Abstract:
This paper examined conservative accounting and the influence of board effectiveness along with audit committee on the level of accounting conservatism among Jordanian listed firms. The findings obtained from 348 firm-year observations over the period from 2009 to 2011 evidenced the absence of accounting conservatism, which indicates that Jordanian firms have low level of financial reporting quality. Furthermore, our analyses pointed out that the board effectiveness along with audit committee contribute positively and significantly in strengthening the conservatism principle among Jordanian firms in order to enhance the quality of financial reporting. Therefore, this paper concluded that board of directors should be effective in protecting the shareholders' interest.
