“The Impact of Audit Quality on the Firm Value - An Applied Study on Firms Listed in the Egyptian Stock Exchange”

Research Abstract

This research aimed to study and test The Impact of audit quality on the firm value, this will be obtained through a theoretical and applied study on a sample of 80 non-financial companies listed on the Egyptian stock exchange, during the period from 2015 to 2019 with a total of 390 observations. Through results of the basic analysis of the research hypothesis test, the research found a significant positive effect of the audit quality (as measured by the audit office size) on the market value of companies listed in the Egyptian stock exchange (as measured by Tobin's Q model). The results also indicated that there is a positive and significant effect of the firm size and financial leverage as control variables on the firm value, and there is a negative and significant effect of the firm age as a control variable on the firm value. There is also a negative, but not significant, effect of changing the behavior of fees as a control variable on the firm value.

Research Keywords

Audit Quality, Firm Value, Audit Office Size, Tobin's Q.