International diversification, audit quality and firm value of Jordanian Public Listed Firm

Yazan Yaseen Yousef Alsmairat, Wan Sallha Yusoff, Mohd Fairuz, Mohd Fairuz Md. Salleh, Norida Basnan

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study examines the moderating role of audit quality on the relationship of international diversification and firm value of Jordanian Public Listed Firm that is listed on Amman Stock Exchange in 2016. The data is compared between financial and non-financial industries. We chose data from Public Listed Firm in Jordan because the findings contribute to the phenomena of the diversification and firm value relationship in the MENA countries. We apply agency theory to explain the importance of mitigating agency cost in international location decisions. By using regression analysis, we find that international diversification negatively influences the firm value of Jordanian diversified firms. Even though there are insignificant results on the role of audit quality but it shows a positive coefficient value. Thus it is open for further discussion. Overall, this paper suggests that in order to diversify globally, it is necessary for the manager in the guest country to evaluate and fully understand the host country's characteristics.

Original languageEnglish
JournalAcademy of Accounting and Financial Studies Journal
Volume22
Issue numberSpecialissue
Publication statusPublished - 1 Apr 2018

Fingerprint

Firm value
International diversification
Audit firms
Audit quality
Agency costs
Diversification
Regression analysis
Host country
Diversified firms
Coefficients
Jordan
Managers
Agency theory
Location decision
Middle East and North Africa
Stock exchange
Industry

Keywords

  • Amman stock exchange
  • Audit firm size
  • Firm value
  • Global diversification

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

Cite this

International diversification, audit quality and firm value of Jordanian Public Listed Firm. / Alsmairat, Yazan Yaseen Yousef; Yusoff, Wan Sallha; Fairuz, Mohd; Md. Salleh, Mohd Fairuz; Basnan, Norida.

In: Academy of Accounting and Financial Studies Journal, Vol. 22, No. Specialissue, 01.04.2018.

Research output: Contribution to journalArticle

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