The Role of Forensic Accounting in Improving Governance Mechanisms through the Market Financial Indicators of Companies Listed on the Palestine Exchange

Purpose: This research investigates the role of forensic accounting in enhancing governance mechanisms through market financial indicators for companies listed on the Palestine Exchange. It focuses on litigation support, judicial investigations, legal support services, corporate governance, and market value.Study design/methodology/approach: The study utilized a quantitative analytical methodology. Hypotheses were tested using regression-based mediation analysis, employing a series of Ordinary Least Squares (OLS) regression models. Additionally, a moderated mediation analysis was conducted as a robustness check to ensure the reliability of the results.Sample and data: The research analyzes data from the financial statements of 35 companies listed on the Palestine Exchange.Results: The findings reveal a significant positive role of forensic accounting (litigation support, judicial investigations, and legal support services) in enhancing corporate governance mechanisms through market financial indicators. The study emphasizes the importance of transparency, accountability, and regulatory compliance in improving investor confidence and corporate performance.Originality/value: This study contributes to the literature by highlighting the application of forensic accounting in improving governance and market performance within a developing market context, specifically in Palestinian companies. It provides practical recommendations for fostering better governance practices through education and awareness initiatives.Research limitations/implications: The research is limited to a cross-sectional design and focuses on companies listed on the Palestine Exchange, emphasizing the need for further studies in diverse contexts and longitudinal designs to validate and expand the findings.