The Impact of the Perceived Audit Quality and the Auditor's Opinion Type on the Value Relevance of Accounting Information :An Empirical Study on listed (Non-Financial) Firms in the Egyptian Stock Exchange.

Document Type : Original Article

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Accounting Department Faculty of Commerce Damnhour University Damnhour Egypt

Abstract

This research aimed to investigate the relationship between accounting information (book value, net income, net operating cash flow) and the Share's market price for the listed companies in the Egyptian Stock Exchange, and to what extent this relationship is affected by the Perceived Audit Quality and the auditor's opinion type. In order to achieve the objective of this research,An empirical study was conducted on a sample of nonfinancial companies listed in the Egyptian Stock Exchange during the period from 2012 to 2016.
 
The study found that there is a relative value relevance for each of the book value and the net income, It also founds that there is no additional incremental value relevance for net income or net operating cash flows. The results of the study indicated that Perceived Audit Quality has a significant effect on relative and incremental value relevance  of both book value and operating cash flows. In addition, there is a significant effect of the auditor's opinion type on relative value relevance of book value, net operating cash flow and net income, The auditor's opinion type also affectstheincremental value relevance of operational cash flows

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