Resumen de The Impact of Tax Legislation on Public Shareholding Companies Tax Disclosure: A Comparative Study Between the Jordanian Tax System and the U.S. Tax System (State of Illinois)

Adel Mohammed Qatawneh, Ayman Bader, Khalid Thaher Amayreh

• Purpose: the purpose of this study is to examine the impact of tax legislation frequency and awareness on tax disclosures in publicly held companies in Jordan and the USA.

    Theoretical Framework: the study utilizes a theoretical framework that considers the transparency, tax evasion, and availability of financial resources to the companies. The research employs an analysis of peer-reviewed journals and reports to explore the interaction between these variables.

    Findings: the findings reveal that frequent changes in tax legislation reduce awareness levels but have no significant effect on transparency. Companies tend to prefer minimal disclosures rather than making extensive reports. Controlled policy changes enable companies to adjust their practices and influence the availability of resources. Increased awareness of tax policies enhances corporate understanding, but its impact on transparency is limited unless there is a mandatory requirement. Higher levels of awareness also contribute to reduced corporate evasion and improved availability of financial resources.

    Implications of the research: the study has implications for tax legislators, providing insights into developing more effective tax legislation that enhances disclosures.

    Originality/value: It highlights the importance of considering other moderating factors that influence policy effectiveness across different countries.