2014
DOI: 10.22495/cocv11i2c3p4
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Auditing quality characteristics and accounting conservatism: an empirical study of the listed companies in Egypt

Abstract: The growing issues on the quality of audit and accounting conservatisms have long been regarded and seemed as a hot debated since both could impact on the capital market efficiency. This study aims to investigate the impact of the audit quality which is characterized by audit firm size, auditor specialization, and auditor tenure on accounting conservatisms in the financial reports of the more active 50 non-financial companies listed at Egyptian stock exchange across four years of period from 2007 to 2010. Afte… Show more

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Cited by 9 publications
(12 citation statements)
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References 39 publications
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“…The first group of studies (Soliman, 2014;Ndubuisi and Ezechukwu, 2017;El Guindy and Basuony, 2018) provided evidence that there is a positive relationship between audit firm tenure and financial reporting quality. Soliman (2014) investigated the effect of audit quality characteristics on accounting conservatism in Egypt. He used 50 active non-financial companies in the Egyptian stock market for four years starting from 2007 to 2010.…”
Section: -2-3 Audit Firm Tenure and Financial Reporting Qualitymentioning
confidence: 99%
“…The first group of studies (Soliman, 2014;Ndubuisi and Ezechukwu, 2017;El Guindy and Basuony, 2018) provided evidence that there is a positive relationship between audit firm tenure and financial reporting quality. Soliman (2014) investigated the effect of audit quality characteristics on accounting conservatism in Egypt. He used 50 active non-financial companies in the Egyptian stock market for four years starting from 2007 to 2010.…”
Section: -2-3 Audit Firm Tenure and Financial Reporting Qualitymentioning
confidence: 99%
“…These findings indicate that audit quality is a substitute for alternative monitoring mechanisms that reduce information asymmetry between agents (managers) and investors (principals); hence enhance investors' confidence. Soliman (2014) provided evidence that audit quality increases the degree of accounting conservatism. Boubaker et al (2018) provided evidence that firms which hire Big 4 auditors and engage auditor specialized in the industry to verify their financial statements are more likely to invest more efficiently.…”
Section: Audit Quality and The Cost Of Equity Capitalmentioning
confidence: 99%
“…Also, financial leverage is sometimes called Debt ratio which is a solvency ratio that measures a firm's total liabilities as a percentage of its total assets, so companies with higher levels of liabilities compared with assets are considered highly leveraged and more risky for lenders; as a result, financial leverage re-presents other cr-editors' claims on the assets of the company. Based on that, many authors, for example Kim and Jung (2007), Scott (2012) and Soliman (2014) asserted that these claims may lead creditors to force company's management to apply m-ore conservatism practices.…”
Section: Firm's Financial Leveragementioning
confidence: 99%