Board governance and audit report lag in the light of big data adoption: the case of Egypt

Abstract

Purpose This paper aims to examine the mediating role of big data adoption (BDA) on the association between board governance (BG) and audit report lag (ARL). Design/methodology/approach This study uses data extracted from financial reports for a sample from EGX100 over the period from 2015 to 2019. This study applies content analysis approach to measure the level of BDA. This study uses ordinary least squares, structure equation modelling and principal component analysis to investigate the relationship between BG, BDA and ARL. Findings The findings indicate that BDA can be used as a predictor of ARL for companies listed on the Egyptian stock exchange. The results show that board diversity has a significant effect on ARL when BDA is used as a mediator. Research limitations/implications This study only includes technology, telecommunications and health-care industries in the sample. Practical implications This paper raises investor and stakeholder awareness for the importance of BDA and corporate governance (CG) procedures in reducing audit report delays in developing countries such as Egypt. This study can assist regulators in developing audit report requirements and enforcing regulations to guarantee timely audit report publication. Originality/value This paper provides a shred of unique evidence on the role of BDA in mediating the relationship between BG and ARL in a developing country.