The Impact of the Level of Voluntary Disclosure on Audit Quality of Public Shareholding Companies

Abstract

Purpose: This study aims to evaluate the impact of voluntary disclosure levels on audit quality in public shareholding companies listed on the Amman Stock Exchange (ASE).                 
Study design/methodology/approach: The study utilized regression analysis that was performed on data obtained from annual reports of public shareholding companies listed on ASE.
Sample and data: The study population consisted of all 166 Jordanian Public Shareholding Companies (JPSC) listed in ASE for the financial sector, the service sector, and the industrial sector.    
Results: The findings showed an impact of voluntary disclosure on audit quality of JPSC listed in ASE. However, the results related to the sub-hypotheses showed no significant effect of disclosure related to general information or the company's activities on audit quality. On the other hand, disclosures regarding shares and management showed a notable impact on audit quality.
Originality/value: This study contributes to several aspects. It provides new evidence on the relationship between voluntary disclosure and audit quality in the Jordanian context, which fills a gap in the current literature. It also enhances academic understanding of how disclosure practices affect audit quality, which provides a basis for future research in this area.                     
Research limitations/implications: The study specifically assessed the impact of voluntary disclosure levels on audit quality, focusing only on public shareholding companies listed on ASE. However, the results provide valuable insights for improving disclosure policies, enhancing audit quality, and fostering investor and shareholder confidence.