Resumen de Corporate Tax Features in Jordan Affecting Business Decisions: Strengthening Finance Accountability in Emerging Economies

Mamoun Shakatreh, Ahmad Moh’d Ahmad Mansour, Zakarya A. Alatyat

• Purpose: This paper attempted to evaluate the attributing factors of corporate tax that impact and influence the financial decision-making of the businesses of Jordan. The attributes of mandatory disclosure of Jordan and opportunities in the financial report have been comprehensively discussed to analyze the financial accountability factor.

    Theoretical framework: the paper discussed the hypotheses related to the features of corporate tax that impact the business decisions in Jordan, the sectors of financial accountability in emerging markets, the link between corporate governance and financial reports, and the connection between attributes of taxpayers and VAT compliance.

    Design/methodology/approach: the descriptive type of research design is implemented to follow both qualitative and quantitative methods of research. The data were measured and evaluated using correlation, and regression to understand the link and connection between the research variables.

    Findings: it can be concluded that there are various factors that impact the decision-making of the businesses in corporations such as the size of the business. Also, there is in rising opportunity for the financial reports and a link between the attributes of the taxpayers and VAT compliance. Moreover, the accounting framework of Jordan is also discussed comprehensively and the strategies that are followed for mandatory disclosure of businesses in Jordan or also discussed. Among the factors, the agency cost and profitability together with financial leverage also have an impact on the decision-making of the businesses.

    Research, Practical & Social implications: the stance of financial accountability in emerging economies like Jordan is being discussed with in-depth understanding.

    Originality/value: identifying the features of corporate tax that impact the business decisions in Jordan, understanding the sectors of financial accountability in emerging markets, identifying the link between corporate governance and financial reports, understanding the connection between attributes of taxpayers and VAT compliance.