Institutional ownership, risk disclosure quality and the moderating impact of the audit quality: evidence from Tunisia

Purpose The paper seeks, firstly, to examine the link between the institutional ownership and the risk disclosure quality and, mainly, investigate the moderating impact of the audit quality on the bridge linking these two variables among the Tunisian-listed companies. Design/methodology/approach Data were collected through content analysis of annual reports of 38 Tunisian listed companies for the period ranging from 2014 to 2021 making, thus, a total of 304 observations. This is a longitudinal study that required a panel data analysis. Findings The study finds that the institutional ownership positively and significantly impacts the risk disclosure quality in the Tunisian context. This link is reinforced by the presence of a quality audit. Practical implications The findings of this study have meaningful implications for stakeholders enabling them to make better-informed decisions, regulators and standard-setters allowing them to impose more stringent rules and for investors helping them in their choices. Originality/value The main originality of this study lies in providing empirical evidence on the moderating impact of the audit quality on the link between the institutional ownership and the risk disclosure quality. Furthermore, this study expands the literature as it explores the Tunisian context which is an underexplored context in literature.