating effect on the relationship between the board of directors’ effectiveness on accounting and market performance in Jordan. The findings reveal that enterprise risk management positively moderated the relationship between board of directors’ effectiveness on Return on Assets, Return on Equity, and Tobin’s Q. It also moderated the interaction of board of directors’ effectiveness intercept enterprise risk management on Return on Assets and Return on Equity, which were found positive and significant. The findings of this paper can provide crucial conclusions and recommendations that clarify the relationship between the board of directors’ effectiveness and the accounting and market performance in Jordan and the moderate impact of the enterprise risk management.