Abstract:
Corporate governance practices within corporations have an effect on both the credibility of financial information and stockholders' rights. The purpose of this study is to examine the corporate governance procedures taken by management to protect stockholders' rights, transparency of information, and disclosure of important information to the stockholders of Jordanian corporations. A survey questionnaire was distributed to a representative sample of 150 investors of whom 116 (77%) completed and returned it. The findings reveal that management is taking the necessary procedures to protect stockholders' rights and ascertain their fair treatment at a moderate level. In addition, differences are found in the disclosure and transparency of necessary information to individual and corporate investors. In other words, management is found to treat corporate and individual investors differently by only disclosing the necessary information with a high degree of transparency to corporate investors and stockholders. Based on these findings, relevant recommendations are put forth.
