The impact of corporate governance on compliance with corporate laws in public shareholding companies of Jordanian and Emirati companies

Abstract

The purpose of this study is to investigate the impact of corporate governance on compliance with corporate laws in public shareholding companies. This empirical study focuses on Jordanian and Emirati companies. It adopts a quantitative approach to examine the relationship between the implementation of corporate governance practices and the level of legal compliance. The research design is cross-sectional, utilizing a structured questionnaire distributed among key managerial and compliance personnel within selected public shareholding companies in Jordan and the United Arab Emirates. The sample size consisted of 490 respondents. All hypotheses in the model were found to be statistically significant (p < 0.05), providing full empirical support for the proposed relationships. Notably, the t-values for disclosure transparency and internal control effectiveness are particularly high, indicating that these dimensions have the most substantial influence on legal compliance within public shareholding companies. Based on these findings, the study recommends strengthening board independence and ensuring that audit committees are active, qualified, and fully independent to provide effective oversight. Additionally, establishing stronger and more transparent audit committees is crucial for enhancing compliance monitoring with corporate laws.