The Effect of Audit Quality on the Extent of Voluntary Disclosure: Companies Listed in the Tunisian Stock Exchange

Ahmadi, Ali; Bouri, Abdelfettah

doi:10.1007/s13132-016-0444-y

Cited by 11 publications

(25 citation statements)

References 37 publications

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“…The United Arab Emirates (UAE) has the highest level of Big N market share (91.16%), followed by Qatar (87.39%), Bahrain (77.40%), Morocco (72.43%), Oman (65.92%), Tunisia (63.47%), Jordan (58.56%), Kuwait (58.14%) and Egypt (44.20%). These findings are comparable to those reported in previous studies (Ahmadi and Bouri, 2019;Alfraih, 2016;Alhababsah, 2019;Baatwah et al, 2018;Habbash and Alghamdi, 2017;Khalil and Ozkan, 2016).…”

Section: Sample Selectionsupporting

confidence: 92%

Big N auditors and the quality of earnings: Evidence from Middle Eastern and North African countries

Al-Hiyari¹,

Kolsi²,

Muqattash

2022

Journal of General Management

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In recent years, the importance of audit quality has garnered significant attention by managements, academics and the general public. In this study, we examine the relationship between Big N auditors and earnings quality in the Middle Eastern and North African (MENA) countries, where cultural and institutional contexts are quite different from those in Western countries. In addressing this issue, we employ three audit quality metrics – value relevance, abnormal accruals and earnings persistence – and use the propensity score matching technique to deal with the potential endogeneity arising from the nature of external auditor choices. Contrary to the view that Big N auditors supply quality-differentiated audits, the results obtained employing a cross-country sample of publicly listed non-financial firms of 10 MENA countries during 2009–2019 provide evidence that Big N auditors are insignificantly associated with the three measures of audit quality. Furthermore, we find that the differences in audit quality between the two auditor groups are mainly due to the clients’ innate characteristics, rather than the competency of Big N auditors. Our results hold after performing different sensitivity analyses. Overall, our findings challenge the conventional notion that Big N auditors deliver quality-differentiated audits.

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Section: Sample Selectionsupporting

confidence: 92%

Big N auditors and the quality of earnings: Evidence from Middle Eastern and North African countries

Al-Hiyari¹,

Kolsi²,

Muqattash

2022

Journal of General Management

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“…By highlighting the centrality of the manager, especially in emerging countries, this article proposes to study the voluntary disclosure in Tunisian context by examining the management earnings forecasts. This study investigates the relation between management earnings forecast errors and the two earnings' components, accruals and cash flows.When referring to studies in the Tunisian context, we note that much of voluntary disclosure research narrowly focuses on either the determinants of voluntary disclosure (Jouirou & Chenguel, 2014;Boudiche, 2013) or the effect of audit quality on the extent of voluntary disclosure (Ahmadi & Bouri, 2019). Consequently, it appears that some important concerns about the quality of management forecasts are ignored.…”

Section: Introductionmentioning

confidence: 99%

Do Management Earnings Forecasts Incorporate Information in Earnings’ Components? Evidence from the Tunisian Context

Boubakri¹

2020

IJBSS

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The aim of this paper is to explain the management earnings forecast errors of Tunisian listed firms and examine whether the management earnings forecasts reflect fully the implications of the two components accruals and cash flows of current earnings for the future earnings. Using a sample of Tunisian non-financial firms over the period 2009-2018, the Hausman test result advocates choosing the fixed effects models to determine which information from mandatory disclosures, can explain the management earnings forecast errors in listed Tunisian firms. Our results indicate a negative and significant association between management earnings forecast errors and cash flows component but the effect of the accruals component on management forecast errors is not statistically significant. These results show that managers estimate correctly the accruals persistence but underestimate the cash flows persistence.

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“…Specially, by applying the lens of knowledge economy, Ahmadi and Bouri ( 2019 ) have noticed that operating performance can generate a very relevant impact on the delisting choices. In fact, several scholars have highlighted that high level of firm’ operating performance, i.e., return on asset and return on equity measurements, propel management to delist the firm to well manage the increasing level of operating performance (Croci & Del Giudice, 2014 ; Du & He, 2013 ; Wright et al, 2009 ).…”

Section: Literature Reviewmentioning

confidence: 99%

“…In this vein, financial literature we are proposing in this paper is well related to the opportunity of firms’ knowledge economy in a modern business environment. Moreover, several scholars have highlighted the impact of knowledge economy on financial settings (Ahmadi & Bouri, 2019 ; Du & He, 2013 ); while other have focused on the impact of financial variables and their effects on the firm’s performance (Croci & Giudice, 2014 ; He, 2008 ; Sung & Choi, 2012 ). Alongside this, in the era of knowledge economy, very little is known about the financial variables that increase the likelihood of firm’s delisting and the eventually the rapid progress of delisted firms.…”

Section: Introductionmentioning

confidence: 99%

“…Following the approach of knowledge economy, delisting process is undertaken by owner-managers in enhancing the sustainability of the firm (Del Giudice et al, 2017 ; Dubina et al, 2012 ). In this sense, by applying the lens of the micro-meso-macro level, delisting can be the trigged by the significant amount of cash flows which can exacerbate agency costs, indicate poor growth opportunities, and make external resources less required (Ahmadi & Bouri, 2019 ; Lombardi et al, 2016a , b ; Mouna & Anis, 2017 ). Moreover, very recent literature on financial performance have highlighted new evidence on the impact of corporate social responsibility knowledge on corporate financial performance (Gangi et al, 2019 ).…”

Section: Introductionmentioning

confidence: 99%

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Defining the Relationship Between Firm’s Performance and Delisting: Empirical Evidence of Going Private in Europe

et al. 2021

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One of the reasons why a firm chooses to go private is the significant amount of cash flows which can exacerbate agency costs: this can indicate poor growth opportunities and make external resources less required. In line with both knowledge economy and financial literature, the paper aims to indagate the relationship between agency costs, firm’s performance, and delisting. Despite there is evidence in finance that highlights the role of exchange regulators in the going private processes, just few studies focus on the voluntary delisting and its antecedents. Starting from the knowledge economy setting, this paper aims to define how firm’s financial performance moderates the relationship between agency costs and delisting choices. Based on a sample of non-financial firms delisted from the most important European stock markets between 1997 and 2017, we applied an OLS regression to analyze the main variables that influence the going private processes. We find that a high level of stock market performance, associated with high level of free cash flows, promotes going private as a means of anticipating and preventing future value decreases. Finally, the paper provides practical implications for the development of new approach of delisting choice.

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The Effect of Audit Quality on the Extent of Voluntary Disclosure: Companies Listed in the Tunisian Stock Exchange

Cited by 11 publications

References 37 publications

Big N auditors and the quality of earnings: Evidence from Middle Eastern and North African countries

Big N auditors and the quality of earnings: Evidence from Middle Eastern and North African countries

Do Management Earnings Forecasts Incorporate Information in Earnings’ Components? Evidence from the Tunisian Context

Defining the Relationship Between Firm’s Performance and Delisting: Empirical Evidence of Going Private in Europe

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