The effect of the Covid-19 epidemic on auditing quality and the reaction of family vs non-family businesses to Covid-19: the case of Jordan

IF 3.6 Q2 MANAGEMENT
Esraa Esam Alharasis, Fairouz Mustafa
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Abstract

Purpose The purpose of this paper is to provide new scientific knowledge concerning the impact of the Covid-19 pandemic on auditing quality as determined by audit fees for both family- and non-family-owned firms in Jordan. Design/methodology/approach The authors use an ordinary least squares (OLS) regression firm-clustered standard error employing data from 200 Jordanian enterprises between 2005 and 2020 to validate this study's hypotheses. Findings The regression findings suggest that enterprises run by families are better able to handle crises and spend less on audits. Companies that are not family-owned have to spend the most on monitoring tasks since they need to take extra steps to prevent the agency problem and make their financial statements stand out from their peers in order to attract more investors. Additional analysis that stretched out throughout 2005–2022 came to the same findings. Practical implications The findings can be beneficial for authorities to better regulate and supervise the auditing sector. Political leaders, legislators, regulators and the auditing industry can all learn important lessons from the findings as they assess the growing concerns in a turbulent economic situation. The results of this research can, therefore, be utilised to reassure investors and assist policymakers in crafting workable responses to Covid-19's creation of financial problems. After the devastation caused by the coronavirus, these findings may be used to strengthen the laws that oversee Jordan's auditing sector. Originality/value In emerging nations like Jordan, where there is a clear concentration of ownership and a predominance of high levels of family ownership, and to the best of the authors' knowledge, this is the first empirical study to compare the auditing quality of family-owned versus non-family-owned enterprises. Preliminary insights into the crisis management tactics of family and non-family organisations are provided by this first empirical investigation of the consequences of the Covid-19 crisis on family-owned firms.
新冠肺炎疫情对审计质量的影响及家族企业与非家族企业对新冠肺炎的反应——以约旦为例
本文的目的是提供关于Covid-19大流行对约旦家族和非家族企业审计费用决定的审计质量影响的新科学知识。设计/方法/方法作者使用普通最小二乘(OLS)回归公司聚类标准误差,采用2005年至2020年间200家约旦企业的数据来验证本研究的假设。回归分析结果表明,家族企业处理危机的能力较强,审计支出较少。非家族企业必须在监督任务上花费最多,因为它们需要采取额外措施防止代理问题,并使其财务报表在同行中脱颖而出,以吸引更多投资者。从2005年到2022年的进一步分析得出了同样的结果。研究结果可为当局更好地规范和监督审计部门提供有益的参考。在动荡的经济形势下,政治领导人、立法者、监管机构和审计行业都可以从调查结果中吸取重要教训,以评估人们日益增长的担忧。因此,这项研究的结果可以用来安抚投资者,并帮助政策制定者制定可行的应对措施,以应对Covid-19造成的金融问题。在冠状病毒造成的破坏之后,这些发现可能被用来加强监督约旦审计部门的法律。在约旦这样的新兴国家,所有权明显集中,高水平的家族所有权占主导地位,据作者所知,这是第一个比较家族企业与非家族企业审计质量的实证研究。本文首次对Covid-19危机对家族企业的影响进行了实证调查,为家族和非家族组织的危机管理策略提供了初步见解。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.50
自引率
33.30%
发文量
51
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