The Impact of the Quality of Financial Reporting On Non-Financial Business Performance and the Role of Organizations Demographic' Attributes (Type, Size and Experience)

Abstract

Understanding the relationship between the quality financial reporting and business performance has received great attention by academic researchers and professional recently. However, in fact, there is lack of prior studies that have examined empirically the relationship between the quality of financial reporting and non-financial business performance measures in a systematic approach, which limited our understanding of the concept of quality of financial reporting and its importance. Therefore, the purposes of this research is to examine empirically the proposed relationship between the quality of financial reporting and non-financial business performance in public listed companies in Jordan and to find out whether their demographic attributes (type, size and experience) have any impact on the quality of financial reporting. For these purposes, a conceptual framework based on the content analysis of the previous studies was developed. The data for this research were collected through self administrated questionnaire of 239 respondents from public listed companies in Stock Amman Market database (2017). The results showed that that the components of the quality of financial reporting are significantly influence the non-financial business performance and the variations of the quality of financial reporting among these companies were significantly found to be related to their size and experience and not to their type of business, which they belong to.