Audit committee effectiveness in times of crisis: Empirical insights on key audit matters disclosure
This study investigates the relationship between audit committee (AC) effectiveness and key audit matter (KAM) disclosure in non-financial listed companies in GCC countries with COVID-19 as a moderator. This study used a static and dynamic panel regression model with 2238 observations from 2017 to...
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| Main Authors: | , , , , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Research and Development Academy
2024-12-01
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| Series: | Heritage and Sustainable Development |
| Online Access: | https://hsd.ardascience.com/index.php/journal/article/view/860 |
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| _version_ | 1841544036453711872 |
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| author | Sajead Mowafaq Alshdaifat Mohammed W.A. Saleh Marwan Mansour Abedulwale Khassawneh Mohammad Fawzi Shubita Jalal Rajeh Hanaysha Ebrahim Mohammed Al-Matari Murad Abdulsalam Qamhan Mahmaod Alrawad |
| author_facet | Sajead Mowafaq Alshdaifat Mohammed W.A. Saleh Marwan Mansour Abedulwale Khassawneh Mohammad Fawzi Shubita Jalal Rajeh Hanaysha Ebrahim Mohammed Al-Matari Murad Abdulsalam Qamhan Mahmaod Alrawad |
| author_sort | Sajead Mowafaq Alshdaifat |
| collection | DOAJ |
| description |
This study investigates the relationship between audit committee (AC) effectiveness and key audit matter (KAM) disclosure in non-financial listed companies in GCC countries with COVID-19 as a moderator. This study used a static and dynamic panel regression model with 2238 observations from 2017 to 2022. We found a negative relationship between the AC effectiveness index and KAM disclosure. However, the negative relationship between AC effectiveness and KAM disclosure is reduced by COVID-19, thus AC effectiveness decreased during the COVID-19 pandemic. Additional analysis shows that large companies with AC effectiveness disclose less KAM than small companies. Also, dynamic regression using two-step GMM results conforms to the main findings. This study is important for developing corporate governance strategies that will build stakeholders’ trust and informed financial decision-making in this context. Moreover, it provides new evidence on the effectiveness of AC and KAM disclosure during a crisis and highlights the challenges and opportunities in emerging markets in GCC countries.
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| format | Article |
| id | doaj-art-2cbf5d927e1b4409b0117c6d492d4d1a |
| institution | Kabale University |
| issn | 2712-0554 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Research and Development Academy |
| record_format | Article |
| series | Heritage and Sustainable Development |
| spelling | doaj-art-2cbf5d927e1b4409b0117c6d492d4d1a2025-01-13T03:22:15ZengResearch and Development AcademyHeritage and Sustainable Development2712-05542024-12-016210.37868/hsd.v6i2.860Audit committee effectiveness in times of crisis: Empirical insights on key audit matters disclosureSajead Mowafaq Alshdaifat0Mohammed W.A. Saleh1Marwan Mansour2Abedulwale Khassawneh3Mohammad Fawzi Shubita4Jalal Rajeh Hanaysha5Ebrahim Mohammed Al-Matari6Murad Abdulsalam Qamhan7Mahmaod Alrawad8Middle East University, JordanPalestine Technical University - Kadoorie, PalestineAmman Arab University, Jordan; Jadara University, JordanKing Faisal University, Saudi Arabia; Applied Science Private University, JordanAmman Arab University, JordanSkyline University College, United Arab EmiratesJouf University, Saudi ArabiaIbb University, YemenKing Faisal University, Saudi Arabia This study investigates the relationship between audit committee (AC) effectiveness and key audit matter (KAM) disclosure in non-financial listed companies in GCC countries with COVID-19 as a moderator. This study used a static and dynamic panel regression model with 2238 observations from 2017 to 2022. We found a negative relationship between the AC effectiveness index and KAM disclosure. However, the negative relationship between AC effectiveness and KAM disclosure is reduced by COVID-19, thus AC effectiveness decreased during the COVID-19 pandemic. Additional analysis shows that large companies with AC effectiveness disclose less KAM than small companies. Also, dynamic regression using two-step GMM results conforms to the main findings. This study is important for developing corporate governance strategies that will build stakeholders’ trust and informed financial decision-making in this context. Moreover, it provides new evidence on the effectiveness of AC and KAM disclosure during a crisis and highlights the challenges and opportunities in emerging markets in GCC countries. https://hsd.ardascience.com/index.php/journal/article/view/860 |
| spellingShingle | Sajead Mowafaq Alshdaifat Mohammed W.A. Saleh Marwan Mansour Abedulwale Khassawneh Mohammad Fawzi Shubita Jalal Rajeh Hanaysha Ebrahim Mohammed Al-Matari Murad Abdulsalam Qamhan Mahmaod Alrawad Audit committee effectiveness in times of crisis: Empirical insights on key audit matters disclosure Heritage and Sustainable Development |
| title | Audit committee effectiveness in times of crisis: Empirical insights on key audit matters disclosure |
| title_full | Audit committee effectiveness in times of crisis: Empirical insights on key audit matters disclosure |
| title_fullStr | Audit committee effectiveness in times of crisis: Empirical insights on key audit matters disclosure |
| title_full_unstemmed | Audit committee effectiveness in times of crisis: Empirical insights on key audit matters disclosure |
| title_short | Audit committee effectiveness in times of crisis: Empirical insights on key audit matters disclosure |
| title_sort | audit committee effectiveness in times of crisis empirical insights on key audit matters disclosure |
| url | https://hsd.ardascience.com/index.php/journal/article/view/860 |
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