The Impact of Accounting Information Quality on Reducing Financial Risks at Commercial Banks Listed at Amman Stock Exchange

Abstract

This research examined how accounting information quality (relevance, truthful representation) reduces financial risks (credit risk, liquidity risk) in Amman Stock Exchange-listed commercial banks.  The descriptive technique was used to characterize the research variables (quality of accounting information and financial hazards) and show how commercial banks might lower them.  The researcher collected data from original sources.  The survey included Amman Stock Exchange-listed commercial banks.  All 323 electronic surveys completed by commercial bank employees were valid for analysis.  The research hypotheses were tested using SPSS/V23 linear regression.  The findings demonstrated that accounting information quality (relevance, truthful representation) reduces credit and liquidity risk in commercial banks.  The report advised commercial banks to upgrade their information systems to get high-quality data, which helps regulate and reduce financial risks.