Power and disclosure: the influence of ownership and governance on GCC audit reporting

Sara Al-Asmakh, Ahmed A. Elamer and Olayinka Uadiale

Managerial Auditing Journal, 2026, vol. 41, issue 5, 869-896

Abstract: PurposeThis study aims to explore the impact of ownership structure and board composition on Key Audit Matter (KAM) disclosures in the Gulf Cooperation Council (GCC) region, where concentrated ownership and unique governance structures prevail.Design/methodology/approachUsing a hand-collected sample of 430 nonfinancial firms listed on GCC stock exchanges from 2016 to 2021, the study examines the effects of royal, family and foreign ownership and board composition on KAM disclosures. Multiple regression models control for firm characteristics and address potential endogeneity concerns.FindingsThe results reveal a significant negative association between royal ownership and KAM disclosures, indicating that firms with royal owners report fewer KAMs. In contrast, family and foreign ownership are positively associated with KAM disclosures. Similarly, whereas royal board directors reduce KAM disclosures, foreign directors increase them.Practical implicationsUnderstanding how ownership structures and board composition influence audit transparency can guide policy reforms and investor strategies, particularly in emerging markets characterized by concentrated ownership and politically connected board members.Originality/valueTo the best of the authors’ knowledge, this study is the first to empirically examine the effects of royal, family and foreign ownership and board composition on KAM reporting in the GCC. It contrasts the role of royal influence in reducing audit transparency with the positive effect of foreign ownership and directorship. The findings extend KAM literature to developing markets, offering important implications for governance reform, audit practices and investors in emerging economies.

Keywords: Key audit matters; Extended audit reporting; Ownership structure; Board directorship; Corporate governance; Gulf Cooperation Council (GCC) (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:majpps:maj-09-2024-4503

DOI: 10.1108/MAJ-09-2024-4503

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