Role of Bank Characteristics in Determining the Effect of Non-financial Information Disclosure on Bank’s Value on Tobin’s Q Scale: An Applied Study on the Jordanian Commercial Banks

Abstract

This study aimed at determining the role of bank characteristics in determining the effect of non-financial information disclosure on values of Jordanian commercial banks on Tobin’s q scale. To achieve this goal, the study adopted the analytical descriptive research approach and analyzed the financial reports of the 13 Jordanian commercial banks listed on Amman Stock Exchange Market (ASEM) during the period 2014-2017. To test the hypotheses and achieve the study goal, the data were analyzed using simple linear regression analysis and hierarchical interaction regression analysis. Regression analysis revealed that all the studied commercial banks disclose the non-financial information according to the instructions of institutional governance of the banks. In addition, the analysis showed that there is a positive effect of non-financial disclosure on the values of banks on Tobin’s q scale. Moreover, the results uncovered that the interaction effects of non-financial information disclosure and each of the size, growth, and profitability of the bank foster the positive effects of the individual variables on the values of the banks on Tobin’s q scale. Meanwhile, the study found that the interaction effect of non-financial information disclosure and financial leverage does not affect the values of the banks on Tobin’s q scale.