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Purpose The purpose of this paper is to investigate the current level of voluntary corporate disclosure in the Egyptian Stock Exchange. In addition, it explores the factors influencing the extensiveness of voluntary disclosure and examines the potential consequences of such disclosure in regards to the phenomenon of earnings management. Design/methodology/approach A relevant disclosure index to the Egyptian context was adopted to assess the level of voluntary disclosure in the 2010 annual reports of the most actively traded companies listed on the Egyptian Stock Exchange. The relationship between the extent of voluntary disclosure and each specific-related factor was examined using unranked and ranked OLS regression models. Meanwhile, a system of simultaneous equations was performed using a two-stage least squares regression model in order to investigate whether companies with higher levels of voluntary disclosure exhibit lower levels of earnings management practices. Findings The results indicate that the level of voluntary disclosure is positively responsive to specific corporate attributes, namely, the type of auditing firm and the two industries of Healthcare and Pharmaceuticals, and Chemicals. However, no significant indications were found that firm size, leverage, profitability and liquidity are important determinants of corporate disclosure. Also, the results show no evidence to support the prior anticipation that a higher level of voluntary disclosure reduces the ability of managers to make use of earnings management. On the contrary, it was found that leverage and the tendency of firms to avoid reporting declines in earnings are the main drivers of the phenomenon of earnings management in Egypt. Practical implications This paper has important implications for both domestic and overseas investors in Egypt as well as the regulatory authorities in the developing economies. Originality/value The main contribution of this paper is its focus on the extent of voluntary disclosure in a developing country such as Egypt, which has a high potential for economic growth in the near future. Besides, this paper is the first to examine the relationship between the level of voluntary disclosure and the phenomenon of earnings management in the Egyptian context.

Purpose -The purpose of this paper is to assess respondents' perceptions of the quality of reported earnings in Egypt. To this end, three main issues are investigated: first, the potential incentives for engagement in earnings manipulation; second, the techniques most frequently used in manipulating earnings; and finally, the actions required to improve the quality of accounting information, including the reported earnings. Design/methodology/approach -A total of 16 semi-structured interviews are conducted in order to uncover any undisclosed issues and to supplement the results provided by a questionnaire survey distributed among three groups of respondents, namely, accounting academics, external auditors, and financial managers. Findings -The results indicate that the main incentives for manipulating earnings in Egypt are to enhance the chances of obtaining a bank loan; to sustain last year's profit performance; to report profits and to avoid reporting losses; and to achieve high-share valuation. The results also demonstrate that making inadequate provisions; capitalising rather than expensing expenditures; and overestimating the inventory value are the most frequently used techniques in earnings manipulation. Practical implications -The results could be of assistance to Egyptian external auditors and regulators in their attempt to limit the incidence of earnings manipulation. Originality/value -With a few exceptions, most of the literature on earnings management has been based on the US data. Therefore, research undertaken in a country such as Egypt, where the environment in many respects is different, may reveal a different perception of the quality of reported earnings and help determine how preparers in Egypt can further improve the quality of reported earnings.