Corporate Governance Practices and Audit Quality: An Empirical Evidence of the companies listed in Palestine Exchange (PEX)
Publication Type
Conference Paper

The aim of this study is to examine  the impact of corporate governance mechanisms 
on  audit  quality  in  Palestine.  The  sample  included  of  46  companies  listed  on  the 
Palestine Exchange for the period (2013-2015). Relevant data were collected from the 
PEX  website  and  from  the  annual  reports  of  the  sampled  companies.  Audit  quality 
was assessed using audit firm size( Big 4 or non-Big 4). To achieve the objectives of 
the  study,  binary  logistic  regression  was  used.  Results  of  the  analysis  revealed  that 
companies  with  a  high  percentages  of  ownership  concentration  tend  to  hire  a  high 
quality auditor (Big4 auditing firm), and indicated a significant positive relationship 
between  board size and  existence of audit committee  and  audit quality. In  addition, 
results  showed  a  significant  positive  relationship  between  total  asset  and  financial 
leverage  and  audit  quality.  Furthermore,  director  ownership,  board  independence, 
CEO duality were found to have no effect on audit quality. 
Based  on  the  results  of  the  study,  the  study  recommends  that  regulators  need  to 
encourage companies for more compliance with corporate governance instructions. 

Conference Title
The Role of Auditing in Enhancing Governance & Impeding Corruption- An International Conference
Conference Country
Conference Date
March 7, 2017 - March 7, 2017
Conference Sponsor
An-Najah University -