The Impact of Audit Quality Features on Enhancing Earnings Quality: The Evidence of Listed Manufacturing Firms at Amman Stock Exchange

Almomani, Mohammad Abdallah

doi:10.5296/ajfa.v7i2.8539

Cited by 10 publications

(9 citation statements)

References 20 publications

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“…She also documented that all these factors have an impact on the business risk as well as audit risk of bodies corporate. Furthermore, Almomani and Ayedh (2017) investigated the audit quality on earnings management of industrial companies listed on the Amman Stock Exchange. Their findings demonstrate no significant relationship between audit fees and earnings management.…”

Section: Audit Quality and Audit Industry Specializationmentioning

confidence: 99%

A meta-analysis approach for determinants of effective factors on audit quality

Salehi

Mahmoudi

Gah³

2019

JAEE

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Purpose The purpose of this paper is to demonstrate a deeper understanding about the reasons behind difference in previous studies’ results in the field of audit quality determinants. Design/methodology/approach A meta-analysis method is employed in which 52 studies including 40 international studies from authentic scientific articles during the year 2000–2015 and 12 national studies out of authentic national scientific articles from 2001 to 2015 are taken to account as sample studies. Audit firm size, auditor tenure and auditor specialization are set as independent variables and audit quality is the only dependent variable in the current paper. Findings The results indicate that audit firm size and auditor specialization are positively associated with audit quality. In other words, contracting with larger audit firm and specialized auditor results in delivering higher quality audit services. Originality/value The current study is the first study to be conducted in the field of audit quality determinants. The results may be beneficial both for standard setters as well practitioners in a way that it provides evidence that contributes to basis policy and audit-standard makers about domination and determinants of audit quality.

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Section: Audit Quality and Audit Industry Specializationmentioning

confidence: 99%

A meta-analysis approach for determinants of effective factors on audit quality

Salehi

Mahmoudi

Gah³

2019

JAEE

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“…Managers may provide financial information dishonestly to protect their own interests while the principals cannot directly observe managers' behavior (Ramadan, 2015;Williams, 1988). External audits help to reduce information asymmetries between managers and principals by lending credibility to financial statements (Almomani, 2015;Carey, 2008). Thus, audit quality needs to be high to ensure their client firms to disclose better quality of information in a timelier manner to protect principals.…”

Section: Introductionmentioning

confidence: 99%

Audit Firm Size, Audit Fee, Audit Reputation and Audit Quality: The Case of Listed Companies in Vietnam

Pham¹,

Duong²,

Pham³

et al. 2017

AJFA

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Audit quality is considered as an essential factor affecting the reliability of financial information. The aim of this study is to assess the effects of audit firm characteristics, including audit reputation, audit fees and audit firm size, on audit quality. A sample of 192 companies listed on Hanoi and Ho Chi Minh Stock Exchange for the period of 2006-2014 was selected. Multiple regression was used to analyze the data. The findings show that Big 4 auditors in Vietnam provide high audit quality than non-Big 4 auditors. Interestingly, in Vietnam context, except for the audit firms in the Big 4 group, the findings suggest that smaller audit firms provide better audit quality. Additionally, the results reveal that the more audit fees the auditors receive, the lower audit quality they provide. The critical role of audit quality has attracted significantly scholarly attention, however, prior studies have mainly focused on firms in developed countries. Little is known about audit quality in an emerging economy context such as Vietnam. This study adds to the limited number of studies on audit quality of listed companies in emerging economies.

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“…They find a non-linear, U-shaped link between the two variables, but a strong, significant linear association between the diversity of boards and earnings quality. Almomania et al (2020), study looks at how board diversity and profits quality relate to a sample of Amman Stock Exchange-quoted companies (ASE). There were 68 firms in the sample from 2010 to 2019, totaling 680 firm-year observations.…”

Section: Empirical Review Gender Diversity and Earnings Qualitymentioning

confidence: 99%

Effects of Board Diversity on the Earning Quality of Non-Financial Firms Listed on the Ghana Stock Exchange

Nagriwum,

Wiredu,

Amaning

et al. 2023

Am. J. Financ. Inst.

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To maximize wealth, corporate finance must carefully balance cash flows and the cost of capital for a corporation, which results in corporate governance. Corporate governance guarantees openness, responsibility, equity, the organization’s long-term financial health, investor credibility, and the optimization of investor wealth. The study aimed to determine how board diversity affected the profitability of non-financial listed companies on the Ghana Stock Exchange with a specific focus on the effects of gender diversity, age diversity, and nationality diversity on earnings quality. The study used a descriptive design and a quantitative research methodology. The data were examined and reviewed using SPSS version 23, STATA 14, and Excel. The study used secondary data that was collected for a period of 11 years (2011-2021) from the financial accounts of the five (5) non-financial institutions that were listed on the GSE. From the perspective of non-financial listed firms on the Ghana Stock Exchange, the study found that gender diversity and nationality diversity significantly influence earnings quality but age diversity does not have a significant impact on the earnings quality of non-financial listed companies on the Ghana Stock Exchange. The study also recommended that management of publicly traded companies consciously adopt more diverse boards, especially in terms of gender diversity because it is associated with an increase in earnings quality.

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The Impact of Audit Quality Features on Enhancing Earnings Quality: The Evidence of Listed Manufacturing Firms at Amman Stock Exchange

Cited by 10 publications

References 20 publications

A meta-analysis approach for determinants of effective factors on audit quality

A meta-analysis approach for determinants of effective factors on audit quality

Audit Firm Size, Audit Fee, Audit Reputation and Audit Quality: The Case of Listed Companies in Vietnam

Effects of Board Diversity on the Earning Quality of Non-Financial Firms Listed on the Ghana Stock Exchange

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