Value Relevance of Board Attributes: The Mediating Role of Key Audit Matter

The presence of board members with good governance attributes is value-relevant since it influences investors’ investment decisions. value relevance expected to improve the newly introduced extended audit report disclose key matters (KAMs). KAM disclosure provides information about issues faced by external auditors in auditing a company’s financial statement. Since involves discussion and negotiation between auditor, gives an indication that can be affected disclosure. Using 931 firm-year observations from firms listed on Bursa Malaysia 2016 2019, this study re-examined whether such improves KAMs. findings indicated some influenced reactions negatively. served as both indirect mediator complementary increase board’s relevance. Investors reacted less negatively companies’ values improved. provide insight into role reducing asymmetry assisting investors making support policymakers’ decisions mandate implementation ISA 701, which requires