A suggested measure for the quality of corporate governance in Egypt

Hassouna, Dina; Ouda, Hassan

doi:10.22495/cocv15i1art5

Cited by 2 publications

(3 citation statements)

References 70 publications

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“…To further enhance the credibility of the Egyptian capital market, the Egyptian Institute of Directors initiated a new corporate governance code in 2005 for listed companies in the Egyptian stock exchange. Hassouna and Ouda (2017) developed an objective and comprehensive corporate governance index for the Egyptian context that included four dimensions of internal corporate governance mechanisms; ownership structure, board of directors, transparency and disclosure and board audit committee. Although the code promotes companies to disclose more accurate corporate information, the actual implementation of corporate governance practices by listed companies in the Egyptian stock exchange still lags behind the recommendations (Samaha et al, 2012b).…”

Section: The Egyptian Contextmentioning

confidence: 99%

“…This choice of sub-constructs serves the purpose of relaying an overall impression about corporate governance practices in the selected companies. Moreover, according to Hassouna and Ouda (2017), most of the literature that has examined corporate governance in the Egyptian context had focused on board characteristics due to its importance.…”

Section: Conceptual Framework and Hypotheses[1]mentioning

confidence: 99%

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The adoption of CSR practices in Egypt: internal efficiency or external legitimation?

El-Bassiouny

Letmathe

2018

SAMPJ

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Purpose This study aims to focus on the factors triggering the adoption of corporate social responsibility (CSR) practices in a developing country context. The authors examine whether the adoption of CSR practices is triggered more by internal efficiency forces or external legitimation forces. As early adoptions of new systems are more likely driven by efficiency motives, the authors argue that CSR practices in developing countries at nascent stages are more likely adopted for efficiency rather than legitimation reasons. Design/methodology/approach A cross-sectional sampling design was used to collect data on the CSR practices of top listed Egyptian firms and multinationals operating in Egypt. The sample size is selected based on a purposive criterion sampling method. The final sample size consists of 110 companies operating in Egypt, which includes 54 local and 56 multinational companies. To examine the relationship between the explanatory variables of the study and CSR, multiple regression analysis was used. Findings Using data from 110 top listed local companies and multinational firms operating in Egypt, the results show a significant influence of internal corporate governance on CSR. Yet, the effects of external factors, specifically legal regulations and stakeholder pressures, on CSR are perceived to be insignificant. This finding contrasts studies from industrialized countries in the Western world where firms are often motivated to invest in CSR by external forces. Practical implications The results indicate that the adoption of CSR practices in large firms in Egypt is driven more by internal efficiency gains rather than external legitimacy pressures. The study thus presses the need for the effective enforcement of governmental laws and regulations to strengthen external institutional pressures and demands for socially responsible behavior. Social implications The results of the study indicate a perceived absence of stakeholder pressure for CSR practices. As such, raising awareness for corporate accountability amongst Egyptian consumers, employees and the general public would increase corporate incentives to improve their social and environmental performance. In addition, the concept of CSR must be cultivated in the organizational culture where high value is placed on corporate ethics and managerial values. Originality/value This study provides insights about the predominant drivers of CSR in Egypt on two different levels; the organizational and the business environment. Salient links between CSR, internal corporate governance mechanisms and external drivers such as external stakeholder and legal pressures are explored. The results of the study also emphasize the importance of internal corporate governance mechanisms and how it is perceived to be the main driver of CSR in Egypt as opposed to external influences.

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Section: The Egyptian Contextmentioning

confidence: 99%

Section: Conceptual Framework and Hypotheses[1]mentioning

confidence: 99%

The adoption of CSR practices in Egypt: internal efficiency or external legitimation?

El-Bassiouny

Letmathe

2018

SAMPJ

View full text Add to dashboard Cite

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“…This, in turn, may promote inflation of stock prices targeting an artificial shortage of floating shares or showing higher dividend prospects of firms and exploiting investors (Ball & Shivakumar, 2008;Chen, Francis, & Jiang, 2005). However, studies on the relationship between corporate governance and a firm's intrinsic value are in their infancy meaning that extensive research is yet to be carried out in this area (Grove & Lockhart, 2019;Hassouna & Ouda, 2017;Tiwari, 2016).…”

Section: Asian Economic and Financial Reviewmentioning

confidence: 99%

Measuring Firms Intrinsic Values in an Emerging Economy: Evidence from Bangladesh

Dewri

Islam

Tuz-Johra

et al. 2021

Asian Economic and Financial Review

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This study considered three parameters to measure firms' intrinsic values: corporate governance, paid-up capital size, and dividend payout policy. These were used as independent variables, and market interest rate was used as the control variable. To measure these parameters, daily trade data was observed from both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) data repositories and covered a total of 1475 firm years' disclosures from 2013 to 2017 to conclude the analysis. The study revealed that there is a significantly negative correlation with firms' intrinsic values and corporate governance due to the majority of firms failing to adhere to corporate governance guidelines and therefore generate higher intrinsic values. Also, firms in emerging economies are characterized by a high level of family ownership and lack of transparency. Similarly, there is a significant negative relationship with firms' intrinsic values and higher capital-based firms, and there is no significant relationship with the firms' intrinsic values and dividend payout policies in the emerging economy.Contribution/Originality: This study contributes to the existing literature on firms' intrinsic values by using new estimation methodology to investigate the intrinsic values of two different capital-based firms. This study is one of very few that has investigated firms' intrinsic values by considering corporate governance, paid-up capital, and dividend payout policy.

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A suggested measure for the quality of corporate governance in Egypt

Cited by 2 publications

References 70 publications

The adoption of CSR practices in Egypt: internal efficiency or external legitimation?

The adoption of CSR practices in Egypt: internal efficiency or external legitimation?

Measuring Firms Intrinsic Values in an Emerging Economy: Evidence from Bangladesh

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