The Impact of Intangible Assets Investments on Audit Fees under the Moderate Role of Board Directors Compensation: An Empirical Study on Firms Listed on the Egyptian Stock Exchange

This research aims to examine the intangible assets investments on audit fees under the Moderate Role of Managerial Executive Compensation in the Egyptian Context.
The study methodology relies on the content analysis approach, by examining and analysis of the annual reports for a sample of Firms listed on the Egyptian Stock Exchange, consisting of (82) firms for different economic sectors during the period from 2019 to 2024, with a total of (492) views.
Using the Multiple Linear Regression model based on the panel data analysis method and the fixed-effects model, The results of the statistical analysis concluded the following: First, There is a positive significant impact of investments in intangible assets on the audit fees of firms listed on the Egyptian Stock Exchange, which means that increasing the firms intangible assets investments leads to higher audit fees, due to the increased degree of risks related to the evaluation of these assets, which requires increased time and effort to perform the audit. Second, The study provided applied evidence indicating the existence of an a negative impact of the compensatory bonuses with its three indicators (salaries and allowances of board members, cash bonuses for board members, total salaries, allowances and cash bonuses for board members) on the relationship between intangible assets investments and audit process fees for firms listed on the Egyptian Stock Exchange, which means that the Board of Directors’ bonuses are one of the internal mechanisms for corporate governance and raising the effectiveness and efficiency of internal control and audit systems, especially when increasing investments in intangible assets, which is reflected in reducing audit risks and thus auditors reducing audit fees.