Transparency of accounting disclosure on the quality of financial reporting in (ESG) - the impact of applying sustainability standards for companies listed on the Amman Stock Exchange

Abstract

With the new global trend of transparency and systematic institutionalization, sustainability and environmental, social and governance (ESG) criteria have become a pivotal element in evaluating the performance of companies, especially in the markets. environmental, social, and governance (ESG) criteria have become a pivotal element in evaluating the performance of companies, especially in financial markets. Therefore, the content of companies' annual reports (2022-2024), questionnaires addressed to finance and sustainability managers and transparency indicators were analyzed. A questionnaire was directed to 260 specialists and analyzed by statistical tools (SPSS22), where a regression analysis was performed to measure the relationship between (the accuracy of disclosure of environmental and social risks and governance where 65.8% of the sample considered that there is high transparency of disclosure of the financial impacts of environmental and social practices while 20.2% considered it low and 14% considered it non-existent. 71.7% considered that modern accounting disclosure requirements affect the quality of sustainability financial statements very significantly, while 18.3% considered their impact to be weak or moderate. Recommendations have been made to improve the implementation of ESG and financial transparency in companies listed on the Amman Stock Exchange (ASE). The implementation of transparency and sustainability standards will improve the performance of companies, give more credibility to companies and improve the market value of their shares.