Determinants of Mandatory Corporate Governance : Evidence from an Emerging Market

This study investigates whether listed companies in Jordan comply with mandatory governance rules and explores factors that affect the governance compliance level. A checklist was designed to construct a governance index for each of 128 Jordanian listed companies that disclose the necessary data to calculate the variables under study. The results indicate that on average Jordanian listed companies comply with mandatory governance rules. This compliance depends on some crucial variables. Company size, profitability, age as a listed company on the ASE, size of the auditor and type of industry significantly affect the compliance level