CEO characteristics and audit report lag: evidence from Egypt

Mosa Abdelgelil Amin, Eman Mohamed Abdelmaged, Awad Elsayed Ibrahim and Tarek Abdelfattah

International Journal of Accounting & Information Management, 2024, vol. 33, issue 1, 32-67

Abstract: Purpose - This study aims to investigate the relationship between Chief Executive Officer (CEO) characteristics and audit report lag (ARL) in Egypt, an emerging economy characterized by high power distance and a culture of secrecy. The study utilizes a theoretical framework that integrates agency theory, stewardship theory, and upper echelons theory as the foundation for examining this relationship. Design/methodology/approach - The sample consists of 587 firm-year observations from non-financial firms listed on the EGX100, covering the period from 2012 to 2019. The primary variable of the study (ARL) is measured using different proxies. The analysis utilizes both Ordinary Least Squares (OLS) and logistic regression models, with additional analysis considering CEO power and using board gender diversity as a moderating variable. Findings - The study finds that CEO characteristics significantly affect ARL, demonstrating a negative association between CEO ownership, founder status, family ties, duality and ARL. These findings remain robust after a series of tests using alternative measures. Additional analysis reveals that CEO power is negatively and significantly related to ARL. Interestingly, the negative association between CEO characteristics and ARL is more pronounced in boards without female members. Originality/value - Although extensive research has been conducted on the factors determining ARL, few studies have examined the impact of CEO characteristics on ARL, particularly in emerging economies such as Egypt. The business environment in Egypt is characterized by high power distance and a secretive culture, providing a unique context for this study.

Keywords: CEO characteristics; CEO power; Audit report lag; Emerging economies; Egypt (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijaimp:ijaim-03-2024-0096

DOI: 10.1108/IJAIM-03-2024-0096

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