Auditor Choice

Auditor selection can be regarded as a matter of audit quality. Research studies aiming to model the auditor choice employ statistical techniques. Here we employ three techniques derived from the Data Mining domain to build models capable of discriminating cases where companies choose a Big 4 or a Non-Big 4 auditor. Significant factors associated with the auditor choice are revealed. The three models are compared in terms of their performances. According to 10-fold cross validation bagging increases significantly ...

In this paper, we examine the impact of CEO power on auditor choice. We are motivated by the competing financial reporting incentives arising from CEO power. Our empirical finding suggests that powerful CEOs are more likely to hire high-quality auditors as a signal of superior financial reporting quality. We contribute to the literature of auditor switch and extend the research on the links between CEO power and firm behaviors.

Purpose This paper aims to investigate the relationship between key audit matters (KAMs) and audit costs and whether board size and independence affect this relationship. Furthermore, this paper examines the moderating effect of corporate governance on the relationship between KAMs and audit costs. Design/methodology/approach The authors hypothesise that disclosing more KAMs in the audit report is positively associated with audit costs because of the greater effort. The agency theory suggests that firms with good governance will mitigate the agency conflict of interest and improve financial reporting quality. Thus, good governance might moderate the relationship between reported KAMs and audit costs. The authors use a quantitative approach. The authors are using a sample of the UK FTSE all-share non-financial firms from 2014 to 2018 for the UK Financial Times Stock Exchange all-share non-financial firms. Findings The authors provide evidence of a significant positive relationship be...

Purpose The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the Egyptian Exchange (EGX) at two points in time – December 2010 (pre) and December 2013 (peri) political and social unrest in Egypt. Design/methodology/approach The study developed a disclosure index to determine the extent of CIR practices among all non-financial companies listed on the EGX in December 2010 and December 2013. The study uses ordinary least squares (OLS) regressions and isometric log-ratio transformations for compositional independent variables to empirically examine the factors affecting CIR in Egypt using a modern institutional theory lens. Findings The findings of this investigation suggest that listed companies in Egypt have started embracing the power of the internet as a disclosure channel, but the extent of these practices increased significantly over the investigated period, with ...

Purpose This paper aims to investigate the relationship between key audit matters (KAMs) and audit costs and whether board size and independence affect this relationship. Furthermore, this paper examines the moderating effect of corporate governance on the relationship between KAMs and audit costs. Design/methodology/approach The authors hypothesise that disclosing more KAMs in the audit report is positively associated with audit costs because of the greater effort. The agency theory suggests that firms with good governance will mitigate the agency conflict of interest and improve financial reporting quality. Thus, good governance might moderate the relationship between reported KAMs and audit costs. The authors use a quantitative approach. The authors are using a sample of the UK FTSE all-share non-financial firms from 2014 to 2018 for the UK Financial Times Stock Exchange all-share non-financial firms. Findings The authors provide evidence of a significant positive relationship be...

Auditor selection can be regarded as a matter of audit quality. Research studies aiming to model the auditor choice employ statistical techniques. Here we employ three techniques derived from the Data Mining domain to build models capable of discriminating cases where companies choose a Big 4 or a Non-Big 4 auditor. Significant factors associated with the auditor choice are revealed. The three models are compared in terms of their performances. According to 10-fold cross validation bagging increases significantly the performance of one classifier.

Purpose The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the Egyptian Exchange (EGX) at two points in time – December 2010 (pre) and December 2013 (peri) political and social unrest in Egypt. Design/methodology/approach The study developed a disclosure index to determine the extent of CIR practices among all non-financial companies listed on the EGX in December 2010 and December 2013. The study uses ordinary least squares (OLS) regressions and isometric log-ratio transformations for compositional independent variables to empirically examine the factors affecting CIR in Egypt using a modern institutional theory lens. Findings The findings of this investigation suggest that listed companies in Egypt have started embracing the power of the internet as a disclosure channel, but the extent of these practices increased significantly over the investigated period, with ...

Purpose The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the Egyptian Exchange (EGX) at two points in time – December 2010 (pre) and December 2013 (peri) political and social unrest in Egypt. Design/methodology/approach The study developed a disclosure index to determine the extent of CIR practices among all non-financial companies listed on the EGX in December 2010 and December 2013. The study uses ordinary least squares (OLS) regressions and isometric log-ratio transformations for compositional independent variables to empirically examine the factors affecting CIR in Egypt using a modern institutional theory lens. Findings The findings of this investigation suggest that listed companies in Egypt have started embracing the power of the internet as a disclosure channel, but the extent of these practices increased significantly over the investigated period, with ...

Corporate governance is an important element in monitoring the process of financial reporting system. There are three monitoring mechanisms that are theoretically used to ensure the credibility of corporate governance, namely, external auditor, an internal auditing and the directorships. The trends of corporate governance model in developed countries cannot explain the reality of monitoring process of financial reporting in developing countries especially in Asian countries like Malaysia. Therefore, it is important to know to what extent the corporate governance of the Malaysian listed companies has been effective in meeting the responsibility of monitoring the process of financial reporting system? Generally, this study intended to examine an effective component of corporate governance in a Malaysian listed companies and relationship with the audit quality. A total of 655 companies were selected as the sample representing 73.84% of total number of companies across industries in yea...

Purpose The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the Egyptian Exchange (EGX) at two points in time – December 2010 (pre) and December 2013 (peri) political and social unrest in Egypt. Design/methodology/approach The study developed a disclosure index to determine the extent of CIR practices among all non-financial companies listed on the EGX in December 2010 and December 2013. The study uses ordinary least squares (OLS) regressions and isometric log-ratio transformations for compositional independent variables to empirically examine the factors affecting CIR in Egypt using a modern institutional theory lens. Findings The findings of this investigation suggest that listed companies in Egypt have started embracing the power of the internet as a disclosure channel, but the extent of these practices increased significantly over the investigated period, with ...

Purpose: This paper examines the link between audit(or) type and restatements in Egypt, a complex and multi-faceted auditing market. The usual Big 4 vs. non-Big 4 comparison is insufficient as Egypt has a unique mix of private audit firms, one governmental agency (ASA), and mandatory/non-mandatory audit services, including single, joint, and dual audits. Design/methodology/approach: The study uses a sample of listed companies in Egypt and analyzes the impact of auditor type and audit type on explicit, implicit, and total restatements. The study uses logistic regression model to examine the underlying relationship. Results: Results show no relationship between auditor type and audit quality, positive association between non-Big foreign CPA firms and total/implicit restatements, and mixed results for the impact of dual audits on audit quality. The study found no link between auditor type and audit quality in Egypt. Egyptian audit firms linked to non-Big 4 foreign CPA firms were positively linked to total and implicit restatements. Joint audits did not improve audit quality and were directly related to total and explicit restatements. Dual audits showed mixed results, positively associated with implicit restatements but inversely associated with explicit restatements. Originality/value: The study provides valuable insights into the complexities of the auditing market in emerging markets and offers valuable insights for stakeholders in the financial statement users, audit firms, and governmental agencies.

Purpose The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the Egyptian Exchange (EGX) at two points in time – December 2010 (pre) and December 2013 (peri) political and social unrest in Egypt. Design/methodology/approach The study developed a disclosure index to determine the extent of CIR practices among all non-financial companies listed on the EGX in December 2010 and December 2013. The study uses ordinary least squares (OLS) regressions and isometric log-ratio transformations for compositional independent variables to empirically examine the factors affecting CIR in Egypt using a modern institutional theory lens. Findings The findings of this investigation suggest that listed companies in Egypt have started embracing the power of the internet as a disclosure channel, but the extent of these practices increased significantly over the investigated period, with ...

The primary objective of this study is to test a theoretical framework relating eight major corporate governance determinants with the extent of voluntary disclosure provided by listed firms listed on Egyptian Stock Exchange (EGX). These corporate governance determinants are firm size, firm profitability, firm leverage, board size, independent directors, duality in position, block-holder ownership and Auditor Type. Using a weighted relative disclosure index for measuring voluntary disclosure, the results indicate that there is a positive significant correlation between firm size, firm profitability, firm leverage, independent directors in board, and auditor type, and the overall corporate governance voluntary disclosure extent. This result implies that these variables are the main voluntary disclosure drivers in Egypt. However, a negative significant correlation was found between Block-holder ownership and voluntary disclosure, while no significant correlation was found between board size, and Duality in position, and the overall corporate governance voluntary disclosure extent. The empirical proof from this study promotes the perception of the voluntary corporate disclosure environment in Egypt as one of the emerging markets in the Middle East.

Purpose The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the Egyptian Exchange (EGX) at two points in time – December 2010 (pre) and December 2013 (peri) political and social unrest in Egypt. Design/methodology/approach The study developed a disclosure index to determine the extent of CIR practices among all non-financial companies listed on the EGX in December 2010 and December 2013. The study uses ordinary least squares (OLS) regressions and isometric log-ratio transformations for compositional independent variables to empirically examine the factors affecting CIR in Egypt using a modern institutional theory lens. Findings The findings of this investigation suggest that listed companies in Egypt have started embracing the power of the internet as a disclosure channel, but the extent of these practices increased significantly over the investigated period, with ...

Purpose The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the Egyptian Exchange (EGX) at two points in time – December 2010 (pre) and December 2013 (peri) political and social unrest in Egypt. Design/methodology/approach The study developed a disclosure index to determine the extent of CIR practices among all non-financial companies listed on the EGX in December 2010 and December 2013. The study uses ordinary least squares (OLS) regressions and isometric log-ratio transformations for compositional independent variables to empirically examine the factors affecting CIR in Egypt using a modern institutional theory lens. Findings The findings of this investigation suggest that listed companies in Egypt have started embracing the power of the internet as a disclosure channel, but the extent of these practices increased significantly over the investigated period, with ...

Recent financial international scandals around the world have led to a number of investigations into the effectiveness of corporate governance practices and audit quality. Although evidence of corporate governance practices and audit quality exists from developed economies, very scanty studies have been conducted in Egypt where corporate governance is just evolving. Therefore, this study provides evidence on the effectiveness of corporate governance practices and audit quality from a developing country. The data for analysis are gathered from the top 50 most active companies in the Egyptian Stock Exchange, covering the three year period 2007-2009. Logistic regression was used in investigating the questions that were raised in the study. Findings from the study show that board independence; CEO duality and audit committees significantly have relationship with audit quality. The results also, indicate that institutional investor and managerial ownership have no significantly relationship with audit quality. Evidence also exist that size of the company; complexity and business leverage are important factors in audit quality for companies quoted on the Egypt Stock Exchange.

Purpose The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the Egyptian Exchange (EGX) at two points in time – December 2010 (pre) and December 2013 (peri) political and social unrest in Egypt. Design/methodology/approach The study developed a disclosure index to determine the extent of CIR practices among all non-financial companies listed on the EGX in December 2010 and December 2013. The study uses ordinary least squares (OLS) regressions and isometric log-ratio transformations for compositional independent variables to empirically examine the factors affecting CIR in Egypt using a modern institutional theory lens. Findings The findings of this investigation suggest that listed companies in Egypt have started embracing the power of the internet as a disclosure channel, but the extent of these practices increased significantly over the investigated period, with ...

Purpose The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the Egyptian Exchange (EGX) at two points in time – December 2010 (pre) and December 2013 (peri) political and social unrest in Egypt. Design/methodology/approach The study developed a disclosure index to determine the extent of CIR practices among all non-financial companies listed on the EGX in December 2010 and December 2013. The study uses ordinary least squares (OLS) regressions and isometric log-ratio transformations for compositional independent variables to empirically examine the factors affecting CIR in Egypt using a modern institutional theory lens. Findings The findings of this investigation suggest that listed companies in Egypt have started embracing the power of the internet as a disclosure channel, but the extent of these practices increased significantly over the investigated period, with ...

This paper investigates the adoption of hedge accounting by Malaysian listed companies in reporting their use of derivatives for hedging activities. Based on a sample of 300 Malaysian listed companies, we found that only 162 companies (54 percent) used derivatives to hedge their financial risks exposure and only 30 percent of the companies chose to apply hedge accounting. In addition, this study examines the relationship between the company specific characteristics and their application of hedge accounting. The logistic regression results showed that the decision to apply hedge accounting by Malaysian companies is positively influenced by the company size and leverage. The implications of the findings were discussed.

The aim of this paper is to investigate the determinants of firm's auditor choice in Malaysia in respect of their corporate governance mechanisms. A logit regression model was developed to test the impact of firms' internal corporate governance mechanism on auditor choice decisions made by public listed companies listed on main board of Bursa Malaysia from year 2006 to 2015. Five variables are used to proxy for firm's internal corporate mechanism which are the ownership concentration, the duality of CEO and chairman of BOD, the size of audit committee, the size of BOD and the number of independent directors on the board. All auditors in Malaysia were classified into Big Four and non-Big Four, assuming Big Four auditors can provide higher quality audit services. The final result show that firms with less concentrated ownership, with larger size of audit committee, larger size of the BOD, with lower proportion of independent directors on the board, or in which CEO and BOD's chairman are not the same person are more likely to hire a high-quality auditor. Hence, it suggests that when benefits from lowering capital raising costs are trivial, firms with good corporate governance mechanism are prone to choose a high-quality auditor.

This paper investigates the relationship between corporate governance practices and foreign direct investment on a sample of 186 listed companies in Nigeria for a period of six years from 2008-2010 and 2012-2014. The two distinct periods represent the pre and post-corporate governance review periods in Nigeria. The study commenced with the measurement of corporate governance quality through construction of corporate governance index from the publicly disclosed information in financial statements. Foreign direct investment data was obtained by calculating the percentage of the share holds by the foreign investors (institutions and individuals) on the total quoted share for each of the listed company in Nigeria. The data were subjected to various statistical analysis such as descriptive statistics, univariate t-statistics and multivariate regression analysis. The findings of this study revealed that corporate governance has a significant impact on the inflow of foreign direct investment into the Nigeria stock market. Therefore, the policy implication of these findings is that listed companies in Nigeria need an improvement on their corporate governance practices to attract more funds from foreign investors into the Nigeria economy.

Purpose The purpose of this study is to provide a detailed descriptive account and analysis of corporate internet reporting (CIR) practices among non-financial companies listed on the Egyptian Exchange (EGX) at two points in time – December 2010 (pre) and December 2013 (peri) political and social unrest in Egypt. Design/methodology/approach The study developed a disclosure index to determine the extent of CIR practices among all non-financial companies listed on the EGX in December 2010 and December 2013. The study uses ordinary least squares (OLS) regressions and isometric log-ratio transformations for compositional independent variables to empirically examine the factors affecting CIR in Egypt using a modern institutional theory lens. Findings The findings of this investigation suggest that listed companies in Egypt have started embracing the power of the internet as a disclosure channel, but the extent of these practices increased significantly over the investigated period, with ...

Purpose: The study examined the effect of ownership structures on audit fees of listed firms in Ghana. The study used four indicators to measure ownership structure; managerial ownership, foreign ownership, government ownership and substantial (block) ownership. Design/methodology/approach: The study sampled 21 listed non-financial firms over a 10-year period covering the period 2010 to 2019. The study also relied on secondary data extracted from the financial statement of these listed firms. Data was analyzed using descriptive statistics, correlation analysis and panel regression analysis. Findings: The result of the study showed a positive and significant association between foreign ownership and audit fees in Ghana. The study further found a positive and significant relationship between block ownership and audit fees. The results however found an insignificant association between government ownership and audit fees. Furthermore, the study reported a positive coefficient between b...

The main objective of this study is to investigate the relationship between institutional ownership (IO) and the extent of forward-looking information (FLI) disclosure, by companies listed in the Egyptian Stock Exchange (ESE) for the year 2017. A sample comprising 34 companies was chosen from the most active 50 Egyptian listed companies in the ESE. To attain study objective, an index comprises 23 financial and non-financial items has been developed to measure disclosure level by sample companies. The descriptive analysis reveals a weak disclosure of future information by Egyptian listed companies ranging from 0.17 to 0.58, which indicates high variation in future disclosure among sampled companies. Moreover, the correlation analyses shows a positive strong significant correlation between the future looking disclosure level and institutional ownership, and also a positive moderately significant correlation between future looking disclosure and both audit firm and firm age. However, t...

This paper investigates whether internal governance mechanisms were associated with the financial stability of Egyptian banks over the period 2010–2019. To this end, a GMM regression analysis was employed using 252 firm-year observations. The results, in general, indicate that the level of banks’ financial stability is positively associated with board size, board meetings, and board gender. In contrast, the results show that board education and the ownership of shares by directors are negatively associated with banks’ financial stability. More interestingly, our results demonstrate that higher financial stability is significantly associated with lower board independence, the presence of CEO duality, and fewer audit committee meetings. These striking results can be attributed to the argument that the presence of independent directors on the board may reduce the CEO’s willingness to share information with board members, causing a high level of uncertainty in the decision-making proces...

RESUMEN En la elección de auditor, así como en la decisión acerca de su cambio, influyen diversos factores y en diferente medida. Aunque en otros países han sido llevados a cabo estudios empíricos con el objeto de determinar los extremos anteriores, hasta la fecha no ...

The objective of this study is to investigate the determinants (company specific characteristics and corporate governance factors) of audit report lag (ARL) in a developing country, namely, Lebanon. This paper adds and contributes to the limited literature that investigated the determinants of ARL in the developing Middle East countries through focusing on the Lebanese context. The study is carried out depending on a sample of Lebanese commercial banks operating in Lebanon, covering the period from 2012 to 2017. The researchers used the multiple regression analysis to examine the impact of the explanatory variables on ARL. The results show a significant relationship between ARL and each of bank size, leverage, board independence, board diligence, audit committee (AC) independence, and AC diligence. The regression outcomes reveal that banks with longer ARL are smaller, have higher leverage, their boards and ACs are less diligence, their boards are more independent, and their ACs include less independent and non-executive members.

This study aims to examine the effects of the size of independent commissaries, the effectiveness of audit committee and leverage on the selection of external auditors with firm size as moderation variable. The population of this research was all the companies of financial sector listed on the Indonesia Stock Exchange at 2017 as many as 95 companies. The samples were determined using purposive sampling technique. There were 89 companies as research samples and units of analysis. Moreover, the data were collected by documentation method. Analysis of research data used descriptive statistics and inferential statistics. The results indicate that the size of independent commissaries, the effectiveness of audit committee and leverage significantly have positive effect on the auditor selection. Firm size moderates the effects of the size of board of independent commissaries and leverage on the auditor selection, but does not moderates the effect of audit committee effectiveness on the aud...

This paper assesses the extent of corporate governance voluntary disclosure and the impact of a comprehensive set of corporate governance (CG) attributes (board composition, board size, CEO duality, director ownership, blockholder ownership and the existence of audit committee) on the extent of corporate governance voluntary disclosure in Egypt. The measurement of disclosure is based on published data created from a checklist developed by the United Nations, which was gathered from a manual review of financial statements and websites of a sample of Egyptian companies listed on Egyptian Stock Exchange (EGX). Although the levels of CG disclosure are found to be minimal, disclosure is high for items that are mandatory under the Egyptian Accounting Standards (EASs). The failure of companies to disclose such information clearly shows some ineffectiveness and inadequacy in the regulatory framework in Egypt. Moreover, the phenomenon of non-compliance may also be attributed to socio-economic factors in Egypt. Therefore, it is expected that Egyptian firms will take a long time to appraise the payback of increased CG disclosure. The findings indicate that that-ceteris paribus-the extent of CG disclosure is (1) lower for companies with duality in position and higher ownership concentration as measured by blockholder ownership; and (2) increases with the proportion of independent directors on the board and firm size. The results of the study support theoretical arguments that companies disclose corporate governance information in order to reduce information asymmetry and agency costs and to improve investor confidence in the reported accounting information. The empirical evidence from this study enhances the understanding of the corporate governance disclosure environment in Egypt as one of the emerging markets in the Middle East.

Auditor selection can be regarded as a matter of audit quality. Research studies aiming to model the auditor choice employ statistical techniques. Here we employ three techniques derived from the Data Mining domain to build models capable of discriminating cases where companies choose a Big 4 or a Non-Big 4 auditor. Significant factors associated with the auditor choice are revealed. The three models are compared in terms of their performances. According to 10-fold cross validation bagging increases significantly the performance of one classifier.

In fact, the Egyptian environment is an interesting setting in which to assess the relation between corporate governance mechanisms and earnings management. It could be found that few types of research considered the association between corporate governance and earnings management, while there is no research to study this relationship in Egypt for the periods after revolutions. Thus, this research aim is achieved by conducting model to examine the impact of Board of Director, Audit Committee Existence and Ownership Structure on Earnings management. Accordingly, the research objectives are to explain the nature of the relationship between corporate governance mechanisms and earnings management in Egyptian listed firms, identify the characteristics of corporate governance that have the most effects on earnings management, analyze the motivations that may lead managers in Egyptian listed firms to engage in earnings management, and to assess the econometric power and appropriateness of various accruals-based models to detect earnings management in the context of Egyptian listed firms. To verify and validate the relationship between the research variable, the researcher used quantitative secondary data collected from the Egyptian most active listed firms (EGX 50) for a period of six years from 2012 to 2017 and analyses were performed using Eviews. Comparing the results with the previously reviewed literature, the researcher illustrates to which extent the research findings are supported and provides some recommendations by the end of the research.

Purpose: The study examined the effect of ownership structures on audit fees of listed firms in Ghana. The study used four indicators to measure ownership structure; managerial ownership, foreign ownership, government ownership and substantial (block) ownership. Design/methodology/approach: The study sampled 21 listed non-financial firms over a 10-year period covering the period 2010 to 2019. The study also relied on secondary data extracted from the financial statement of these listed firms. Data was analyzed using descriptive statistics, correlation analysis and panel regression analysis. Findings: The result of the study showed a positive and significant association between foreign ownership and audit fees in Ghana. The study further found a positive and significant relationship between block ownership and audit fees. The results however found an insignificant association between government ownership and audit fees. Furthermore, the study reported a positive coefficient between b...

Purpose: The study examined the effect of ownership structures on audit fees of listed firms in Ghana. The study used four indicators to measure ownership structure; managerial ownership, foreign ownership, government ownership and substantial (block) ownership. Design/methodology/approach: The study sampled 21 listed non-financial firms over a 10-year period covering the period 2010 to 2019. The study also relied on secondary data extracted from the financial statement of these listed firms. Data was analyzed using descriptive statistics, correlation analysis and panel regression analysis. Findings: The result of the study showed a positive and significant association between foreign ownership and audit fees in Ghana. The study further found a positive and significant relationship between block ownership and audit fees. The results however found an insignificant association between government ownership and audit fees. Furthermore, the study reported a positive coefficient between b...

This study examined the influence of an entity's corporate governance practices on independent external auditor quality, proxied with auditor industry specialization, in Nigeria. The explanatory research design was adopted. Data were sourced from annual reports and accounts of thirty-five (35) quoted non-financial firms for 11 years from 2008 to 2018. After that, panel regression analyses were employed as the estimating technique for the model specified. The empirical results revealed that independent external audit quality is positively influenced by the firm's size but negatively influenced by board Independence and the proportion of female directors on board. Overall, aggregate explanatory variables adopted in this study accounted for 50% changes in external audit quality. Though these findings largely negate previous ones, they contribute to the extant literature and provide further directions for a future attempt at researching within emerging territories.

Auditing is a key factor of financial reporting quality that reduces information asymmetry, improves regulatory compliance, and enhances internal control effectiveness. The decision to select an audit firm is one of the most complex decisions. There are several factors that drive auditor selection including ownership structure, corporate governance attributes, the risk of information asymmetry and country-level determinants (Habib, Wu, Bhuiyan, & Sun, 2019). Although several studies have been conducted in this field, findings on the association between auditor choice and corporate governance from European countries are limited (Quick, Schenk, Schmidt, & Towara, 2018), and since accounting standards are issued at the national level, cultural

In fact, the Egyptian environment is an interesting setting in which to assess the relation between corporate governance mechanisms and earnings management. It could be found that few types of research considered the association between corporate governance and earnings management, while there is no research to study this relationship in Egypt for the periods after revolutions. Thus, this research aim is achieved by conducting model to examine the impact of Board of Director, Audit Committee Existence and Ownership Structure on Earnings management. Accordingly, the research objectives are to explain the nature of the relationship between corporate governance mechanisms and earnings management in Egyptian listed firms, identify the characteristics of corporate governance that have the most effects on earnings management, analyze the motivations that may lead managers in Egyptian listed firms to engage in earnings management, and to assess the econometric power and appropriateness of various accruals-based models to detect earnings management in the context of Egyptian listed firms. To verify and validate the relationship between the research variable, the researcher used quantitative secondary data collected from the Egyptian most active listed firms (EGX 50) for a period of six years from 2012 to 2017 and analyses were performed using Eviews. Comparing the results with the previously reviewed literature, the researcher illustrates to which extent the research findings are supported and provides some recommendations by the end of the research.

Auditing is a key factor of financial reporting quality that reduces information asymmetry, improves regulatory compliance, and enhances internal control effectiveness. The decision to select an audit firm is one of the most complex decisions. There are several factors that drive auditor selection including ownership structure, corporate governance attributes, the risk of information asymmetry and country-level determinants (Habib, Wu, Bhuiyan, & Sun, 2019). Although several studies have been conducted in this field, findings on the association between auditor choice and corporate governance from European countries are limited (Quick, Schenk, Schmidt, & Towara, 2018), and since accounting standards are issued at the national level, cultural

Auditing is a key factor of financial reporting quality that reduces information asymmetry, improves regulatory compliance, and enhances internal control effectiveness. The decision to select an audit firm is one of the most complex decisions. There are several factors that drive auditor selection including ownership structure, corporate governance attributes, the risk of information asymmetry and country-level determinants (Habib, Wu, Bhuiyan, & Sun, 2019). Although several studies have been conducted in this field, findings on the association between auditor choice and corporate governance from European countries are limited (Quick, Schenk, Schmidt, & Towara, 2018), and since accounting standards are issued at the national level, cultural

Purpose: The study examined the effect of ownership structures on audit fees of listed firms in Ghana. The study used four indicators to measure ownership structure; managerial ownership, foreign ownership, government ownership and substantial (block) ownership. Design/methodology/approach: The study sampled 21 listed non-financial firms over a 10-year period covering the period 2010 to 2019. The study also relied on secondary data extracted from the financial statement of these listed firms. Data was analyzed using descriptive statistics, correlation analysis and panel regression analysis. Findings: The result of the study showed a positive and significant association between foreign ownership and audit fees in Ghana. The study further found a positive and significant relationship between block ownership and audit fees. The results however found an insignificant association between government ownership and audit fees. Furthermore, the study reported a positive coefficient between b...

Purpose: The study examined the effect of ownership structures on audit fees of listed firms in Ghana. The study used four indicators to measure ownership structure; managerial ownership, foreign ownership, government ownership and substantial (block) ownership. Design/methodology/approach: The study sampled 21 listed non-financial firms over a 10-year period covering the period 2010 to 2019. The study also relied on secondary data extracted from the financial statement of these listed firms. Data was analyzed using descriptive statistics, correlation analysis and panel regression analysis. Findings: The result of the study showed a positive and significant association between foreign ownership and audit fees in Ghana. The study further found a positive and significant relationship between block ownership and audit fees. The results however found an insignificant association between government ownership and audit fees. Furthermore, the study reported a positive coefficient between b...

This study investigated the implications of board independence and foreign ownership on audit quality of manufacturing firms in Nigeria. The specific objectives of the study are to examine the effects of board independence as well as foreign ownership on audit quality of manufacturing firms quoted in Nigeria. Secondary data were carefully collected from a total of fifty eight (58) quoted manufacturing firms in Nigeria for the period (2010 – 2018) and the binary model of regression (logit, probit and gombit) was properly used for hypotheses testing. The outcome reveals that board independence had a positive and insignificant influence on audit quality while foreign ownership had a positive and significant influence on audit quality. The study therefore recommends that composition of the board should be such that its function is not undermined and one of such ways is to have an appropriate mixture with non-executive directors. Also having foreign ownership could enhance audit quality ...

This study aims to evaluate the progress of a number of aspects of corporate governance practice by listed companies on the Egyptian exchange and investigates the impact of firm characteristics, on transparency and disclosure, as main pillars of corporate governance. To achieve the study's objectives, the authors selected 12 factors to be used in the evaluation of the progress of corporate governance. In addition to factors selected, a transparency and disclosure index of 65 items was used. Items were grouped into two main categories including "general and board information" and "financial and non-financial information". The paper employs statistical analysis to examine the relationship between firm characteristics from one side and transparency and disclosure from the other. The primary analysis indicates a noticeably weak practice for most of the 12 features included in the CG feature index by Egyptian listed companies and the univariate analysis reveals that there is a significant positive association between the transparency and disclosure index from one side and three of the independent variables namely foreign listing, firm size, and audit firm from the other. Findings of the multivariate analysis are nearly consistent with those of the univariate analysis especially for results related to the independent variable of foreign listing and firm size.

This study aimed to identify the effect of the characteristics of the Board of Directors (the size of the Board of Directors, Duality of the Board of Directors, and the balance between executive and non-executive members of the Board of Directors, Board independence, the experience of the Board of Directors) on the delay of the issuance of the audit report. The sample of the study was (16) listed companies on the Egyptian Stock Exchange during the period (2013-2016). The required data were obtained from the published annual reports of the sample companies on the Egyptian Stock Exchange website. Multiple regression analysis was used to test the hypotheses of the study; the study reached the most important results of the impact of the Board size, Board independence and the experience of the Board of Directors to delay the issuance of the independent audit report. One of the most important recommendations of the study is the need for legislation at the local and global level that enhances the characteristics of the board of directors in companies and its impact on delaying the issuance of the independent audit report so that it becomes mandatory for companies which in turn enhances the credibility and reliability of the financial statements, In addition to Conduct more future studies on the same topic of research for its importance.

Objective-The purpose of this study is to examine the effect between financial distress, corporate governance, auditor switching and audit delay. This research sample using data on a manufacturing company on the Indonesia Stock Exchange. Methodology-The analysis technique used is multiple linear regression analysis technique. Findings-The research finding show that financial distress and the size of the audit committee have a significant effect on audit delay, while the concentration of ownership, managerial ownership, change of directors, and auditor switching has no significant effect on audit delay. Second finding explain that consideration for companies listed on the Indonesia Stock Exchange to pay attention to the timeliness of submitting financial reports and independent auditor reports so as not to get sanctions from the Financial Services Authority. Novelty-Our novelty research using the relationship of Financial Distress, Corporate Governance and Auditor Switching on new research model to Audit Delay.

This study examines whether ownership structure which was divided into blockholder ownership, managerial ownership, and public ownership had influence on corporate governance disclosure, and whether growth opportunities moderate that influence. Studies in this area mostly examined the role of ownership structure on corporate financial disclosure or public announcements conducted in the context of different countries and in more regulated industries in Indonesia. The scope of this study was manufacturing companies listed on the Indonesian Stock Exchange for the period of 2013. The results showed that between the ownership structures only blockholder ownership had a negative and significant influence on the corporate governance disclosure. Being the largest shareholders, blockholders might have better access on the inside information which made them better informed relative to other shareholders, thus arguably might desire less disclosure. The results also showed that the interaction variable between managerial ownership and growth opportunities was negative and significant. This indicates that in a growing company where the managerial ownership increases, the management would tend to reduce the corporate governance information they provided to the stakeholders. ABSTRAK Penelitian ini menguji apakah struktur kepemilikan yang dibagi menjadi kepemilikan blockholder, kepemilikan manajerial, dan kepemilikan publik memiliki pengaruh terhadap pernyataan tata kelola perusahaan, dan apakah kesempatan bertumbuh memoderasi pengaruh tersebut. Adapun kebanyakan penelitian di bidang ini hanya mengusut peran struktur kepemilikan terhadap pernyataan keuangan perusahaan atau pengumuman publik, dilakukan di luar Indonesia dalam konteks negara yang berbeda, sedangkan yang ada di Indonesia dilakukan pada industri yang sangat ketat dikendalikan oleh aturan. Obyek penelitian ini adalah perusahaan-perusahaan manufaktur yang terdaftar dalam Bursa Efek Indonesia untuk periode tahun 2013. Hasil penelitian ini menunjukkan bahwa di antara struktur kepemilikan yang ada, hanya kepemilikan blockholder yang memiliki pengaruh negatif signifikan terhadap pernyataan tata kelola perusahaan. Sebagai pemegang saham terbesar dalam perusahaan, blockholder kemungkinan besar memiliki akses yang lebih baik terhadap informasi dalam perusahaan yang membuat mereka lebih banyak tahu kondisi perusahaan dibandingkan pemegang saham yang lain, yang kemudian menyebabkan penyajian informasi dalam pernyataan tata kelola perusahaan menjadi lebih terbatas. Hasil penelitian ini juga menunjukkan bahwa variabel interaksi antara kepemilikan manajerial dan kesempatan bertumbuh juga negatif signifikan. Hal ini menunjukkan bahwa pada perusahaan yang sedang bertumbuh ketika kepemilikan manajerial bertambah, manajemen akan cenderung mengurangi informasi yang disajikan dalam pernyataan tata kelola perusahaan.

Shareholders with a large stake in a company may have greater incentives to monitor and take corrective actions, because they partially internalize the benefits from their monitoring effort. This study examined the impact of concentrated ownership on audit quality as measured by auditors’ tenure of 36 manufacturing companies quoted on the NSE. The sample size was selected using non-probability method of sampling from a population of 185 quoted companies on the Nigerian Stock Exchange. The study adopted experimental research design and secondary data extracted from the audited annual reports of the firms under consideration covering a period 2007 to 2017 was used. The study found that ownership concentration has no statistically significant impact on auditors’ tenure. The study therefore recommends that ownership concentration should be maintained at a controllable level; the insignificant impact of concentrated ownership on auditors’ tenure as evident in this study might be the resu...