Audit Committee Effectiveness, Audit Quality and Earnings Management: An Empirical Study of the Listed Companies in Egypt
By Mohamed Soliman, A. Ragab. 2014
175 citations recorded by the source corpus.
The role of audit committees and audit quality in ensuring the quality of corporate financial reporting has come under considerable scrutiny due to recent high-profile earnings management cases in the world. The purpose of this paper is to examine the association between the audit committee effectiveness, audit quality and earnings management practices of more active 50 Egyptian companies listed on the Egyptian Stock Exchange of the non-financial sector during the period 2007-2010. After controlling for size, leverage and cash flow from operation activities, the results of univariate and multivariate analyses indicated that audit committees independence; experience of audit committee members; audit committee meetings; and audit quality have significant negative association with discretionary accruals as a proxy for earnings management. On the other hand, no significant relationship is found between audit committees size and the level of discretionary accruals. This paper is important because it offers useful information that is of great value to policy makers, academics and other stakeholders. Keywords : Audit Committee Effectiveness, Audit Quality, Earning Management, Egypt
Subfields: Accounting, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/ca8f830235f90530929f82fd9a5be79f34014d83
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In Accounting
- A. Gerged
- P. Rahman
- P. Fahad
- M. Habbash
- Lin Lefen
- Sohail Ahmad Javeed
- Khaldoon Albitar
- Lara Al-Haddad
In Strategy and Management
- A. Gerged
- P. Rahman
- P. Fahad
- M. Habbash
- Lin Lefen
- Sohail Ahmad Javeed
- Khaldoon Albitar
- Lara Al-Haddad
Citations in the corpus
- Impact of corporate governance on CSR disclosure (2020, background): “The efficient audit committee improves the quality of reporting (Xie et al. 2003; Soliman and Ragab 2014).”
- Corporate environmental disclosure and earnings management—The moderating role of corporate governance structures (2021, background): “For example, Klein (2002), Sarkar, Sarkar, and Sen (2008), Gulzar (2011), Roodposhti and Chashmi (2011), Soliman and Ragab (2014), Uwuigbe, Peter, and Oyeniyi (2014), Latif and Abdullah (2015); Iqbal, Khan, and Ahmed (2015); Al-Haddad and Whittington (2019) suggest that CEO-duality appeared to be…”
- Corporate governance and risk disclosure: evidence from Saudi Arabia (2019, unknown): “This result is consistent with Soliman and Ragab (2014) found a positive correlation between audit committee effectiveness and the disclosure quality and similarly Barakat and Hussainey (2013) found a positive correlation between audit committee activity and RD level.”
- Corporate governance and corporate social responsibility disclosure: evidence from Saudi Arabia (2016, background): “This result contradicts those of Xie et al. (2003), Said et al. (2009) and Soliman and Ragab (2014) who find that existence of effective AC could play a positive role in enhancing the disclosure quality.”
- An Analysis of Corporate Social Responsibility and Firm Performance with Moderating Effects of CEO Power and Ownership Structure: A Case Study of the Manufacturing Sector of Pakistan (2019, result): “Several studies support our hypothesis and found a positive connection between CSR and FP with the effects of ownership concentration [79,167,168,172,173].”