Does audit quality moderate the relationship between corporate risk-taking and firm performance?

Yong Chia Chia and Mohd Ashari Bakri (2024) Does audit quality moderate the relationship between corporate risk-taking and firm performance? Voice of Academia, 20. pp. 1-26. ISSN 2682-7840

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URL: https://www.researchgate.net/publication/381962611...

Abstract

This study investigates the moderating effect of audit quality on the relationship between corporate risk-taking and firm performance. Data for this research were sourced from DataStream, and annual reports were obtained from the Bursa Malaysia website. Panel data analysis was utilized to analyze the data, specifically employing pooled OLS, random effects, and fixed effects models. Robust standard error estimation was applied to address potential serial correlation and heteroscedasticity issues. The study underscores the complex interplay between corporate risk-taking, audit quality, and firm performance. The findings indicate that audit quality does not moderate the relationship between corporate risk-taking and firm performance. While the role of audit quality is generally essential, it appears to be a less critical factor in managing corporate risk behavior and firm performance. Nevertheless, the significance of audit quality should not be underestimated by investors, practitioners, and regulators, as it remains vital for enhancing transparency and reducing information asymmetry in various key areas.

Item Type:	Article
Keyword:	Shariah compliance, corporate risktaking, firm performance, Malaysia.
Subjects:	H Social Sciences > HC Economic history and conditions > HC10-1085 Economic history and conditions K Law > KBP Islamic law > KBP1-4860 Islamic law. Shariah. Fiqh > KBP490-4860 Furã# al-fiqh. Substantive law. Branches of law > KBP639-1154 Mu#~mal~t
Department:	FACULTY > Labuan Faculty of International Finance
Depositing User:	ABDULLAH BIN SABUDIN -
Date Deposited:	14 Oct 2024 10:04
Last Modified:	14 Oct 2024 10:04
URI:	https://eprints.ums.edu.my/id/eprint/41222

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