Relationship between corporate governance and audit quality in the industry sector: Moderating role of firm performance

This article presents a literature review of 49 empirical studies on key audit matter (KAM) disclosure in audit reports. The study involves a structured literature review on KAM disclosure based on the reactions of stakeholders. The limitations of former studies and useful recommendations for research are stressed. Five major streams of empirical research that analyze the impact of KAM disclosure on stakeholders’ reactions are focused: (1) shareholders (e.g. investors’ perceptions of auditors’ responsibility and litigation, value relevance and investors’ decisions); (2) debtholders (e.g. loan contracting terms); (3) external auditors (e.g. audit processes and audit fees); (4) boards of directors (e.g. earnings management); and (5) other stakeholders (e.g. informational value for suppliers and customers). The authors stress that most of the included studies use experimental or archival data and analyze the impact of KAM disclosure on investor reactions in a US-American setting. As the international standard setters assume a positive impact of KAM on stakeholder reactions, mixed empirical results are found. Although there are some indications of decreased earnings management behavior, most studies find no significant changes in auditor behavior. Furthermore, there are many insignificant results with regard to shareholders’ reaction in line with our stakeholder and behavioral agency framework. The literature review is especially useful for management decisions, because firm reputation may be positively or negatively influenced by KAM regulations.

This study holds significance due to the increasing impact of influencer marketing on consumer behavior, particularly among the youth demographic in Saudi Arabia. This study aims to examine how influencer marketing influences perceived credibility and purchase intention, emphasizing the roles of transparency and cultural factors in shaping consumer behavior.
A descriptive-analytical method was utilized, the research was conducted at University of Bisha, incorporating a structured survey to gather data from 384 university students, both male and female. The sample was meticulously chosen to embody the characteristics of young consumers, a group recognized for its significant involvement with social media channels and vulnerability to influencer marketing tactics. The findings indicate that the traits of influencers play a crucial role in boosting purchase intention (β = 0.42, p < 0.001). Furthermore, the influence of brand credibility on purchase intention is significant (β = 0.51, p < 0.001), and it serves as a partial mediator in the connection between influencer characteristics and purchase intention (indirect effect = 0.27, p < 0.001). The results underscore Snapchat’s prominence as the leading platform among participants, illustrating its significance for focused influencer marketing initiatives. Marketers are advised to prioritize transparent and authentic collaborations with influencers to strengthen brand credibility and foster consumer trust. Emphasizing partnerships with influencers whose values align with students’ interests on Snapchat will enhance engagement and drive purchasing behavior. This information provides actionable direction for marketers aiming to enhance their influencer marketing approaches, cultivating enduring consumer confidence and sustainable brand development among younger demographics.

Adopting International Financial Reporting 9 is critically relevant as it significantly transforms accounting practices, particularly in credit risk management, for banks in Jordan. The primary purpose of this study is to examine the impact of implementing International Financial Reporting 9 on the financial performance and credit risk management practices of Jordanian banks. A quantitative analysis was conducted using the Difference-in-Differences approach and Fixed Effects models on data from 19 banks operating between 2012 and 2022.
The results indicate that the adoption of International Financial Reporting 9 led to a substantial increase in loan loss provisions, with a mean increase of 0.25 (t-value = 18.00). This increase in loan loss provisions negatively affected profitability metrics such as Return on Assets and Return on Equity, which showed mean decreases of 0.0857 (t-value = 4.22) post-implementation. Despite the negative impact on profitability, the findings also highlight improvements in financial transparency and stability due to more accurate credit risk assessment.
While the adoption of International Financial Reporting 9 imposes operational and financial challenges, it enhances the robustness and clarity of financial reporting in Jordanian banks.