The extent of corporate governance disclosure and its determinants in a developing market: The case of Egypt |
Abstract:
This paper assesses the extent of corporate governance voluntary disclosure and the impact of a comprehensive set of corporate governance (CG) attributes (board composition, board size, CEO duality, director ownership, blockholder ownership and the existence of audit committee) on the extent of corporate governance voluntary disclosure in Egypt. The measurement of disclosure is based on published data created from a checklist developed by the United Nations, which was gathered from a manual review of financial statements and websites of a sample of Egyptian companies listed on Egyptian Stock Exchange (EGX). Although the levels of CG disclosure are found to be minimal, disclosure is high for items that aremandatory under the Egyptian Accounting Standards EASs). The failure of companies to disclose such information clearly shows some ineffectiveness and inadequacy in the regulatory framework in Egypt. Moreover, the phenomenon of non-compliance may also be attributed to socio-economic factors in Egypt. Therefore, it is expected that Egyptian firms will take a long time to appraise the payback of increased CG disclosure. The findings indicate that that—ceteris paribus—the extent of CG disclosure is (1) lower for companieswith duality in position and higher ownership concentration asmeasured by blockholder ownership; and (2) increases with the proportion of independent directors on the board and firm size. The results of the study support theoretical arguments that companies disclose corporate governance information in order to reduce information asymmetry and agency costs and to improve investor confidence in the reported accounting information. The empirical evidence fromthis study enhances the understanding of the corporate governance disclosure environment in Egypt as one of the emerging markets in the Middle East
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Keywords: |
extent , corporate ,governance ,disclosure , determinants, developing market, case , Egypt |
Author(s): |
Khaled Samaha , Khaled Dahawy,Khaled Hussainey , Pamela Stapleton |
Source: |
Advances in Accounting, incorporating Advances in International Accounting 28 (2012) 168–178 |
Subject: |
پیرامون مدیریت |
Category: |
مقاله مجله |
Release Date: |
2012 |
No of Pages: |
11 |
Price(Tomans): |
0 |
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