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375924

CATALYSTS OF FINANCIAL STABILITY”: ANALYZING THE NEXUS BETWEEN AUDIT QUALITY AND EARNINGS PERSISTENCE; EGX 30 TR INDEX; AN EMPIRICAL STUDY

Article

Last updated: 04 Jan 2025

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Abstract

Our study aimed to explore the nexus between audit quality (AQ) and earnings persistence (EP) in Egypt. Using an ordinary multiple regression model from 2020 to 2023 for 21 Egyptian firms listed in the EGX TR Index, the study sample results demonstrate a positive and significant impact of audit quality and the persistence of earnings for 21 Egyptian firms. Meanwhile, audit quality significantly affects the persistence of Egyptian firm earnings by ensuring financial reporting reliability. Audit quality significantly influences investors and stakeholders' confidence and trust, promotes disclosure and transparency, and reduces information asymmetry by independent auditors. Furthermore, the study revealed a positive and significant impact of return on assets (ROA) on earnings persistence (EP), while there was a converse impact of number of shares (NS) and firm sector (SEC) on earnings persistence (EP). Our results uncovered important implications for Egyptian firms, highlighting the significance of audit quality and return on assets in driving earnings persistence. It emphasized the need for professional and governmental bodies to prioritize corporate governance and the transparency of financial reporting in Egyptian firms. In accordance with the overarching goals of the Egypt Vision 2023 plan for sustainable development

DOI

10.21608/abj.2024.375924

Keywords

Audit quality, Earnings persistence, Return on Assets, EGX TR Index, Egyptian context, Egypt Vision 2023

Authors

First Name

Nehad Hosny Yusuf

Last Name

El-Sayed

MiddleName

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Affiliation

Assistant Professor of Accounting Faculty of Management, Economics, and Business Technology Egyptian Russian University

Email

nehad.yusuf@eru.edu.eg

City

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Orcid

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First Name

Mona Ahmed Ahmed Ahmed

Last Name

Shemes

MiddleName

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Affiliation

Assistant Professor of Accounting Faculty of Business administration Delta University for Science and Technology

Email

mona.shmeis@deltauni.edu.eg

City

المنصورة

Orcid

-

Volume

11

Article Issue

3

Related Issue

50438

Issue Date

2024-09-01

Receive Date

2024-05-25

Publish Date

2024-09-01

Page Start

1

Page End

27

Print ISSN

2682-3446

Online ISSN

2682-4817

Link

https://abj.journals.ekb.eg/article_375924.html

Detail API

https://abj.journals.ekb.eg/service?article_code=375924

Order

375,924

Publication Type

Journal

Publication Title

مجلة البحوث المحاسبية

Publication Link

https://abj.journals.ekb.eg/

MainTitle

CATALYSTS OF FINANCIAL STABILITY”: ANALYZING THE NEXUS BETWEEN AUDIT QUALITY AND EARNINGS PERSISTENCE; EGX 30 TR INDEX; AN EMPIRICAL STUDY

Details

Type

Article

Created At

25 Dec 2024