Diverse Effects of Corporate Governance and Intellectual Capital on Audit Quality: A Quantile Regression Technique in Pakistan
Year: 2024
Type: article
Abstract: In a world that has seen increased emphasis being placed on Corporate Governance (CG) and Intellectual Capital (IC) to determine the credibility of firms, this research seeks to establish the interrelation between CG, IC, and Audit Quality (AQ) of non-financial firms operating in the PSX. This study incorporates quantile regression to investigate the effects of the CG factors – Board Size (BS), Board Independence (BI), and Ownership Concentration (OC) – and the IC dimensions, including Research and Development (RD), Employee Training (ET), and Relational Capital (RC), on AQ. Interestingly, results indicate that solid board features and specific IC spending significantly boost AQ, which is more so at greater AQ. The positive increase in both BI and OC complements enhanced governance and oversight processes; good relational capital and adequate training of employees further speak to the need for strategic investment in improving sound audit practices.
Authors: Arshad Javed, Tahir Imran Gulzar, Haroon Shafi
Institutions: Preston University, Hamdard University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4405137709