The influence of audit quality disclosures on investor perception and investment likelihood: An experimental study focused on Dutch audit quality disclosures

This article investigates how engagement-related Audit Quality Indicator (AQI) disclosures, specifically partner and manager involvement and auditor-training hours, affect non-professional investors’ perceptions of financial-reporting reliability and investment likelihood in a Dutch context. In a 2 × 2 + control between-subjects experiment (n = 108) participants assessed AQIs related to the audit of a fictional listed company. Results show that high partner and manager involvement enhances both perceived reliability and investment likelihood, while low involvement reduces them. The addition of a training-hours disclosure works as a potential remedy for the negative impact of low partner and manager involvement but has no incremental effect when involvement is already high. The findings demonstrate that comprehensive AQI disclosures strengthen investor confidence.