Journal of the Knowledge Economy

, Volume 10, Issue 1, pp 59–73 | Cite as

The Effect of Audit Quality on the Extent of Voluntary Disclosure: Companies Listed in the Tunisian Stock Exchange

  • Ali AhmadiEmail author
  • Abdelfettah Bouri


This study attempts to identify the effect of some audit quality characteristics on the level of voluntary disclosure in annual reports. Namely, using panel data analysis, empirical study is conducted through a sample of 29 firms from the Tunisian Stock Exchange covering the period 2009 to 2011. Therefore, a web-based search was performed locating the corporate websites of the sample firms and the official site of the Tunisian Stock Exchange. We observe that both auditor industry specialization and Big 4 listener network improve the level of voluntary disclosure. Our findings complement prior research in this area and have policy implications that the quality of audit provided by a Big 4 auditor or auditor industry specialization is evident for enhancement of voluntary disclosure.


Voluntary disclosure Audit quality Joint auditor Auditor industry specialization 


  1. Alfaraih, M., & Alanezi, F. (2012). The Effectiveness of joint auditor requirements in promoting corporate disclosure quality. Arab Journal of Administrative Sciences, 19(2), 245–270.Google Scholar
  2. Ali, A. (2014). Ownership structure and voluntary disclosure level in emerging market: evidence from Tunisia. International Conference on Innovation & Engineering Management, Tunisia (IEM-2014).130-140.Google Scholar
  3. Al-Shammari, B. (2008). Voluntary disclosure in Kuwait corporate annual reports. Review of Business Research, 1, 10–30.Google Scholar
  4. Arnold, J., Moizer, P., & Noreen, E. (1984). Investment appraisal methods of financial analysts: A comparative study of U.S. and U.K. practices. International Journal of Accounting, 19(2), 1–18.Google Scholar
  5. Ball, R., Jayaraman, S., & Shivakumar, L. (2012). Audited financial reporting and voluntary disclosure as compliments: A test of the confirmation hypothesis. Journal of Accounting and Economics, 53(136), 166.Google Scholar
  6. Barros, C. P., Boubaker, S., & Hamrouni, A. (2013). Corporate Governance and Voluntary Disclosure in France. Journal of Applied Business Research, 29(2), 1–17.CrossRefGoogle Scholar
  7. Beattie, V., & Smith, S. J. (2012). Evaluating Disclosure Theory using the Views of UK Finance Directors in the Intellectual Capital Context. Accounting and Business Research, 42(5), 471–494.CrossRefGoogle Scholar
  8. Benali, A. (2013). The Shareholders Confidence and Effectiveness of the Joint Auditors: Empirical Validation in the French Context. International Journal of Business and Management, 8(11), 76–84.CrossRefGoogle Scholar
  9. Bradbury, M. E. (1992). Voluntary disclosure of financial segment data: New Zealand evidence. Accounting and Finance, 32(91), 15–26.CrossRefGoogle Scholar
  10. Brockman, P., Chung, D. Y., & Yan, X. (2009). Block Ownership, Trading Activity and Market Liquidity. Journal of Financial and Quantitative Analysis, 44(6), 1403–1426.CrossRefGoogle Scholar
  11. Chalmers, K., & Godfrey, J. (2004). Reputation costs: the impetus for voluntary derivative financial instrument reporting. Accounting, Organizations and Society, 29(2), 95–125.CrossRefGoogle Scholar
  12. Cheung, C. F., Cheung, C. F., Li, M. L., Shek, W. Y., Lee, W. B., & Tsang, T. S. (2007). A systematic approach for knowledge auditing: a case study in transportation sector. Journal of Knowledge Management, 11(4), 140–158.CrossRefGoogle Scholar
  13. Datar, S. M., Feltham, G. A., & Hughes, J. S. (1991). The role of audits and audit quality in valuing new issues. Journal of Accounting and Economics, 14, 3–49.CrossRefGoogle Scholar
  14. DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3(3), 183–199.CrossRefGoogle Scholar
  15. DeFond, M. L. (1992). The Association Between Changes in Client Firm Agency Costs and Auditor Switching. Auditing: A Journal of Practice and Theory, 11(1), 16–31.Google Scholar
  16. Depoers, F. (2000). L'offre volontaire d'information des sociétés cotées: concept et mesure. Comptabilité-Contrôle-Audit, 6(2), 115–131.Google Scholar
  17. El Assy, M. G. (2015). The Effect of Joint Audit on Audit Quality: Empirical Evidence from Companies Listed on the Egyptian Stock Exchange. International Journal of Accounting and Financial Reporting., 5(2), 195–207. doi: 10.5296/ijafr.v5i2.8431.CrossRefGoogle Scholar
  18. Elder Randal, J. (2015). Audit Firm Rotation, Auditor Specialization, and Audit Quality in the Municipal Audit Context. Journal of Governmental & Nonprofit Accounting, 4, 73–100. doi: 10.2308/ogna-51188. American Accounting Association.CrossRefGoogle Scholar
  19. Eng, L. L., & Mak, Y. T. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22, 325–345.CrossRefGoogle Scholar
  20. Fama, E. F. (1980). Agency problem and the theory of the firm. Journal of Political Economy, 82(2), 288–307.CrossRefGoogle Scholar
  21. Farrar, D., & Glauber, R. (1967). Multicollinearity in regression analysis: the problem revisited. The Review of Economic and Statistics., 49(1), 92–107.CrossRefGoogle Scholar
  22. Firth, M. (1979). The impact of size, stock market listing, and auditors on voluntary disclosure in corporate annual reports. Accounting and Business Research, 9, 273–280.CrossRefGoogle Scholar
  23. Habib, A., & Bhuiyan, B. U. (2011). Audit firm industry specialization and the audit report lag. Journal of International Accounting, Auditing and Taxation, 20, 32–44.CrossRefGoogle Scholar
  24. Habib, A. (2011). Audit firm industry specialization and audit outcomes: Insights from academic literature. Research in Accounting Regulation, 23(2), 114–129.CrossRefGoogle Scholar
  25. Hammersley, J. S. (2006). Pattern Identification and Industry‐Specialist Auditors. The Accounting Review, 81(2), 309–336. doi: 10.2308/accr.2006.81.2.309.CrossRefGoogle Scholar
  26. Healy, M., & Palepu, G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31, 405–440.CrossRefGoogle Scholar
  27. Hu, J., Huang, K., Kuse, J., Su, G., & Wang, K. (1997). Customer Information Quality and Knowledge Management: A Case Study Using Knowledge Cockpi. Journal of Knowledge Management, 1(3), 225–236. doi: 10.1108/EUM0000000004596.CrossRefGoogle Scholar
  28. Yip, J. Y. T., Lee, R. W. B., & Tsui, E. (2015). Examining knowledge audit for structured and unstructured business processes: a comparative study in two Hong Kong companies. Journal of Knowledge Management, 19(3), 514–529.CrossRefGoogle Scholar
  29. Klein, B.R., & Leffler K. (1981). The role of market forces in assuring contractual performance. Journal of political economy, 89(4), 615–641.Google Scholar
  30. Kumar, G., Wilder, W. M., & Stocks, M. H. (2008). Voluntary accounting disclosures by US listed asian companies. Journal of International Accounting Research, 7(1), 25–50.CrossRefGoogle Scholar
  31. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58, 3–27.CrossRefGoogle Scholar
  32. Labelle R. (2002). The Statement of Corporate Governance Practices (SCGP), A Voluntary Disclosure and Corporate governance Perspective, SSRN Working paper 28 p.
  33. Lakhal, F. (2005). Voluntary Earnings Disclosures And Corporate Governance: Evidence From France. The Review of Accounting and Finance., 4(3), 64–85.CrossRefGoogle Scholar
  34. Leventis, S., & Weetman, P. (2004). Voluntary disclosures in an emerging capital market: Some evidence from the Athens Stock Exchange. Advances in International Accounting, 17, 227–250.CrossRefGoogle Scholar
  35. Lombardi, R., Coluccia, D., & Solimene, S. (2016). Exploring Financial Risks from Corporate Disclosure: Evidence from Italian Listed Companies. Journal of the Knowledge Economy, 7(1), 309–327.CrossRefGoogle Scholar
  36. Martins, M. M., Morais, A. I., Isidro, H., & Laureano, R. (2016). Intellectual Capital Disclosure: the Portuguese Case. Journal of the Knowledge Economy. doi: 10.1007/s13132-016-0412-6.CrossRefGoogle Scholar
  37. Mohd Ghazali, N. A., & Weetman, P. (2006). Perpetuating traditional influences: Voluntary disclosure in Malaysia following the economic crisis Journal of International Accounting. Auditing and Taxation, 15(2), 226–248.CrossRefGoogle Scholar
  38. Petersen, C., & Plenborg, T. (2006). Voluntary disclosure and information asymmetry in Denmark. Journal of International Accounting, Auditing and Taxation, 15(2), 127–149.CrossRefGoogle Scholar
  39. Piot, C., & Janin, R. (2004). Audit quality, corporate governance and earning management in France. European Accounting Review, 16(2), 429–454. doi: 10.1080/09638180701391030.CrossRefGoogle Scholar
  40. Raffournier, B. (1995). The determinants of voluntary financial disclosure by Swiss listed companies. The European Accounting Review, 4(2), 261–280.CrossRefGoogle Scholar
  41. Sadegh, B., Reza, Z., & Farzad, F. (2013). Examining the effect of auditing quality on nonfinancial information disclosure quality. Interdisciplinary Journal of Contemporary Research In Business, 4(12), 802–810.Google Scholar
  42. Safari, M., Momeni, A., & Reza, A. (2011). The Effect of Corporate Board Characteristics on InformationAsymmetry: Case of the Iranian Listed Firms. American Journal of Scientific Research, 37, 12–19.Google Scholar
  43. Smaili, N., Labelle, R., & Stolowy, H. (2009). La publication d’une information financière non conforme à la loi et aux normes: déterminants et conséquences. Comptabilite Controle Audit, 15, 159–198.CrossRefGoogle Scholar
  44. Uyar, A., Kilic, M., & Bayyurt, N. (2013). Association between firm characteristics and corporate voluntary disclosure: Evidence from Turkish listed companies. Intangible Capital, 9(4), 1080–1112.CrossRefGoogle Scholar
  45. Watson, A., Shrives, P., & Marston, C. (2002). Voluntary disclosure of accounting ratios in the UK. British Accounting Review, 34(4), 289–313. doi: 10.1006/bare.2002.0213.CrossRefGoogle Scholar
  46. Xiao, J. Z., Yang, H., & Chow, C. W. (2004). The Determinants And Characteristics of Voluntary Internet-based Disclosure By Listed Chinese Companies. Journal of Accounting and Public Policy, 23, 191–225.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2017

Authors and Affiliations

  1. 1.Faculty of economics and managementSfaxTunisia

Personalised recommendations