Yousef Abu-Siam

Applied Science Private University, Amman, Jordan (


Mohammed Idris

Applied Science Private University, Amman, Jordan (


Mohammed Jibreel

Applied Science Private University, Amman, Jordan (m_jibril


Majed Qabajeh

University of Petra, Amman-Jordan (



Purpose: The current work explores the availability of any variance in the relationship amongst the directors’ board, the earnings management, and the effectiveness of the audit committee of the family and non-family-owned companies in Jordan.

Design/methodology/approach: A panel dataset consisting of numerous observations on the same economic units is used. Each element includes two subscripts, the group identifier, i (63 firms listed on ASE), and inside the group index represented by t that categorizes time from 2014 to 2020. Thanks to the Hausman and Breusch-Pagan (LM) tests’ verification of the appropriateness of the random-effects model, it is used to construct the regression model in this research paper.

Findings: This study demonstrates that the relationship concerning the effectiveness of the directors’ board and earnings management is significant and negative for the entire sample and non-family companies. This association yet is insignificant and weak for family companies. Furthermore, the current work demonstrates that the audit committee’s effectiveness significantly affects the management of earnings as gleaned from the whole and family sample. However, it is found that it is insignificant for non-family companies.

Originality/ Value: The current research paper studies the Jordanian firms chiefly featured with common family ownership control. As gleaned from a framework theorized based on the agency theory, the use of data from Jordan assists in comparing family and non-family firms concerning the effect of the directors’ board and the characteristics of the audit committee as a compound measure. Their combined impact on earnings management is attained by this compound measure.

Keywords: Earnings management, Jordan, family and non-family firms, the effectiveness of the board of directors and audit committee.