The Effect of Board of Directors’ Characteristics and Ownership Type on the Timeliness of Financial Reports

摘要

This study examines the board of directors’ (BOD) characteristics and ownership type on the timeliness of financial reports (TFRs). The characteristics of the BOD examined in this study include CEO duality, board size, the proportion of women on the board and the proportion of CEOs on the board. Moreover, management ownership, foreign ownership and non-foreign ownership among other factors such as company age and its size are controlled for in the model. Data were collected from 68 annual reports of listed companies on Amman Stock Exchange (ASE) for the period between 2011 to 2015. The first model results show that CEO duality, the proportions of women as well as the proportion CEOs on the board have significant effects on the TFRs. The companies’ age and size have a negative effect on the TFRs. However, the board size showed no significant effect; a board with less than eight members has a negative effect and a one with more than eight shows a positive effect on the TFRs. Furthermore, the second model which examines the ownership type effect on the TFRs shows that management ownership has no significant effect. Non-foreign ownership has a negative effect, while foreign ownership has a positive effect on the TFRs. The results of this study add to the limited literature about the effect of governance on the TFRs in the Middle East countries. The findings are also beneficial to companies and policymakers.