Impact of corporate governance, audit quality and firm characteristics on firm profitability using earnings quality as a moderating variable
Author
Source
Issue
Vol. 26, Issue 1 (30 Apr. 2022), pp.13-62, 50 p.
Publisher
Ain Shams University Faculty of Commerce Accounting and Auditing Department
Publication Date
2022-04-30
Country of Publication
Egypt
No. of Pages
50
Main Subjects
Topics
- Accounting
- Financial statements
- Financial markets
- Auditing
- Quality control
- Regression analysis
- Data analysis
- Corporate governance
- Financial leverage
Abstract EN
The main aim of this research was to investigate the impact of corporate governance (board characteristics) and audit quality on profitability using earnings quality as a moderator variable.
Its observed data consisted of 336 annual data of a sample of 56 companies listed in the Egyptian Stock Exchange during the period 2015-2020.
The proxies of corporate governance are board independence, board size and CEO duality.
The proxies of audit quality are auditor size (big 4), audit committee size and audit committee independence.
The control variables that are considered are financial leverage and firm size.
Data analysis method used multiple regression analysis to examine the interrelation between the research variables.
Research results showed that board independence, large board size, large audit committee, audit committee independence and Big 4 audit firms have a positive insignificant impact on the firm' profitability, while financial leverage and CEO duality are found to have a negative relationship with firm' profitability.
In addition, the results show that board independence, large board size, large audit committee, audit committee independence, Big 4 audit firms, financial leverage and firm size have a positive impact on the earnings quality, while CEO duality is found to have a negative relationship with earnings quality.
The findings indicate that the audit committee improves audit quality.
These findings are similar with the earlier findings, which found that corporate governance and audit quality had a beneficial impact on business profitability through their impact on value relevance and firm value.
The value relevance of financial reporting demonstrates its dependability.
Effective corporate governance ensures the dependability of financial reporting, reducing the asymmetry of accounting information.
American Psychological Association (APA)
Abd al-Majid, Nifin Subhi. 2022. Impact of corporate governance, audit quality and firm characteristics on firm profitability using earnings quality as a moderating variable. Journal of Accounting Thought،Vol. 26, no. 1, pp.13-62.
https://search.emarefa.net/detail/BIM-1396645
Modern Language Association (MLA)
Abd al-Majid, Nifin Subhi. Impact of corporate governance, audit quality and firm characteristics on firm profitability using earnings quality as a moderating variable. Journal of Accounting Thought Vol. 26, no. 1 (2022), pp.13-62.
https://search.emarefa.net/detail/BIM-1396645
American Medical Association (AMA)
Abd al-Majid, Nifin Subhi. Impact of corporate governance, audit quality and firm characteristics on firm profitability using earnings quality as a moderating variable. Journal of Accounting Thought. 2022. Vol. 26, no. 1, pp.13-62.
https://search.emarefa.net/detail/BIM-1396645
Data Type
Journal Articles
Language
English
Notes
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Record ID
BIM-1396645