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Covid-19 disclosure: do internal corporate governance and audit quality matter?

Engy ELsayed Abdelhak (Department of Accounting, The Institute of Commercial Technician in Damietta, Technological College of Portsaid, Damietta, Egypt)
Khaled Hussainey (School of Accounting, Economics and Finance, University of Portsmouth, Portsmouth, UK)
Khaldoon Albitar (School of Accounting, Economics and Finance, University of Portsmouth, Portsmouth, UK)

International Journal of Accounting & Information Management

ISSN: 1834-7649

Article publication date: 17 January 2023

Issue publication date: 31 January 2023

585

Abstract

Purpose

This study aims to examine the impact of internal corporate governance and audit quality on the level of COVID-19 disclosure in Egypt.

Design/methodology/approach

The authors use manual content analysis to measure levels of COVID-19 disclosure in the narrative sections of annual reports. The authors analyze all companies listed on the Egyptian Stock Exchange over 2020–2021. The authors use different regression models to test the research hypotheses.

Findings

The analysis adds to the literature in two crucial respects. First, it provides a measure for COVID-19 disclosure in Egypt. Second, it provides evidence that governance mechanisms (board diversity, audit committee [AC] independence), auditor type and audit opinion affect the level of COVID-19 disclosure. The higher level of COVID-19 disclosure is associated with firms with more female directors on the board, being audited by one of the big four audit firms and receiving standard clean audit opinion. While the inexistence of an AC and more executives on the AC negatively affect COVID-19 disclosure levels.

Originality/value

To the best of the authors’ knowledge, it is the only paper that examines COVID-19 disclosure in the Egyptian context. It is also the first paper that provides evidence on the impact of internal governance and audit quality on COVID-19 disclosure.

Keywords

Acknowledgements

The authors would like to thank the editor and four anonymous referees for helpful comments on this research.

Citation

Abdelhak, E.E., Hussainey, K. and Albitar, K. (2023), "Covid-19 disclosure: do internal corporate governance and audit quality matter?", International Journal of Accounting & Information Management, Vol. 31 No. 1, pp. 170-194. https://doi.org/10.1108/IJAIM-05-2022-0108

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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