The moderating effect of joint audit on the association between board effectiveness and audit quality: empirical evidence from a developing country

Purpose The current research purpose is to examine the moderating role of joint audit (JOAD) on the association between board effectiveness (BEFF) and audit quality (AQUL). Design/methodology/approach Panel data analysis and fixed-effect models were used to assess a data set that includes 305 firm-year observations collected from nonfinancial companies listed on the Egyptian Stock Exchange during the period from 2016 to 2020. Findings The results reveal that board size and the attendance ratio of independent members have a significant positive effect on AQUL. The findings also indicate that the JOAD moderates the impact of board independence, board expertise, board diversity and BEFF on AQUL. Research limitations/implications The study’s design and conclusions have limitations of generalization due to uncontrolled variables. The research can be expanded to a longer time period and multiple countries for a broader interpretation. The results corroborate the literature and foundations of corporate governance (CG) theories in emerging markets. Practical implications This paper introduces several useful insights and actionable implications for regulators, decision-makers, auditors, board members, stakeholders, investors and academicians. Social implications The study focuses on efficient CG mechanisms across a range of industries, which are vital for societal and economic development. Originality/value This research contributes to the strand literature as it has a comprehensive model that portrays JOAD as a moderator in the association between BEFF and AQUL. Additionally, this study incorporates novel variables, such as the attendance ratio of independent members, board committees and governance committee meetings.