Culture's consequences in controlling agency costs: Egyptian evidence

Hassabelnaby, Hassan R.; Mosebach, Michael

doi:10.1016/j.intaccaudtax.2005.01.003

Cited by 33 publications

(22 citation statements)

References 28 publications

(29 reference statements)

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“…According to HassabElnaby and Mosebach (2005), the development stages that Egypt experienced can be divided into five stages: the colonial period, central planning, slow development (from 1978 to 1985), moderate development (1986)(1987)(1988)(1989)(1990), and rapid development (since 1991). Transforming an economy from a centrally planned one to another that is market-based is a long term process that requires several changes in a society's philosophy as well as its economic sectors (HassabElnaby et al, 2003).…”

Section: Economy and Accountingmentioning

confidence: 99%

“…In 1952, 76% of the Egyptian investments were controlled by the private sector. After that time, when the Egyptian revolution against the British colonialism took place, the government set a central planned economic model shifting the economy from a capitalist to a socialist one (Carana, 2002;HassabElnaby and Mosebach, 2005;Hassan, 2008). Public sector's dominance increased dramatically since then and lasted for the next three decades (Carana, 2002).…”

Section: Economy and Accountingmentioning

confidence: 99%

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Disclosure practices in Egypt: what are factors beyond the low level?

Ismail

Shehata

2012

IJEA

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In Egypt, as one of the emerging markets, mandatory disclosure of financial information on annual reports has attracted the attention of many researchers. Results of prior studies analysing disclosure level concluded that mandatory financial disclosure in annual reports is low. The purpose of this paper is to shed the light and analyse those factors affecting disclosure level in the Egyptian environment including political and economic conditions, legal system and regulatory framework, nature of the capital market, prevailing culture, and accounting practices. Our analysis suggests that secretive culture is the major reason behind the low disclosure practices found in Egypt overcoming the efforts exerted by regulators. Additionally, the paper provides the reasons that lead to the low disclosure level as follows:1 presence of uniform, secretive, and conservative accounting practices, 2 absence of a unified law governing Egyptian companies' activities and transactions 3 lack of strict enforcements imposed by the Egyptian Capital Market Authority on non-complying companies to comply with the mandatory requirements of the Egyptian accounting standards.

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Section: Economy and Accountingmentioning

confidence: 99%

Section: Economy and Accountingmentioning

confidence: 99%

Disclosure practices in Egypt: what are factors beyond the low level?

Ismail

Shehata

2012

IJEA

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“…This political and economic transition provides an interesting context within which the evolution of accounting practices and the behaviour of economic agents may be studied (see, for example, Gray et al, 1984;Doupnik and Salter, 1995;Brown and Humphreys, 1995;Humphreys, 1996;Abd-Elsalam and Weetman, 2003;HassabElnaby and Mosebach, 2005).…”

Section: Introductionmentioning

confidence: 99%

“…It is reasoned that these changes have in turn produced a change in accounting choices, so that the latter are increasingly similar to those employed in developed market-based economies (HassabElnaby and Mosebach, 2005). …”

Section: Introductionmentioning

confidence: 99%

Determinants of accounting choices in Egypt

Dey

Grinyer

Sinclair

et al. 2007

Journal of Applied Accounting Research

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In recent years, Egypt has been developing rapidly from a socialist to a fully developed market-based economy. One may expect that this economic transition towards a more capitalist orientation will influence the country's cultural and socio-economic environment, and consequently the behaviour of its corporate managers. The increasing separation of ownership and control of capital could be expected to increase agency problems associated with managerial decisions. In these circumstances, it should be interesting to identify whether 'positive accounting' hypotheses would apply in such an environment. Therefore, this paper examines the relevance to financial reporting in Egypt of some established positive accounting theory hypotheses in addition to a new hypothesis related to taxation. The evidence of the study is consistent with the validity of the conventional 'bonus' and 'debt' hypotheses and the new 'taxation' hypothesis. These conclusions are also consistent with recent empirical studies of cultural and socio-economic change in Egypt.

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“…(Arnold & Collier, 2007) (Baker & Quick, 1998) (Billings & Capie, 2009) (Bloom & Naciri, 1989) (Lindsay, 1992) (Napier, 1995) There have also been studies of Western European countries, (Diem, 1929) (Emenyonu & Gray, 1992) (Boerstler, 2006) (Heidhues & Patel, 2011), the Central and East European countries (Patton & Zelenka, 1997) (Jermakowicz & Rinke, 1996) (McGee & Preobragenskaya, 2006) (Haldma, 2004), Russia and the Commonwealth of Independent States (CIS) (Horwitz, 1963) (Hellström, 2006) (Lebow & Tondkar, 1986) (Krylova, 2003), Asia-Pacific countries (Hooi, 2007) (Hwang, Staley, Chen, & Lan, 2008) (Sudarwan & Fogarty, 1996) (Williams & Tower, 1998) (Chow, G. K. Chau, & Gray, 1995) (Chow, Deng, & Ho, 2000) (Oguri, 2002), and, to a lesser extent, countries in the Middle East and Africa and Central and South America. (HassabElnaby & Mosebach, 2005) (Buys & Schutte, 2011) (Noravesh, Dilami, & Bazaz, 2007) (Lopes, 2006) During this period, the International Accounting Standards Committee (IASC) was formed in 1973, and begins to be taken more seriously. In 2000, its International Accounting Standards (IAS) were recognized by most of the world's major stock markets.…”

mentioning

confidence: 99%

Accounting, Culture, And Emerging Economies: IFRS In The BRIC Countries

Borker

2012

JBER

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The culturally derived accounting orientations of four major emerging economies, Brazil, Russia, India and China, the BRIC countries, are examined based on the Geert Hofstede work on cultural dimensions (Hofstede, 1980) and the hypothetical derivation of related accounting values by S. J. Gray. (Gray, 1988) Keywords: IFRS in BRIC Countries; Accounting Standards in BRIC Countries INTRODUCTIONhe area of comparative international accounting has developed as a significant focus of accounting research and education since the 1980s. Much of this work consists of studies of the accounting systems of individual countries, with some regional and comparative studies. In the English speaking world, there have been studies of accounting systems and practices of the United States, the United Kingdom, Canada, Australia and New Zealand, both on an individual country basis, and as a related grouping. (Arnold & Collier, 2007) (Baker & Quick, 1998) (Billings & Capie, 2009) (Bloom & Naciri, 1989) (Lindsay, 1992) (Napier, 1995) There have also been studies of Western European countries, (Diem, 1929) (Emenyonu & Gray, 1992) (Boerstler, 2006) (Heidhues & Patel, 2011), the Central and East European countries (Patton & Zelenka, 1997) (Jermakowicz & Rinke, 1996) (McGee & Preobragenskaya, 2006) (Haldma, 2004), Russia and the Commonwealth of Independent States (CIS) (Horwitz, 1963) (Hellström, 2006) (Lebow & Tondkar, 1986) (Krylova, 2003), Asia-Pacific countries (Hooi, 2007) (Hwang, Staley, Chen, & Lan, 2008) (Sudarwan & Fogarty, 1996) (Williams & Tower, 1998) (Chow, G. K. Chau, & Gray, 1995) (Chow, Deng, & Ho, 2000) (Oguri, 2002), and, to a lesser extent, countries in the Middle East and Africa and Central and South America. (HassabElnaby & Mosebach, 2005) (Buys & Schutte, 2011) (Noravesh, Dilami, & Bazaz, 2007) (Lopes, 2006) During this period, the International Accounting Standards Committee (IASC) was formed in 1973, and begins to be taken more seriously. In 2000, its International Accounting Standards (IAS) were recognized by most of the world's major stock markets. In 2001 the IASC was renamed the International Accounting Standards Board (IASB) and its International Accounting Standards were renamed International Financial Reporting Standards (IFRS) to emphasize that the primary goal of accounting standards is to insure fair and accurate financial reporting by all entities. Growing interest in the adoption of IAS and IFRS led to new studies, both theoretical and empirical, on the accounting systems of developing and emerging economies. The introduction of studies of cultures in relationship to management and accounting orientations and practices , e.g., Hofstede, Gray, etc., has resulted in more than just individual descriptions of national accounting systems, but to truly comparative work based on a defined theoretical underpinning. IFRS issues, such as the importance of disclosure, transparency and accounting professionalism, as well as, the problems of harmonization and convergence of host country and IFRS practices in a...

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Culture's consequences in controlling agency costs: Egyptian evidence

Cited by 33 publications

References 28 publications

Disclosure practices in Egypt: what are factors beyond the low level?

Disclosure practices in Egypt: what are factors beyond the low level?

Determinants of accounting choices in Egypt

Accounting, Culture, And Emerging Economies: IFRS In The BRIC Countries

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