Impact of firm characteristics on Restatements: Audit Report Lag as a mediator variable: an applied study on listed companies on the Egyptian stock Exchange

Document Type : Original Article

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Accounting and Auditing department Faculty of Commerce Damanhur University

Abstract

The study aimed to test and analyze the impact of firm characteristics on financial restatements, and test whether audit report lag mediate the relationship between firm characteristics and financial restatements. on a sample of 158 companies listed on the Egyptian stock exchange during the period from 2016-2019. The study sample is divided into two groups. the first group is the experimental group. it consists of 79 companies that re-issued their financial statements. the second group is the control group. it consists of 79 companies that did not reissue their financial statements. the two groups are identical in terms of type and nature of industry and the same year finance.
The results of the study showed that there is a negative correlation the financial restatements, and between firm size, profitability. on the other hand, there is a positive correlation between leverage and the financial restatements. also, the results showed that the audit report lag mediate the relationship between firm characteristics and financial restatements.

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