Financial reporting timeliness and the value relevance of earnings: Evidence from banks in the MENA countries

Attia, Mouna Ben Rejeb; Lassoued, Naima; Sassi, Houda

doi:10.1080/08853908.2018.1459212

Cited by 20 publications

(12 citation statements)

References 57 publications

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“…In respect to MENA countries, our results appear to be well substantiated by those described by Ben Rejeb Attia et al (2019) and Gerged et al (2020), signifying that involving in any type of unethical practice such as EM may lead to imposing penalisation by stakeholders, and therefore, bank directors are very likely to provide high QVD to mitigate any potential fine and to be recognised as ethically accountable. Noticeably, the quality of disclosure has spectacularly raised, which could be attributed to the governments’ role in most of MENA region to improve disclosure quality and because of the series of reforms adopted by policymakers to set up a legal and institutional framework aiming to boost investor protection and attracting foreign direct investments (Kamla, 2007).…”

Section: Resultssupporting

confidence: 75%

“…The selection of commercial banks in MENA countries is of a significance stemming from their considerable financial influence in the context of an emerging economy at large (Bourgain et al , 2012). For example, according to their credit levels and banking assets, MENA countries have been ranked second in terms of banking sector development (Ben Rejeb Attia et al , 2019). Similarly, banks operate in the MENA region have embraced Basel ii regulations that attempt to enhance the transparency and credibility of disclosed information Likewise, a series of reforms have been embraced by policymakers in the majority of MENA countries to build a solid, institutional and legal framework, which, in turn, attracts external fund and boost investors’ rights protection (Buallay et al , 2020).…”

Section: Methodsmentioning

confidence: 99%

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Does the quality of voluntary disclosure constrain earnings management in emerging economies? Evidence from Middle Eastern and North African banks

Salem

Ezeani

Gerged

et al. 2020

IJAIM

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Purpose This study aims to examine the influence of the quality of voluntary disclosure (QVD) on earnings management (EM) amongst a sample of commercial banks in the Middle East and North Africa (MENA) region. Design/methodology/approach Using a sample of 1,060 bank-year observations for the period 2006–2015, this paper developed a three-dimensional framework to measure the QVD, which considers the quantity, spread and usefulness of the information. Furthermore, this study examines the QVD-EM nexus using an ordinary least squares regression model. This technique is supplemented with conducting an instrumental variable regression model and a two-stage least squares model to overcome the potential occurrence of endogeneity problems. Findings The findings suggest that QVD is negatively attributed to EM in the context of MENA banks. The findings also confirm that the quality of financial reporting is enhanced by QVD dimensions that were considered in the framework, leading banks to less engagement in EM practices. In contrast, the influence of the quantity dimension (level) of the disclosed information has an insignificant impact on EM, while the spread and usefulness dimensions of VD are negatively and significantly associated with EM in the region. Research limitations/implications Although the results are robust to various measurements and to the possible occurrence of endogeneity problems, there are a few limitations should be acknowledged, which provides opportunities for future research. For example, the sample size is relatively small due to data accessibility issues. Likewise, the findings of the research might not be appropriate for non-financial sectors. These limitations provide a good opportunity for future studies to expand on the research by covering other developing economies and, thereby, enriching the understanding offered by this study. Practical implications This study offers several implications for bank managers, academics and policymakers. Firstly, it may help managers to appreciate the function and the importance of QVD in mitigating EM. Secondly, for academics, the study provides suggestive evidence on the impact of QVD on EM; however, future research may need to consider the role of morality and ethical behaviour across different environments in reducing excessive risk-taking and constraining earnings manipulation. Finally, it provides insights for policymakers and regulators to develop a framework or guidance that can help banks in providing high-QVD in the context of developing economies. Originality/value The study distinctively develops an innovative measurement for QVD using a new multi-dimensional model. This paper also bring new evidence on QVD complexity and its impact on EM practice from an under-researched developing context, namely, the MENA region.

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Section: Resultssupporting

confidence: 75%

Section: Methodsmentioning

confidence: 99%

Does the quality of voluntary disclosure constrain earnings management in emerging economies? Evidence from Middle Eastern and North African banks

Salem

Ezeani

Gerged

et al. 2020

IJAIM

View full text Add to dashboard Cite

show abstract

“…Finally, the third test applied the random effects model, which allows for controlling unobserved heterogeneity that is fixed over time. This model has been estimated because it has been suggested that firms' specific random effects may be time invariant, like the business strategy, which does not vary over time (Ben Rejeb Attia et al, 2013, 2019), and which can impact corporate disclosure practices. To control for unobserved time invariant heterogeneity, Models (7), (8), and (9) of Table 7 have been reestimated using random effects.…”

Section: Resultsmentioning

confidence: 99%

Peering through the smokescreen: ESG disclosure and CEO personality

2022

Self Cite

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This study examines whether chief executive officer (CEO) with narcissistic tendencies are more likely to disclose ESG activities. Focusing on a sample of 118 US S&P 500‐listed companies over the period 2011–2018, the study uses the generalized estimating equation. The results indicate that a CEO with high narcissism is more likely to disclose social and corporate governance activities. These findings clarify the relationship between CEO personality traits and ESG disclosure to help investors and stakeholders with decision‐making. Further in light of these findings, regulators are recommended to reinforce the legal framework of ESG disclosure pushing for more transparency with high levels of supervision.

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“…Since most of previous studies on firms’ reporting lag address its determinants (Ben Rejeb Attia et al , 2019), there is little empirical evidence on the association between reporting lag and disclosure levels. Tower et al (1999) provide some support for the negative relation between actual reporting lag with the level of annual reporting disclosure by listed firms in the six Asia-Pacific countries.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…Tower et al (1999) provide some support for the negative relation between actual reporting lag with the level of annual reporting disclosure by listed firms in the six Asia-Pacific countries. In the Middle East and North Africa (MENA) countries, Ben Rejeb Attia et al (2019) find that disclosure and investor protection index have a negative impact on reporting lag. The literature does, however, provide evidences supporting the deliberate delay of news ( good news early, bad news late ) (Verrecchia, 1983; Begley and Fischer, 1998; Leventis and Weetman, 2004; Kothari et al , 2009; Brown et al , 2012) and the positive impact of sanctioned auditors on reporting lag (Li et al , 2022).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Interim financial reporting disclosure by listed firms in the Asia-Pacific region and influencing factors

Nguyen

2022

PAR

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Purpose This study aims to examine the levels of interim financial reporting (IR) disclosure by listed firms in the Asia-Pacific region and factors influencing these disclosure levels. Design/methodology/approach Drawing on a sample of 700 interim reports issued in 2012 by the top 100 listed firms in seven Asia-Pacific countries (Australia, Hong Kong, Malaysia, Singapore, the Philippines, Thailand and Vietnam), the author constructed a disclosure index consisting of disclosure items commonly required across the sample countries. Using this index, the study measures the extent to which listed firms in the Asia-Pacific Region comply with IR disclosure requirements. The study performs ordinary least square regression to investigate the influence of the four country-level factors including international financial reporting standard (IFRS) adoption, audit review, reporting frequency and reporting lag. Findings This research documents that IR disclosure varies significantly across the region. The IR disclosure levels are positively associated with IFRS adoption, audit review and mandatory of quarterly reporting, but negatively associated with reporting lag. Originality/value IR regulation varies across the Asia-Pacific region, but there is no existing research on the country-level factors influencing IR disclosure practices. To the best of the author’s knowledge, this is the first paper providing some insights into IR disclosure levels by listed firms in the region. It also contributes to the disclosure literature by providing empirical evidence on the country-level factors influencing these disclosure levels. Deriving from the findings, the authors offer recommendations for regulators, investors and listed firms on the issue of reviewing the regulation, using information and preparing IR.

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Financial reporting timeliness and the value relevance of earnings: Evidence from banks in the MENA countries

Cited by 20 publications

References 57 publications

Does the quality of voluntary disclosure constrain earnings management in emerging economies? Evidence from Middle Eastern and North African banks

Does the quality of voluntary disclosure constrain earnings management in emerging economies? Evidence from Middle Eastern and North African banks

Peering through the smokescreen: ESG disclosure and CEO personality

Interim financial reporting disclosure by listed firms in the Asia-Pacific region and influencing factors

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