The Changes of Disclosure in Compliance with the New Regulations in Jordan

The study investigates the differences in the disclosure practices (mandatory and voluntary) for 60 Jordanian companies listed in Amman Stock Exchange (ASE), before the regulations (1996) and after (2003). The evaluation is conducted using the mandatory and voluntary indices. Furthermore, the relationship between mandatory and voluntary disclosure will be tested in order to determine the effect of mandatory disclosure on the level of voluntary disclosure. The study adopted a sequential explanatory triangulation design which incorporated both quantitative and qualitative data collection and analysis. Various statistical techniques (e.g. paired sample t-test and Wilcoxon signed rank test) were employed using a matched pairs sample (60 companies) in 1996 and 2003. The results indicate that there was a significant increase in the level of mandatory disclosure for Jordanian companies in 2003 compared with 1996. However, the level of voluntary disclosure did not differ significantly for Jordanian companies in the periods, 1996 and 2003. In addition, the findings revealed a significant positive association between mandatory and voluntary disclosure for Jordanian companies. Thus, it could be concluded that the new regulations affect positively the level of voluntary disclosure. Finally, the interview results suggested that extensive regulation may improve the level of disclosure, with the provision that too many regulations could be a burden or source of confusion for companies.