The Moderating Effect of Firm Characteristics on the Relationship between the Audit Style and Firm-pair Earnings Comparability: An Evidence from Listed Firms on the Egyptian Stock Exchange

Purpose – This research aims to study and investigate the relationship between audit style earnings comparability. Also, examines influence of some firm-specific characteristics, as moderating variables, on this relationship. Design/Methodology Ordinary Least-Squares (OLS) regression multiple regressions are used test hypotheses. The sample in current consists 57 non-financial firms listed Egyptian Stock Exchange (EGX) during 2016–2019 resulting a final 1,039 firm-pair year observations. Findings researcher concludes that style, measured by whether each is audited same firm, has significant positive effect comparability, differences discretionary accruals firm-pairs. Besides, comparability been strengthened under presence firm size variable, but it does not vary leverage profitability variables. These findings robust since results sensitivity analyses, using Big 4 operating cash flows alternative measures respectively, support basic analysis. However, additional analysis indicate all characteristics have which, turn, means negative comparability. Originality/value To best researcher’s knowledge, there relatively limited evidence earnings, firm-pairs, its association with Furthermore, implications for researchers, firms, regulatory bodies who seek enhance quality financial statements emerging economies.