Scholarlink

<p>This study investigates the mediation of Environmental, Social, and Governance (ESG) factors in the relationship between audit quality and value addition of non-financial firms operating in the G7 economies, a critical area that remains underexplored in contemporary literature. We use a Seemingly Unrelated Regression (SUR) system and results reveal that ESG partially and positively mediates the relationship between audit quality and value addition, offering support to both stakeholder theory and signaling theory. Interestingly, the direct impact of audit quality and value addition remains negative, contradicting agency theory, yet aligning with the premises of signaling theory. Additionally, consistent with the stakeholder theory, audit fees show a positive impact on ESG scores of firms. Theoretically, the study advances signaling theory by contextualizing its application within institutional frameworks. Practically, the study findings underscore the importance of embedding ESG practices in the overall firm strategy.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Do environmental, social, and governance factors mediate the audit fee and firm value link? Insights from G7 economies

  • 期刊论文

  • 发表日期：

    2026年6月19日

查看全文
  • Ozair Siddiqui,
  • Abdul Raheman,
  • Naveed Khan

摘要

This study investigates the mediation of Environmental, Social, and Governance (ESG) factors in the relationship between audit quality and value addition of non-financial firms operating in the G7 economies, a critical area that remains underexplored in contemporary literature. We use a Seemingly Unrelated Regression (SUR) system and results reveal that ESG partially and positively mediates the relationship between audit quality and value addition, offering support to both stakeholder theory and signaling theory. Interestingly, the direct impact of audit quality and value addition remains negative, contradicting agency theory, yet aligning with the premises of signaling theory. Additionally, consistent with the stakeholder theory, audit fees show a positive impact on ESG scores of firms. Theoretically, the study advances signaling theory by contextualizing its application within institutional frameworks. Practically, the study findings underscore the importance of embedding ESG practices in the overall firm strategy.