The Effect of Applying Balanced Scorecard on Earnings Quality among Banks Listed in Palestine Exchange

Abdulnaser I. Nour; Layan W. Alamleh; Sameh M. Al-Atoot; Kamelia M.K Almomani

doi:10.24086/cuejhss.v6n1y2022.pp101-112

Abdulnaser I. Nour Faculty of Economics and Social Sciences, Department of Accounting, An-Najah National ‎University, Nablus, Palestine‎ https://orcid.org/0000-0001-8525-9799
Layan W. Alamleh College of Graduate Studies, Department of Accounting, An-Najah National University, Nablus, Palestine https://orcid.org/0000-0002-7246-2883
Sameh M. Al-Atoot Faculty of Economics and Social Sciences, Department of Accounting, An-Najah National ‎University, Nablus, Palestine‎ https://orcid.org/0000-0003-4391-3144
Kamelia M.K Almomani Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, ‎Malaysia https://orcid.org/0000-0001-8467-6910

DOI: https://doi.org/10.24086/cuejhss.v6n1y2022.pp101-112

Keywords: Balanced Scorecard, Earning Quality, Control Size, Palestine Exchange, Balance Scorecard Components

Abstract

This paper aims to verify the impact of applying balanced scorecard on earnings quality controlled by Firm (Bank) size of banks listed on Palestine Exchange during the 2011–2019 period. To achieve this objective, a panel model relating to the dependent variable (Earnings quality) and independent variables (Balanced Scorecard components) with the control variable (Firm Size) was estimated, the researchers used financial reports and disclosures of the banks listed on the Palestine Stock Exchange as a tool to collect data, in addition to books, articles, and the previous studies. Descriptive quantitative research design was employed because of the use of quantitative data as proxies for both independent and dependent variables. Panel research strategy was applied for obtaining the cross sectional and longitudinal dimensions. The relationships between the study variables (Earnings quality, BSC components, and Firm Size) were estimated using Eviews version 7 (a statistical software). The results showed statistically significant negative effect of Customer perspective (CUS) on Earnings Quality (EQ); statistically significant positive effect of Internal Business Process perspective (IBP) on Earnings Quality (EQ); and statistically significant positive effect of Firm Size (FS) on Earnings Quality (EQ). In addition, the results showed no statistically significant effect of financial perspective (FP), Social perspective (SP), Learning and Growth perspective (LG), and on Earnings Quality (EQ). Furthermore, the results demonstrated that Earnings Quality of banks listed on Palestine Exchange was not high.

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Author Biographies

Abdulnaser I. Nour, Faculty of Economics and Social Sciences, Department of Accounting, An-Najah National ‎University, Nablus, Palestine‎

Dr. Abdulnaser Professor in Accounting at the Department of accounting- Faculty of Economics and Social Sciences -An-Najah National University .Nablus, Palestine. He got the B.Sc.& M.Sc. and PhD in Accounting. His research interests are in Balance scorecard, Corporate governance, IFRS, and intellectual capital, Sustainability. Dr. Nour was Dean college of Business at Middle East University in Amman - Jordan and Dean Faculty of Graduate Studies in Zarqa University - Jordan also Dean of Business at Al-Ahliyya Amman University-Amman-Jordan. Has published more than 90 articles in both Arabic and English languages in local and international journals. Also, published 8 books in accounting fields.

Layan W. Alamleh, College of Graduate Studies, Department of Accounting, An-Najah National University, Nablus, Palestine

Layan Alamleh obtained her B/A in Accounting in 2016 from Hebron University, Master degree in Accounting in 2021 from Alnajah University- Palestine , and worked following her post-graduation at Beitula Municipality as a Financial Manager in Palestine, her research interests are in auditing, forensic accounting , managerial accounting especially in balanced scorecard topics .

Sameh M. Al-Atoot, Faculty of Economics and Social Sciences, Department of Accounting, An-Najah National ‎University, Nablus, Palestine‎

He is an assistant Professor in accounting department- Faculty of Economics and Social Sciences -An-Najah National University at Najah national university. He got a B.Sc, MSc.degree and PhD in accounting, also he is financial consultant many companies in Palestine. His research interests are in corporate Governance, and Cost Accounting

Kamelia M.K Almomani, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, ‎Malaysia

Miss Kamelia is a Lecturer at the Department of administrative science and computer department/ Accounting, Faculty of Zarqa College, Al-Balqa Applied University. She got the B.Sc. degree in Financial and Banking Science, the M.Sc. degree in Accounting and the Ph.D. degree in Accounting. Her research interests are in Intellectual capital, Sustainability and Cost Accounting

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