Ownership Concentration and Audit Actions
This study presents current evidence on the impact of different corporate ownership types on audit quality in Oman and potentially in other developing countries with similar institutional environments, such as GCC countries. While previous research has primarily focused on overall ownership concentr...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-09-01
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| Series: | Administrative Sciences |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2076-3387/13/9/206 |
| _version_ | 1797581757029023744 |
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| author | Hidaya Al Lawati Zakeya Sanad |
| author_facet | Hidaya Al Lawati Zakeya Sanad |
| author_sort | Hidaya Al Lawati |
| collection | DOAJ |
| description | This study presents current evidence on the impact of different corporate ownership types on audit quality in Oman and potentially in other developing countries with similar institutional environments, such as GCC countries. While previous research has primarily focused on overall ownership concentration, this study aims to examine the role of specific shareholder identities and their influence on the demand for audit quality. This research sheds light on the relationship between ownership identities and audit quality of Omani financial companies listed on the Muscat Stock Exchange from 2014 to 2020. This study employs additional analysis to mitigate potential confounding factors and ensure robust results. Additionally, a GMM test establishes the robustness of our findings, alleviating potential endogeneity concerns. The findings highlight the positive impact and significance of bank, government, and foreign ownership in promoting high audit quality. In contrast, ownership by financial institutions (non-banks) and block holder concentrations negatively and significantly impact audit quality. In addition, this study found that family members on boards play positive moderating roles in the relationship between ownership concentration and audit quality. In addition to contributing to the existing literature, this study provides valuable insights for regulatory bodies to consider the role of ownership types in their decision-making processes. Our findings also assist investors in making informed choices and offer a better understanding of how ownership structures influence audit quality for other stakeholders. The implications of this research extend beyond Oman and can be relevant to countries with similar ownership structures and regulatory frameworks. |
| first_indexed | 2024-03-10T23:09:13Z |
| format | Article |
| id | doaj.art-153911f110004c7b8d74c29e99b6d380 |
| institution | Directory Open Access Journal |
| issn | 2076-3387 |
| language | English |
| last_indexed | 2024-03-10T23:09:13Z |
| publishDate | 2023-09-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Administrative Sciences |
| spelling | doaj.art-153911f110004c7b8d74c29e99b6d3802023-11-19T09:03:53ZengMDPI AGAdministrative Sciences2076-33872023-09-0113920610.3390/admsci13090206Ownership Concentration and Audit ActionsHidaya Al Lawati0Zakeya Sanad1Accounting Department, College of Economics and Political Science, Sultan Qaboos University, P.O. Box 50, Muscat 123, OmanAccounting, Finance and Banking Department, Ahlia University, Manama P.O. Box 10878, BahrainThis study presents current evidence on the impact of different corporate ownership types on audit quality in Oman and potentially in other developing countries with similar institutional environments, such as GCC countries. While previous research has primarily focused on overall ownership concentration, this study aims to examine the role of specific shareholder identities and their influence on the demand for audit quality. This research sheds light on the relationship between ownership identities and audit quality of Omani financial companies listed on the Muscat Stock Exchange from 2014 to 2020. This study employs additional analysis to mitigate potential confounding factors and ensure robust results. Additionally, a GMM test establishes the robustness of our findings, alleviating potential endogeneity concerns. The findings highlight the positive impact and significance of bank, government, and foreign ownership in promoting high audit quality. In contrast, ownership by financial institutions (non-banks) and block holder concentrations negatively and significantly impact audit quality. In addition, this study found that family members on boards play positive moderating roles in the relationship between ownership concentration and audit quality. In addition to contributing to the existing literature, this study provides valuable insights for regulatory bodies to consider the role of ownership types in their decision-making processes. Our findings also assist investors in making informed choices and offer a better understanding of how ownership structures influence audit quality for other stakeholders. The implications of this research extend beyond Oman and can be relevant to countries with similar ownership structures and regulatory frameworks.https://www.mdpi.com/2076-3387/13/9/206audit qualityownership structurefamily membershiproyal membershipforeign ownershipgovernment ownership |
| spellingShingle | Hidaya Al Lawati Zakeya Sanad Ownership Concentration and Audit Actions Administrative Sciences audit quality ownership structure family membership royal membership foreign ownership government ownership |
| title | Ownership Concentration and Audit Actions |
| title_full | Ownership Concentration and Audit Actions |
| title_fullStr | Ownership Concentration and Audit Actions |
| title_full_unstemmed | Ownership Concentration and Audit Actions |
| title_short | Ownership Concentration and Audit Actions |
| title_sort | ownership concentration and audit actions |
| topic | audit quality ownership structure family membership royal membership foreign ownership government ownership |
| url | https://www.mdpi.com/2076-3387/13/9/206 |
| work_keys_str_mv | AT hidayaallawati ownershipconcentrationandauditactions AT zakeyasanad ownershipconcentrationandauditactions |