Abstract
Purpose: This study aimed to test the impact of the audit
committee characteristics and audit quality on the stock price crash
risk in the Egyptian business environment.
Design and Methodology: The current study adopted the content
analysis approach to exam the annual reports of a sample of (54)
from stock companies listed on the Egyptian Stock Exchange
during the period (from 2016 to 2018), with a total of (162) views,
To develop 3 models to measure this effect: the first, to measure the
impact of Audit Committee Characteristics on the stock price crash
risk(first hypothesis), and the second: to measure the impact of the
audit quality on the stock price crash risk (the second hypothesis),
Third to confirm the results of the first and second model.
Conclusion and Recommendation: The results of the current
study research concluded that the audit committee characteristics
has a negative and statistically significant effect on reducing stock
price crash risk of the study sample. Moreover, audit quality also
has a negative and statistically significant effect on reducing stock
price crash risk.
Based on the current study results: The professional bodies,
institution and practitioners should pay more attention to improve
the mechanisms of corporate governance especially the audit
committee characteristics and audit quality, in the way to improve
capital market response and reduce stock price crash risk in the
Egyptian business environment.
Originality and Value: This study contributes to accounting
literature by attempting to provide additional evidence to explain
the role of audit committee characteristics and audit quality in
reducing future stock prices crash risk in the Egyptian business
environment, as an example for emerging economies |
