Purpose

This study aims to empirically examine whether the political connection is related to risk disclosure practices. The study also seeks to contribute to the existent risk disclosure literature by investigating the moderator effect of family ownership on this relationship.

Design/methodology/approach

The content analysis approach was used to collect data and determine the level of risk disclosure over the non-financial Jordanian firms listed on 1Amman Stock Exchange. The sample of this study contains 376 annual reports over four years from 2014 to 2017. It used the random effect regressions to examine the hypothesis of the study.

Findings

The results show that politically connected companies disclose less risk information than the unconnected ones in Jordan. The results also refer that family ownership contributes in mitigating the negative effect of the political connection on the level of corporate risk.

Practical implications

The results have implications for regulatory institutions such as the Jordan Securities Commission to take the negative effect of political connection in their consideration and impose further regulations to monitor this board’s attribute and control politicians’ domination on the board decisions.

Originality/value

The current study also contributes to the body of literature by investigating the effects of the political connections on the level of risk disclosure in the financial reports. To the best of the authors’ knowledge, the current study is the first to examine the effect of the political connection on the risk disclosure practices. Moreover, the study is among the first studies that examine the moderating role of family ownership on such relationship.

中文翻译：

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政治联系、家族所有权和公司风险披露：来自约旦的经验证据

目的

本研究旨在实证检验政治联系是否与风险披露实践有关。该研究还试图通过调查家庭所有权对这种关系的调节作用，为现有的风险披露文献做出贡献。

设计/方法/方法

内容分析方法用于收集数据并确定在 1Amman 证券交易所上市的非金融约旦公司的风险披露水平。本研究的样本包含 2014 年至 2017 年四年间的 376 份年度报告。它使用随机效应回归来检验研究假设。

发现

结果表明，在约旦，政治关联公司披露的风险信息少于非关联公司。结果还表明，家族所有权有助于减轻政治联系对公司风险水平的负面影响。

实际影响

研究结果对约旦证监会等监管机构在考虑政治关联的负面影响时采取进一步的监管措施以监控该董事会的属性和控制政治家对董事会决策的支配具有启示意义。

原创性/价值

目前的研究还通过调查政治联系对财务报告中风险披露水平的影响，对文献主体做出了贡献。据作者所知，目前的研究是第一个检验政治联系对风险披露实践的影响的研究。此外，该研究是最早研究家庭所有权对这种关系的调节作用的研究之一。