دور جودة المراجعة وحوكمة الشركات في تقليل مخاطر الاستثمار في اسواق الأوراق المالية

Abstract

Abstract This research investigated the role of audit qualilty and corporate govemance inreducing investment risk in the Stock Market. The research problem is represented in the lack of certainty which encompasses the outcomes of future events in the sphere of investment in financial securities, which is represented in the verification of future cash flows of expected return on investment. That is to say, there is a potential exposure to incur financial lossesas a result of expected fluctuations of future retums. Therefore, investors in the stock marketshould search for other means to reduce. such risks via audit quality and effective implementation of corporate governance: /\ The research aimed to know the effect of audit quality and corporate governance oninvestment decisions in the stock market and such risks as the safme may encounter. The research also aimed to clarify the significance of the role of corporate govemance and audit quality,as well as the extent to which it contributes to provide for indispensable information to make sound decisions in the stock market. To resolve the research problem the following hypotheses have been tested: First hypothesis: audit quality helps reduce investment risk in the stock markets. Second hypothesis: audit quality affects corporate governance to ensure investment decisions risk reductionin the Khartoum Stock Exchange Market. Third hypothesis: commitment to the principles of corporate governancereduces investment risk in the stock market. Fourth hypothesis: corporate governance mechanisms affectinvestment risk in the stock market. The research used the deductive approach to determine the research pivots and set the hypotheses, the inductive approach to test the extent of the validity of the hypotheses, the historical approach*;.,to review prior literature,the descriptive and analytical statistics,as statistical tools to collect and analyse data. The research, on the other hand, used the Statistical Package for the Social Sciences program (SPSS) to measure the conielation between the research variable, using some necessary measurements for instance,arithmeticalimean,non-parametrieChi-Square test, correlation coefficient and simple and multiple regression coefficients. The research has proved said hypotheses and reached a number of research findings the most important of which are the following: 1- Audit quality has helped reduce impacts of investment risk in the Khartoum Stock Exchange Market by the determination and detection of impacts of risks on the efficiency of investment decisions. 2~ The commitment of the auditor to increase the level of the quality of his professional performance,by boosting the activation of corporate governance,reduces investment decisions riskin the Khartoum Stock Exchange Market.

3- Boards of directors of companies listed on the Khartoum Stock Exchange Market, disclosedfor shareholders, any differences arising between the audit committee and the external auditor, on one hand, and the risk management unit, on the other, in respect of investment decisions risk. 4- Audit committee helpedincrease credibility of extemal audit reports, which in tum positively affectedthe reduction of investment risk in Khartoum Stock Exchange Market. Based on said findings the research recommended the following: . The commitment of auditors to increase the level of the quality of their professional performance, to reduce investment risk. The research highly recommended activating the role of Accountancy and Audit Profession Organization Council to have a keen interest in the level of the quality of professional performance of audit and accountancy firms, in order to reduce investment decisions risk inthe Khartoum Stock Exchange Market. Board of directors of the Khartoum Stock Exchange Market should activate prerequisites of registry and enrollment in the same, pursuant to the provisions of corporate governance,to reduce investment risk. The research fully recommended activating the role of various mechanisms of corporate governance, towards investmentdecisions risk inthe Khartoum Stock Exchange Market.