The Effect of Audit Quality on the Extent of Voluntary Disclosure: Companies Listed in the Tunisian Stock Exchange
- 377 Downloads
This study attempts to identify the effect of some audit quality characteristics on the level of voluntary disclosure in annual reports. Namely, using panel data analysis, empirical study is conducted through a sample of 29 firms from the Tunisian Stock Exchange covering the period 2009 to 2011. Therefore, a web-based search was performed locating the corporate websites of the sample firms and the official site of the Tunisian Stock Exchange. We observe that both auditor industry specialization and Big 4 listener network improve the level of voluntary disclosure. Our findings complement prior research in this area and have policy implications that the quality of audit provided by a Big 4 auditor or auditor industry specialization is evident for enhancement of voluntary disclosure.
KeywordsVoluntary disclosure Audit quality Joint auditor Auditor industry specialization
- Alfaraih, M., & Alanezi, F. (2012). The Effectiveness of joint auditor requirements in promoting corporate disclosure quality. Arab Journal of Administrative Sciences, 19(2), 245–270.Google Scholar
- Ali, A. (2014). Ownership structure and voluntary disclosure level in emerging market: evidence from Tunisia. International Conference on Innovation & Engineering Management, Tunisia (IEM-2014).130-140.Google Scholar
- Al-Shammari, B. (2008). Voluntary disclosure in Kuwait corporate annual reports. Review of Business Research, 1, 10–30.Google Scholar
- Arnold, J., Moizer, P., & Noreen, E. (1984). Investment appraisal methods of financial analysts: A comparative study of U.S. and U.K. practices. International Journal of Accounting, 19(2), 1–18.Google Scholar
- Ball, R., Jayaraman, S., & Shivakumar, L. (2012). Audited financial reporting and voluntary disclosure as compliments: A test of the confirmation hypothesis. Journal of Accounting and Economics, 53(136), 166.Google Scholar
- DeFond, M. L. (1992). The Association Between Changes in Client Firm Agency Costs and Auditor Switching. Auditing: A Journal of Practice and Theory, 11(1), 16–31.Google Scholar
- Depoers, F. (2000). L'offre volontaire d'information des sociétés cotées: concept et mesure. Comptabilité-Contrôle-Audit, 6(2), 115–131.Google Scholar
- Klein, B.R., & Leffler K. (1981). The role of market forces in assuring contractual performance. Journal of political economy, 89(4), 615–641.Google Scholar
- Labelle R. (2002). The Statement of Corporate Governance Practices (SCGP), A Voluntary Disclosure and Corporate governance Perspective, SSRN Working paper http://ssrn.com/author=221390. 28 p.
- Sadegh, B., Reza, Z., & Farzad, F. (2013). Examining the effect of auditing quality on nonfinancial information disclosure quality. Interdisciplinary Journal of Contemporary Research In Business, 4(12), 802–810.Google Scholar
- Safari, M., Momeni, A., & Reza, A. (2011). The Effect of Corporate Board Characteristics on InformationAsymmetry: Case of the Iranian Listed Firms. American Journal of Scientific Research, 37, 12–19.Google Scholar