Document Type

Article

Publication Date

1-2025

Abstract

This study investigates the influence of key audit matters (KAMs) on earnings quality, measured by earnings per share (EPS), in Egyptian listed companies, with a particular focus on the moderating role of ownership structure. To address potential endogeneity concerns, the study employs the generalized method of moments (GMM) for panel data analysis. The findings indicate that KAM disclosures have a significant negative impact on EPS, suggesting that increased disclosure of critical audit matters is associated with a decline in earnings quality. However, this relationship is moderated by ownership structure, as concentrated ownership helps mitigate the adverse effects of KAMs on EPS. Additionally, earnings quality is positively influenced by the frequency of audit committee meetings and firm size, whereas market leverage and liquidity exert negative effects. These results contribute to the existing literature on corporate governance and audit quality by highlighting the pivotal role of ownership concentration in shaping the impact of audit-related disclosures on financial performance.

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