From 2013 to 2022, an exploration was conducted to unveil how much accounting hedging disclosure amounts could impact the financial performance of Amman Stock Exchange’s commercial banks. The main concern lies in the significance of financial performance in predicting a firm’s sustainability and lasting functionality. Taking a close look at how commercial banks listed on the Amman Stock Exchange are employing accounting hedging as a tactic for mitigating financial risks is crucial. Determining the degree to which these banks are revealing such practices in accordance with IFRS No.7, also known as “Financial Instruments: Disclosures”, is equally important. To evaluate these practices, the researcher used a descriptive-analytical approach and processed data using the SPSS tool. The findings of the study suggested that the level of disclosure of accounting hedging practices have substantial positive impacts on both the earnings per share and return on equity metrics. The Amman Stock Exchange could benefit immensely from complying with accounting hedging disclosure requirements, as a significant finding shows that such disclosure has a positive impact on earnings per share and return on equity. In contrast, the researcher discovered that low levels of accounting hedging disclosure detrimentally affect the return on assets, revealing a need for decision-makers to take steps to improve the situation. It is important for investors to take note of these findings and factor them into their decisions, in order to avoid relying too heavily on debt to finance assets.

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The Effect of the Financial Statements’ Hedging Disclosure Level on Financial Performance Among Stock Exchange-Listed Commercial Banks

  • Faten Amin Mousa Al-Naimi

摘要

From 2013 to 2022, an exploration was conducted to unveil how much accounting hedging disclosure amounts could impact the financial performance of Amman Stock Exchange’s commercial banks. The main concern lies in the significance of financial performance in predicting a firm’s sustainability and lasting functionality. Taking a close look at how commercial banks listed on the Amman Stock Exchange are employing accounting hedging as a tactic for mitigating financial risks is crucial. Determining the degree to which these banks are revealing such practices in accordance with IFRS No.7, also known as “Financial Instruments: Disclosures”, is equally important. To evaluate these practices, the researcher used a descriptive-analytical approach and processed data using the SPSS tool. The findings of the study suggested that the level of disclosure of accounting hedging practices have substantial positive impacts on both the earnings per share and return on equity metrics. The Amman Stock Exchange could benefit immensely from complying with accounting hedging disclosure requirements, as a significant finding shows that such disclosure has a positive impact on earnings per share and return on equity. In contrast, the researcher discovered that low levels of accounting hedging disclosure detrimentally affect the return on assets, revealing a need for decision-makers to take steps to improve the situation. It is important for investors to take note of these findings and factor them into their decisions, in order to avoid relying too heavily on debt to finance assets.