2021_The Mediating Effect of Audit Quality on The Relationship Between Corporate Governance Mechanisms and Financial Reporting Quality
| Format: | General Document |
|---|
| _version_ | 1860798089235791872 |
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| building | INTELEK Repository |
| collection | Online Access |
| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2021-03-07 |
| format | General Document |
| id | 15875 |
| institution | UniSZA |
| internalnotes | Sila masukkan subject wajib Dissertations, Academic. Terima kasih... |
| originalfilename | THE MEDIATING EFFECT OF AUDIT QUALITY ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE MECHANISMS AND FINANCIAL REPORTING QUALITY (PHD_2021).pdf |
| person | Hamza Kamel Okleh Qawqzeh |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15875 |
| sourcemedia | Server storage Scanned document |
| spelling | 15875 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15875 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Auditing Copyright©PWB2025 Corporations—Finance Corporate governance 2021-03-07 336 THE MEDIATING EFFECT OF AUDIT QUALITY ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE MECHANISMS AND FINANCIAL REPORTING QUALITY (PHD_2021).pdf Hamza Kamel Okleh Qawqzeh Mediating Effect Of Audit Quality Relationship Between Corporate Governance Mechanisms And Financial Reporting Quality Financial statements—Quality control Disclosure in accounting 2021_The Mediating Effect of Audit Quality on The Relationship Between Corporate Governance Mechanisms and Financial Reporting Quality The incessant manipulations of corporate financial statements globally in the past few years have led to several scandals and failures. This phenomenon has resulted in serious threats to the reliability of financial reporting and external audit arising from lack of integrity and credibility of audited financial statements. This is attributed to the negligence and inability of external auditors to alert shareholders of such manipulation and misleading in the financial statements and reporting of these violations. The decrease in the financial reporting quality (FRQ) is mostly attributed to the increasing of discretionary accruals estimated by the management. Hence, the current study aimed at investigating the influence of the external auditor’s characteristics and corporate governance (CG) mechanisms on the earning management and FRQ, and the mediating effect of the audit quality on these relationships in the Jordanian context. The secondary data of 180 public-listed firms in Amman Stock Exchange from 2009 until 2017 were gathered through annual reports of the companies and Datastream database. Multiple regression technique and diagnostic analysis were performed to test all assumptions for the data to be valid. In this study, discretionary accruals (DACC) are used as a measurement of FRQ, given that the DACC capture the earnings management and thus, provides an inverse proxy for FRQ. By using balanced panel data and an econometric analysis to select the best method among the Fixed, Random or Pooled OLS Effects through Eviews software, the Fixed Effect is found to be the best specification method for all of the study models. Findings of the first model indicated that auditor size, industry specialization, auditor tenure, board size, board independence, directors’ remunerations, family and directors’ ownership have significantly given impact on FRQ. Meanwhile board expertise, institutional and managerial ownership have insignificant impact on FRQ. Findings of the second model showed that industry specialization, auditor tenure, board size, expertise, directors’ remunerations, directors ownership, institutional and managerial ownership have significant effects on audit quality. While auditor size, board independence and family ownership have insignificant influence on audit quality. Finally, in terms of the mediating effect in the third model, the study employed two complementary methods, namely the Causal Steps Method and the Sobel test. The results of the mediation model revealed that audit quality mediates the relationship between CG mechanisms and FRQ. The current study created new understanding and perspective of the interaction between ownership structure, auditor’s characteristics, board components, audit quality, earnings management and FRQ. The findings are important to the policy makers, professionals and regulatory bodies, especially with regards to external audit quality and mandating and developing of the CG mechanisms. These findings can be applied to other developing countries that have similar economic and political environment with Jordan. Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Thesis |
| spellingShingle | 2021_The Mediating Effect of Audit Quality on The Relationship Between Corporate Governance Mechanisms and Financial Reporting Quality |
| state | Terengganu |
| subject | Auditing Corporations—Finance Corporate governance Financial statements—Quality control Disclosure in accounting Dissertations, Academic |
| summary | The incessant manipulations of corporate financial statements globally in the past few years have led to several scandals and failures. This phenomenon has resulted in serious threats to the reliability of financial reporting and external audit arising from lack of integrity and credibility of audited financial statements. This is attributed to the negligence and inability of external auditors to alert shareholders of such manipulation and misleading in the financial statements and reporting of these violations. The decrease in the financial reporting quality (FRQ) is mostly attributed to the increasing of discretionary accruals estimated by the management. Hence, the current study aimed at investigating the influence of the external auditor’s characteristics and corporate governance (CG) mechanisms on the earning management and FRQ, and the mediating effect of the audit quality on these relationships in the Jordanian context. The secondary data of 180 public-listed firms in Amman Stock Exchange from 2009 until 2017 were gathered through annual reports of the companies and Datastream database. Multiple regression technique and diagnostic analysis were performed to test all assumptions for the data to be valid. In this study, discretionary accruals (DACC) are used as a measurement of FRQ, given that the DACC capture the earnings management and thus, provides an inverse proxy for FRQ. By using balanced panel data and an econometric analysis to select the best method among the Fixed, Random or Pooled OLS Effects through Eviews software, the Fixed Effect is found to be the best specification method for all of the study models. Findings of the first model indicated that auditor size, industry specialization, auditor tenure, board size, board independence, directors’ remunerations, family and directors’ ownership have significantly given impact on FRQ. Meanwhile board expertise, institutional and managerial ownership have insignificant impact on FRQ. Findings of the second model showed that industry specialization, auditor tenure, board size, expertise, directors’ remunerations, directors ownership, institutional and managerial ownership have significant effects on audit quality. While auditor size, board independence and family ownership have insignificant influence on audit quality. Finally, in terms of the mediating effect in the third model, the study employed two complementary methods, namely the Causal Steps Method and the Sobel test. The results of the mediation model revealed that audit quality mediates the relationship between CG mechanisms and FRQ. The current study created new understanding and perspective of the interaction between ownership structure, auditor’s characteristics, board components, audit quality, earnings management and FRQ. The findings are important to the policy makers, professionals and regulatory bodies, especially with regards to external audit quality and mandating and developing of the CG mechanisms. These findings can be applied to other developing countries that have similar economic and political environment with Jordan. |
| title | 2021_The Mediating Effect of Audit Quality on The Relationship Between Corporate Governance Mechanisms and Financial Reporting Quality |
| title_full | 2021_The Mediating Effect of Audit Quality on The Relationship Between Corporate Governance Mechanisms and Financial Reporting Quality |
| title_fullStr | 2021_The Mediating Effect of Audit Quality on The Relationship Between Corporate Governance Mechanisms and Financial Reporting Quality |
| title_full_unstemmed | 2021_The Mediating Effect of Audit Quality on The Relationship Between Corporate Governance Mechanisms and Financial Reporting Quality |
| title_short | 2021_The Mediating Effect of Audit Quality on The Relationship Between Corporate Governance Mechanisms and Financial Reporting Quality |
| title_sort | 2021_the mediating effect of audit quality on the relationship between corporate governance mechanisms and financial reporting quality |