The moderating effect of audit quality and COVID-19 on the dividend payout-firm performance relationship: Egypt evidence
AbstractThis study examines the moderating influence of audit quality on the relationship between dividend payout and corporate financial performance in emerging markets. Further, it investigates if the COVID-19 pandemic influences the relationship between dividend payout and corporate financial per...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2297464 |
| _version_ | 1797324458120183808 |
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| author | Ahmed Diab Samir Ibrahim Abdelazim Saleh Aly Saleh Aly |
| author_facet | Ahmed Diab Samir Ibrahim Abdelazim Saleh Aly Saleh Aly |
| author_sort | Ahmed Diab |
| collection | DOAJ |
| description | AbstractThis study examines the moderating influence of audit quality on the relationship between dividend payout and corporate financial performance in emerging markets. Further, it investigates if the COVID-19 pandemic influences the relationship between dividend payout and corporate financial performance. This study uses a sample of non-financial firms listed on the Egyptian Stock Exchange’s EGX 100 Index during 2015–2021, which was beneficial to capture the influences brought about by the COVID-19 pandemic that broke out in late 2019. Pooled Ordinary Least Square (OLS), fixed effect regressions with Robust Standard Errors, and the system GMM estimations are used to examine the research hypotheses. We found that dividend payout has a significant positive influence on corporate financial performance. However, the interaction term between dividend payout and audit quality has an insignificant influence on financial performance, which indicates the low quality of audits conducted in emerging markets. Finally, consistent with the widely reported economic consequences of the latest pandemic, the interaction term between dividend payout and COVID-19 has a significant negative effect on financial performance. This study contributes to the literature by examining the moderating influence of audit quality on the association between dividend payout and financial performance in an emerging African market. |
| first_indexed | 2024-03-08T05:56:25Z |
| format | Article |
| id | doaj.art-2da6a1cf19df4ab88eea339700da3a48 |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-03-08T05:56:25Z |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-2da6a1cf19df4ab88eea339700da3a482024-02-04T23:00:49ZengTaylor & Francis GroupCogent Business & Management2331-19752024-12-0111110.1080/23311975.2023.2297464The moderating effect of audit quality and COVID-19 on the dividend payout-firm performance relationship: Egypt evidenceAhmed Diab0Samir Ibrahim Abdelazim1Saleh Aly Saleh Aly2Accounting Department, College of Business Administration, Prince Sultan University, Riyadh, Saudi ArabiaAccounting Department, Faculty of Commerce, Beni-Suef University, Beni-Suef, EgyptAccounting Department, Faculty of Commerce, Beni-Suef University, Beni-Suef, EgyptAbstractThis study examines the moderating influence of audit quality on the relationship between dividend payout and corporate financial performance in emerging markets. Further, it investigates if the COVID-19 pandemic influences the relationship between dividend payout and corporate financial performance. This study uses a sample of non-financial firms listed on the Egyptian Stock Exchange’s EGX 100 Index during 2015–2021, which was beneficial to capture the influences brought about by the COVID-19 pandemic that broke out in late 2019. Pooled Ordinary Least Square (OLS), fixed effect regressions with Robust Standard Errors, and the system GMM estimations are used to examine the research hypotheses. We found that dividend payout has a significant positive influence on corporate financial performance. However, the interaction term between dividend payout and audit quality has an insignificant influence on financial performance, which indicates the low quality of audits conducted in emerging markets. Finally, consistent with the widely reported economic consequences of the latest pandemic, the interaction term between dividend payout and COVID-19 has a significant negative effect on financial performance. This study contributes to the literature by examining the moderating influence of audit quality on the association between dividend payout and financial performance in an emerging African market.https://www.tandfonline.com/doi/10.1080/23311975.2023.2297464Dividend payoutfinancial performanceaudit qualityCOVID-19EgyptCollins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland |
| spellingShingle | Ahmed Diab Samir Ibrahim Abdelazim Saleh Aly Saleh Aly The moderating effect of audit quality and COVID-19 on the dividend payout-firm performance relationship: Egypt evidence Cogent Business & Management Dividend payout financial performance audit quality COVID-19 Egypt Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland |
| title | The moderating effect of audit quality and COVID-19 on the dividend payout-firm performance relationship: Egypt evidence |
| title_full | The moderating effect of audit quality and COVID-19 on the dividend payout-firm performance relationship: Egypt evidence |
| title_fullStr | The moderating effect of audit quality and COVID-19 on the dividend payout-firm performance relationship: Egypt evidence |
| title_full_unstemmed | The moderating effect of audit quality and COVID-19 on the dividend payout-firm performance relationship: Egypt evidence |
| title_short | The moderating effect of audit quality and COVID-19 on the dividend payout-firm performance relationship: Egypt evidence |
| title_sort | moderating effect of audit quality and covid 19 on the dividend payout firm performance relationship egypt evidence |
| topic | Dividend payout financial performance audit quality COVID-19 Egypt Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2297464 |
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