Digital transformation and sustainability reporting: the mediating role of audit quality in companies listed on the Palestine exchange

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides empirical evidence on the DT-SR relationship with audit quality as mediator in a developing country context, useful for extending research to other emerging markets.

🏢実務担当者:Highlights that investing in digital tools and audit quality can enhance sustainability reporting credibility, relevant for corporate reporting teams.

🏛政策担当者:Suggests that regulatory support for digital infrastructure and audit oversight can improve transparency and stakeholder trust in sustainability disclosures.

Purpose This study aims to investigate how digital transformation (DT) impacts sustainability reporting (SR) by using audit quality (AQ) as a mediating factor in Palestinian stock exchange listed companies (PEX). Design/methodology/approach This research examined 43 companies from PEX through their audited financial reports spanning from 2014 to 2023. Data analysis was performed in STATA, beginning with multiple OLS regressions followed by generalized method of moments (GMM) analysis for main estimation. The GMM functioned as the main estimation technique because it addressed endogeneity issues and unobserved variables to produce superior results for dynamic panel data analyses. Findings This research demonstrates that DT alongside AQ improvement leads to better SR and DT enhances AQ which creates a partial link to SR. Research limitations/implications This study examines Palestinian listed companies through their financial reports using secondary cross-sectional data but this method restricts findings to numerical data while omitting non-quantifiable elements; future studies need to use longitudinal and qualitative approaches to study additional elements affecting reporting practices. The research results maintain their value for Palestine because ongoing political instability together with inadequate institutional strength and insufficient funding resources block the development of digital technology. The research shows Palestinian organizations need enhanced regulatory support and digital infrastructure deployment and audit quality improvement to achieve better transparency and build stakeholder trust and enhance their SR standards. The research demonstrates that managers and policymakers require knowledge about how monitoring systems with oversight mechanisms and technological progress enhance SR results in developing countries. Originality/value This research creates fresh knowledge about DT impacts on SR and AQ for Palestinian listed companies operating in their developing market with its political and institutional obstacles. The research shows how digital tools and oversight systems enhance transparency, accountability and legitimacy while offering operational direction to managers and auditors and policymakers. The research creates an Islamic-based ethical reporting framework through its connection between amanah (trust) and responsible stewardship principles.

• openalex https://doi.org/10.1108/jiabr-08-2025-0546first seen 2026-07-24 05:56:35