Understanding Jordanian corporate reporting regulation change using strong structuration theory. Issue 4 (12th November 2018)

• Record Type: Journal Article
• Authors: Al-Htaybat, Khaldoon
• Is Part Of: Journal of applied accounting research. Volume 19:Issue 4(2018)
• Page Start: 483
• Page End: 499
• Publication Date: 2018-11-12
• Subjects: IFRS adoption -- Strong structuration theory -- Accounting regulation -- Stones; Accounting -- Periodicals; Accounting -- Research -- Periodicals; 657.072
• DOI: 10.1108/JAAR-07-2016-0071
• Languages: English
• ISSNs: 0967-5426

Abstract

Abstract : Purpose: The purpose of this paper is to investigate the change of the Jordanian corporate reporting requirements in 1998. The reasons as to why International Financial Reporting Standards (IFRS) were adopted in Jordan are outlined on the basis of strong structuration theory's (SST) quadripartite structure. Design/methodology/approach: This study is interpretive, as perceptions of the study's participants are analysed regarding the adoption of IFRS in emerging economies. Semi-structured interviews were undertaken to collect Jordanian experts' perceptions. The study uses elements of Stones' strong structuration to illustrate and analyse the current study's data. Findings: The analysis illustrated that various elements pushed for the adoption of IFRS in Jordan – external structures that cause adoption of IFRS are the Gulf War and the immediate impact this had on Jordan. The internal structures seek to adopt new regulation in order to protect and support the Jordanian economy, which is part of agents-in-focus' dispositions, and gain foreign direct investment. Agents-in-focus found that some corporations comprehended the needs of external investors, thus, sought to provide such information voluntarily. Research limitations/implications: A limitation of this paper is the number of participants, which for future studies needs to be considered. Practical implications: Reasons as to why new regulation is adopted are illustrated, which can support other countries seeking to do adopt new corporate reporting rules. Originality/value: This study contributes to the sparse body of studies using SST in financial accounting. It is also one of the few studies investigating the change of regulation and the reasons for this adoption in the Middle Eastern and Jordanian context, in an interpretive study.