Does the Implementation of International Financial Reporting Standard 17 "Insurance Contracts" Enhance Financial Reporting Quality? Evidence from Palestine and Jordan رسالة دكتوراة

Abstract

This study aims to examine the impact of the implementation of International Financial Reporting Standard (IFRS) 17 “Insurance Contracts” on Financial Reporting Quality (FRQ) in listed insurance companies in Palestine and Jordan. The study was conducted in early 2026, approximately three years after the effective date of IFRS 17. It focused on assessing whether IFRS 17 achieved its objectives of enhancing transparency and comparability in financial reporting. The study adopts a quantitative empirical research design. Data were collected through a structured questionnaire distributed to a purposive sample of 294 professionals, including preparers of financial statements, external auditors, academics, and financial analysts. Financial reporting quality was examined through two key qualitative dimensions, transparency and comparability, consistent with the International Accounting Standards Board (IASB)’s Conceptual Framework. The analysis employed descriptive statistics, correlation analysis, multiple regression models, and Weighted Least Squares (WLS) to assess the relationship between IFRS 17 implementation and FRQ, and examine the effect of the controlling factor, years of experience of respondents. The results indicate that IFRS 17 implementation has a statistically significant positive impact on financial reporting quality in both countries. Transparency showed noticeable improvement, while comparability emerged as the strongest dimension in both contexts. Although the level of IFRS 17 implementation was found to be similar in Palestine and Jordan, differences in financial reporting quality outcomes were observed. Professional experience had a positive effect on the relationship between IFRS 17 implementation and FRQ in Palestine, whereas no significant effect was found in Jordan. The study recommends maintaining compliance with IFRS requirements, strengthening professional training, enhancing reporting systems, and improving institutional frameworks to support effective implementation of IFRS 17. Furthermore, the study suggests expanding research, such as examining the impact of IFRS 17 on the financial performance and risk management of insurance companies, as well as its impact on the non-insurance sector