The impact of the quality of the financial report and the choice of the auditor on maximizing the value of the enterprise from the perspective of shareholders: an empirical study on companies listed in the Egyptian Stock Exchange

Elsaiad, Ali Mohamed Ali

doi:10.21608/aljalexu.2020.123419

The impact of the quality of the financial report and the choice of the auditor on maximizing the value of the enterprise from the perspective of shareholders: an empirical study on companies listed in the Egyptian Stock Exchange

Document Type : Original Article

Author

Ali Mohamed Ali Elsaiad

Accounting department El3omlya University

10.21608/aljalexu.2020.123419

Abstract

The research aims mainly to study the effect of the financial reporting quality and the choice of the auditor on the maximization of the enterprise's value from the shareholders' perspective.
To achieve the goal of the research, an empirical study was conducted on a sample of 159 companies listed on the Egyptian Stock Exchange over 3 years during the period 2016 – 2018 to include 477 company observations in the study sample.
From the results, the researcher found that:
1. There is a positive significant relationship between the financial reporting quality and the maximization of the enterprise's value (the enterprise's economic value added) from the shareholders' perspective.
2. There is a positive significant relationship between the choice of the auditor from the from the Big 10 audit offices and the maximization of the enterprise's value from the shareholders' perspective.
3. There is a positive significant relationship between the enterprise's size and the enterprise's value from the shareholders' perspective.
4. There is a positive non-significant relationship between the rate of return on assets, the debt ratio and the enterprise's value from the shareholders' perspective.
5. In the Egyptian business environment, stakeholders rely on financial reporting, in a reasonable manner, to make decisions and evaluate enterprises.

Keywords