Disclosure of Organizational Ambidexterity Activities and Earnings Quality in Oman

• Published in: International Journal of Professional Business Review Vol. 8; no. 5; p. e01393
• Main Authors: AL Ani, Mawih Kareem, Al-Lawati, Hidaya Mustafa, AL Amri, Musallam Mohammed
• Format: Journal Article
• Language: English
• Published: 22.05.2023
• Subjects: Earnings Quality; Oman; Organizational Ambidexterity; Organizational Ambidexterity Dis¬closure; Persistence; Value Relevance
• ISSN: 2525-3654; 2525-3654
• DOI: 10.26668/businessreview/2023.v8i5.1393

Purpose: This study examines the association between organizational ambidexterity disclosure (OAD) and earnings quality (EQ) in terms of earnings persistence (PER) and value relevance (VR).   Theoretical framework: Organizational ambidexterity disclosure (OAD) is one type of forward-looking disclosure (FLD) which includes all information about exploration and exploitation activities. In accounting, the study is interested in how (OAD) affects the firm’s earnings quality.   Design/methodology/approach: This study uses the secondary data of non-financial industrial and services firms listed on the Muscat Securities Market (MSX) in Oman for a 5-year period from 2017–2021. The study uses generalized least square (GLS) and feasible general least squares (FGLS) regressions to test the hypotheses and find the results.   Findings: Results of the GLS and the robust results of FGLS show that OAD has a positive and significant effect on earnings persistence (PER) and value relevance (VR) and the coefficient of VR is stronger than the coefficient of PER, indicating the importance of OAD on the earnings quality as new evidence in the area of accounting.   Research Implications: The results provide crucial implications for researchers, investors, policy makers and managers. The study provides potential leverage points for those responsible for shaping the disclosure and transparency because of it insights on when OAD impacts EQ.   Originality/value: This study offers a novel resource-based perspective to explain how Omani firms achieve higher sustainable and value relevance earnings by investing in OA. It also provides new evidence about how an ambidextrous firm improves the sustainable and value relevance earnings.