The Impact of Key Audit Matters on Earnings Quality: The Moderating Role of Ownership Structure in Egyptian Listed Companies | ||||
| المجلة العلمية للدراسات المحاسبية | ||||
| Volume 7, Issue 1, January 2025, Page 288-327 PDF (607.74 K) | ||||
| Document Type: المقالة الأصلية | ||||
| DOI: 10.21608/sjar.2025.416857 | ||||
 View on SCiNiTO | ||||
| Authors | ||||
| Dina Hassouna* 1; Rasha Mohamed Hamdy El-Haddad* 2; Rasha ElBolok* 3 | ||||
| 1Faculty of Business Administration, Economics and Political Science, The British University in Egypt (BUE), El-Sherouk City, Egypt | ||||
| 2School of Business Administration, Ahram Canadian University | ||||
| 3Faculty of Commerce, Accounting Department, Suez Canal University, Ismailia, Egypt and Faculty of Business Administration, Economics and Political Science,The British University in Egypt (BUE), El-Sherouk City, Egypt | ||||
| Abstract | ||||
| This study investigates the influence of key audit matters (KAMs) on earnings quality, measured by earnings per share (EPS), in Egyptian listed companies, with a particular focus on the moderating role of ownership structure. To address potential endogeneity concerns, the study employs the generalized method of moments (GMM) for panel data analysis. The findings indicate that KAM disclosures have a significant negative impact on EPS, suggesting that increased disclosure of critical audit matters is associated with a decline in earnings quality. However, this relationship is moderated by ownership structure, as concentrated ownership helps mitigate the adverse effects of KAMs on EPS. Additionally, earnings quality is positively influenced by the frequency of audit committee meetings and firm size, whereas market leverage and liquidity exert negative effects. These results contribute to the existing literature on corporate governance and audit quality by highlighting the pivotal role of ownership concentration in shaping the impact of audit-related disclosures on financial performance. | ||||
| Keywords | ||||
| Key Audit Matters (KAMS); Earnings Quality (EPS); Ownership Structure; Panel Data Analysis; Egyptian Listed Companies | ||||
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