Non-Financial Indicators and Corporate Annual Reports

Abstract, This study aims at examining the role of non-financial indicators on revealing the financial failure of Jordanian Public Joint-Stock Companies, through the annual reports of companies. Four independent variables were specified: The age of the company, the delay in issuing the annual reports, and staffturnover, and the size of the company. The study population consisted of (82) industrial companies and it depended on the randomized sample. The sample taken out for the study consisted of 30% of the total study population. The researchers used multiple linear regression analysis, in order to determine the impact of the independent variables on the dependent variable, The study found that non-financial indicators after detecting faltering before it occurs variables that affect the prediction of a stalled companies, Based on the findings and conclusions researcher has proposed a series of recommendations including:1. Paying attention to the auditors and industrial companies and all interested groups a stalled corporate non-financial indicators.2. A study of some non-financial variables such as changing laws, especially tax law and the market value of the company, technological changes and corporate governance.Keywords- non-financial indicators, industrial joint-stock companies, Delinquency, Annual Reports.(ProQuest: ... denotes formula omitted.)1 INTRODUCTINCompanies face a lot of uncertainty conditions, which impose them find ways to help them survive, thus achieving success target, and established companies to stay and continue, therefore we must find ways to help those companies to survive. Figures Companies Control Department in Jordan that the cumulative number of companies that have been terminated until the end of June 2010 amounted to (28,808) Company total capital (545) million Jordanian dinars, and a large number of them were dissolution due to loss of the entire capital and the erosion of the rights of shareholders and mismanagement. From here emerged the importance of early detection of financial distress for companies, so with the advent of globalization and economic openness and crises caused by poor management practices have increased the importance of finding the means capable of detecting financial distress, showed in previous years that the economies of many countries have been stalled as a result of lack of means capable of revealed tripping which inflicted severe damage shareholders and creditors, suppliers and others, and as the faltering companies financial talk time, especially after the global financial crisis and the collapse of many large companies, without warning, it was necessary to search for non-traditional methods to help all sides to reveal the faltering before happen. The phenomenon of serious financial distress phenomenon exposed many businesses, both in the economically advanced countries or in economically developed countries, as a result of the exercise of corporate economic activity.The companies also take a lot of investment decisions such as expansion work, or borrowing or lending decisions and that may be the cause of tripping (Zubaidi,2002,p233)Contain financial statements that the numbers abstract, these figures useful, but that these figures contained in the financial statements may punctuated some of the mystery and misinformation, because of that some departments showing accounting data are misleading result manipulation process accounting measurement, in order to show the company is placed real therefore may appear financial indicators derived from those lists misleading, which requires the existence of studies based on the notes and other data issued by companies in order to reach the indicators is a financial post where by interested parties disclose stumble that control of the company you are able to continue to work or not, and the reliance on financial indicators only and ignore the non-financial indicators may make a gap in the detection of faltering companies have thus the presence non-financial indicators may be a complement to financial indicators fill the gap leading to obtain more accurate results in order to make decisions correction to reach the company to safety. …