أثر جودة المراجعة على العلاقة بين ضعف الرقابة الداخلية و خطر انهيار أسعار الأسهم : دراسة تطبيقية على الشركات المقيدة بالبورصة المصرية

Abstract EN

Research objective: The study aimed to analyze and test the effect of the internal control weakness on the Stock price crash risk of companies listed on the Egyptian Stock Exchange, and the effect of audit quality on this relationship.

Research Methodology: The study relied on the content analysis in examining the actual historical data in the interim financial statements (quarterly) of a sample of (85) companies listed on the Egyptian Stock Exchange during the period from (2015) to the year (2019), The number of views reached 1700 views., to test the research hypotheses that reflect the relationship between the internal control weakness, and the Stock price crash risk, using a set of statistical methods represented in the Pearson correlation coefficient and the multiple regression.

Results and Recommendations: The results of this research indicate a positive and significant correlation between the internal control weakness and the Stock price crash risk of companies listed on the Egyptian Stock Exchange, while there is a negative and significant correlation among audit quality and the Stock price crash risk.

Also audit quality affects on the relationship between internal control weaknesses and the Stock price crash risk of companies listed on the Egyptian Stock Exchange, but it is a weak effect.

Based on the current study results, Egyptian companies should pay more attention to the internal control weakness and treating the problems and issues facing companies and have an impact on the internal control weakness, because of its negative effect on firm’s economic results, and should pay more attention to design and implementation of an effective internal control systems, and establishment of controls and legislation necessary to oblige companies to evaluate and disclose internal control weaknesses and publish the management report on the control system, and to control and prevent management hiding of bad news and to enhance transparency in order to reduce stock price crash risk.