The Relationship between Firm Characteristics and Mandatory Disclosure Level: When Egyptian Accounting Standards Were First Adopted

Mustang Journal of Accounting and Finance, Vol. 5, No. 4, 2014

19 Pages Posted: 29 May 2014 Last revised: 30 May 2014

See all articles by Nermeen F. Shehata

Nermeen F. Shehata

The American University in Cairo

Khaled M. Dahawy

The American University in Cairo

Tariq Hassaneen Ismail

Faculty of Commerce

Date Written: 2014

Abstract

Egypt witnessed continuous developments in accounting regulations which led to a comprehensive set of Egyptian Accounting Standards (EAS) in June 2006, to be implemented starting 2007. It is expected that complying with high quality accounting standards would result in more adequate information disclosure. This research aims to identify companies’ disclosure level after compliance with the newly issued EAS, and test the relationship between firm characteristics and mandatory disclosure level in the Egyptian context. Firm characteristics have been divided into three groups: market-related, structure-related and performance related characteristics. The research used annual reports of 39 listed companies for the year ended December 2007. Findings reveal that the average mandatory disclosure level was 74%, while the maximum disclosure level was 83%. Results indicate that the firm characteristics with a positive significant relationship with disclosure level are company size, and auditor type, while the factor that had a negative relationship is liquidity.

Keywords: Corporate Governance, Disclosure, Egypt

JEL Classification: M40, M41, M14, M49, G34

Suggested Citation

Shehata, Nermeen F. and Dahawy, Khaled M. and Ismail, Tariq Hassaneen, The Relationship between Firm Characteristics and Mandatory Disclosure Level: When Egyptian Accounting Standards Were First Adopted (2014). Mustang Journal of Accounting and Finance, Vol. 5, No. 4, 2014, Available at SSRN: https://ssrn.com/abstract=2442474

Nermeen F. Shehata (Contact Author)

The American University in Cairo ( email )

AUC Avenue
P.O. Box 74, New Cairo 11835
Cairo
Egypt

Khaled M. Dahawy

The American University in Cairo ( email )

P.O. Box 2511
Cairo
Egypt

Tariq Hassaneen Ismail

Faculty of Commerce ( email )

Cairo University
Giza, 12613
Egypt

HOME PAGE: http://scholar.cu.edu.eg/tismail

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