The Evolution of Corporate Governance in Jordan: A Study of Pre- and Post-2017 Reforms

  • Received September
     11, 2024; Accepted November 26, 2024; Published November 28, 2024
  • Author(s): Husam Ananzeh
  • Doi: 10.70568/TBP.IJDAFS1.2.3.2024

Abstract:

Good corporate governance is, in essence, very important in designing both global trends of transparency and accountability that assure business performance. Good results include updating Jordan’s regulatory framework in 2017 with the best international practice; this was a pivotal milestone in developing Jordanian corporate governance. The study examines the changes in Jordan’s corporate governance practices before and after 2017, focusing on the regulatory environment, organizational compliance, and market outcomes. The results show that implementing the new corporate governance code leads to enhancements in the rights of shareholders, the dynamics of the board, and the financial performance of the firms. The results make a strong case for good governance frameworks to facilitate sustainable economic development in emerging economies. With these challenges in mind, Jordan should continue its efforts and strengthen its corporate governance system. By doing so, Jordan will set an example for the regional emerging markets by showing its commitment to good governance practices. The enhancement will help the business environment and attract foreign investments that might bring along economic development. In this respect, reforms brought under Jordan’s Corporate Governance Code 2017 have been instrumental in improving corporate governance practices, increasing transparency, and building confidence in investors. Challenges persist, though, and Jordan needs a proactive approach to address them. Through such means, Jordan will be able to move further toward an improved corporate governance framework that can be aspired to by other emerging markets in the region.