This study investigates the effect of audit quality and sustainability on
corporate investment efficiency. It examines how audit quality proxies- such as
audit firm size, audit fees, and auditor change- are associated with the
efficiency of corporate investment. It also examined how sustainability
indicators related to environmental, economic, and social disclosure are
associated with the efficiency of corporate investment. Based on a sample of
288 observations from non- financial firms listed on the EGX100 across
various economic and industrial sectors during the period 2018-2023. The
empirical study has reached a number of findings. First, there is there is a
statistically significant positive association between audit quality and corporate
investment efficiency. Specifically, the three audit quality proxies- audit firm
size, audit fees and auditor change-demonstrate a statistically significant
positive effect on corporate investment efficiency. Second, there is a
statistically significant positive association between sustainability and
corporate investment efficiency. Finally, there is a statistically relationship
between audit quality, sustainability and corporate investment efficiency. The
findings have practical implications that may be useful to managers in their
management of the firm, investors, auditors, and policy makers. By
understanding the effect of audit quality and sustainability on corporate
investment efficiency, decision makers can improve resource allocation, and
promote sustainable business strategies that contribute to long- term value
creation. |
