Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

The Impact of Audit Quality on the Relationship Between Ownership Structure and Stock Price Crash Risk in Egypt

Author(s): Eman Abdel-Wanis

This paper investigative association between audit quality, ownership structure and stock price crash risk in an Egyptian listing firms (Egx100) and to explore the interaction between ownership structure and audit quality and their impact on stock price crash risk using three models NSCKEW, DUVOL and EXTRASIG through a sample of 70 Egyptian listed firms during the period 2013-2019 using OLS , GLS, GLM and GMM regression. Results indicated that increase audit quality lead to raise stock price crash risk with OLS, GLS and GLM but a reversely by using GMM. Also, there is a positive effect of ownership structure (institutional and block holder) on stock price crash risk in the Egyptian listed firms with OLS, GLS and GLM but a negatively by sing GMM. Results show that increase audit quality play an important role in increase association between ownership structure and stock price crash risk with OLS, GLS and GLM but decrease this association by using GMM. robustness test enhances the role of audit quality (Fees) play vertical role in eliminate the relationship between ownership structure and crash risk. This paper contributes the viewpoint that support the relationship between audit quality, ownership structure and stock price crash risk through using various statistical techniques.

Get the App