Corporate Governance Effectiveness and Premature Revenue Recognition: The moderating role of Family Ownership

This study analyses the relationship between the corporate governance effectiveness CGEF and premature revenue recognition PRR in a sample of 160 Jordanian industrial ?rms over the 2017?2021 period. We measure the effectiveness of corporate governance through three sub variables; board size, CEO duality and Audit committee. We ?nd that the CEO duality and Audit committee has a negative and significant relationship with PRR, while board size had insignificant association with PRR. As for corporate governance effectiveness, the results reveal that corporate governance effectiveness contributes to reducing premature revenue recognition, in addition to the fact that family ownership plays a positive vital role as a moderating variable in enhancing the role of corporate governance in reducing premature revenue recognition. Thus, the study passes our recommendations to the Jordanian firms and policy and regulations makers to urge firms to preserve a high level of corporate governance effectiveness due to its role in preventing premature revenue recognition.