Table 2 Variables and definitions
From: The impacts of interaction of audit litigation and ownership structure on audit quality
Variable | Code | Definition |
|---|---|---|
Moderating variables | ||
Large shareholder | LS1 | The percentage of shares (%) owned by Omani investors |
Large shareholder | LS2 | The percentage of shares (%) owned by GCC countries investors |
Large shareholder | LS3 | The percentage of shares (%) owned by Foreign investors |
Minority shareholders | MS | The percentage of shares (%) owned by Arab non-GCC invertors |
Independent variable | ||
Audit litigations | ALs | Binary variable, 1 if audit litigation and otherwise 0 |
Dependent variable | ||
Audit quality | AQ | Binary variable, 1 if modified audit report and otherwise 0 |
Control variables | ||
Size of the company | S | Algorithm of total assets |
Age of the company | AG | Algorithm of years |
Leverage | R | Debt-to-equity ratio |
Activity of the clients | AC | Type of sector that the company belongs to it, dummy variables: Banking and finance (1), industrial (2) and services (3) |