The Moderating Role of Audit Quality on the Relationship between CEO Overconfidence and Financial Opacity

Abstract

The purpose of this study is to examine the impact of CEO Overconfidence on Financial statement opacity using Audit Quality as a moderator variable. The sample covers 40 companies listed on the Egyptian Stock Exchange (EGX) during the period 2019-2023, which totals 200 observations. The firm’s financial statements are used to collect data from measuring variables. To test the research hypotheses, descriptive analysis, correlation analysis, and panel data analysis are used. Empirical research shows that CEO Overconfidence has an insignificant effect on financial statement opacity. Although Audit Quality was considered a moderating variable for our study, it was found that there is a significant impact on the relationship between CEO Overconfidence and Financial statement opacity