The Effect of Audit quality on Stock Price Crash Risk "An Empirical Study on Egyptian Listed Companies" | ||||
| مجلة الدراسات المالية والتجارية | ||||
| Volume 33, Issue 2, August 2023, Page 38-59 PDF (1.03 MB) | ||||
| Document Type: المقالة الأصلية | ||||
| DOI: 10.21608/mosj.2023.313019 | ||||
 View on SCiNiTO | ||||
| Author | ||||
| Mahmoud Mostafa | ||||
| كلية التجارة - جامعة بنى سويف | ||||
| Abstract | ||||
| The main objective of this research was to measure the impact of audit quality on stock price crash risk. The sample of the study included 125 nonfinancial listed companies on the Egyptian Stock Exchange during the period from 2016 to 2019. The total number of observations was 490 observation after excluding 10 observations due to incomplete data. The research results concluded a negative significant relationship between audit quality and stock price crash risk. The researcher recommends setting strong regulatory mechanisms to enhance high-quality audits, which in turn would reduce stock price crash risk. Also, depending on big audit offices, because of the expertise and skills they have will increase audit quality level, consequently reducing stock price crash risk. In addition, setting the necessary controls and legislation to limit the actions of opportunistic managers and prevent them from withholding bad news, enhancing transparency and improving audit quality, which reduces stock price crash risk. | ||||
| Keywords | ||||
| Audit quality - Stock price crash risk; Egyptian listed firms | ||||
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