The effect of financial reporting quality on earnings quality of industrial companies
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Aiman Mahmoud Abu Hamour 
, Mousa Mohammad Abdullah Saleh , Khawla Kassed Abdo , Alq’aqa’a Khalaf Ali Alzu’bi , Esra Ali Alnsour , Abdullah Mahmoud Yousef Jwaifel
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
This study investigates the relationship between financial reporting quality and earnings quality in Jordanian industrial companies. This paper used a survey-based approach, utilizing questionnaires to collect data from selected participants representing Jordanian industrial companies using SmartPLS 4. The study confirms a positive relationship between financial reporting and earnings quality in Jordanian industrial companies. Preparing accurate financial reports allows visualization of the company’s financial position and performance in accordance with accounting standards and disclosure practices. The findings offer valuable guidance to regulators, investors, and stakeholders in understanding the significance of financial reporting quality and its implications for evaluating financial performance and decision-making processes. In addition to promotes financial transparency and informed decision making in the Jordanian industrial sector. This study enhances understanding of the importance of financial reporting quality for ensuring reliable and accurate earnings information. The study’s PLS-SEM methodology also contributes to the methodological literature in this area.
Keywords: Financial Reporting Quality, Earnings Quality, Jordanian Industrial Companies, Accounting Standards
Authors’ individual contribution: Conceptualization — M.M.A.S., K.K.A., and E.A.A.; Methodology — A.K.A.A.; Formal Analysis — M.M.A.S. and K.K.A.; Resources — A.M.Y.J.; Writing — Original Draft — M.M.A.S., K.K.A., and E.A.A.; Writing — Review & Editing — A.M.A.H., M.M.A.S., A.K.A.A., E.A.A., and A.M.Y.J.
Declaration of conflicting interests: The Authors declare that there is no conflict of interest.
JEL Classification: G14, G32, L60, M41, M42
Received: 20.08.2023
Accepted: 12.04.2024
Published online: 16.04.2024
How to cite this paper: Abu Hamour, A. M., Saleh, M. M. A., Abdo, K. K., Alzu’bi, A. K. A., Alnsour, E. A., & Jwaifel, A. M. Y. (2024). The effect of financial reporting quality on earnings quality of industrial companies. Corporate & Business Strategy Review, 5(2), 38–50. https://doi.org/10.22495/cbsrv5i2art4
