Governance mechanisms and earnings management practices: evidence from Egypt

Abousamak, Ahmed; Shahwan, Tamer Mohamed

doi:10.1504/ijcg.2018.094515

Cited by 7 publications

(3 citation statements)

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“…Thus, we control for FE, which is measured as sales to assets (Israa et al, 2021). We further control for free float (FF), which is a proxy for the ownership structure, which is measured as a percentage of j CORPORATE GOVERNANCE j traded shares (Abousamak and Shahwan, 2018). Lastly, we control for the sector (SEC), which is a dummy variable for the sector in which a firm is active (Elghuweel et al, 2017).…”

Section: Study Variablesmentioning

confidence: 99%

“…Previous research has shown that firm size (FZ) has a significant impact on FT (Klein, 2002;Elnahass et al, 2022). Large firms face more scrutiny from outsiders and, as a result, are more likely to have stricter CG systems that improve FT. As a result, we control for FZ, which is calculated as the natural logarithm of total assets at the end of the fiscal year (Abousamak and Shahwan, 2018). Following Francis and Wang (2004), we also control for firm performance using firm profitability (FP), firm growth (FG) and firm efficiency(FE).…”

Section: Study Variablesmentioning

confidence: 99%

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Corporate governance, financial transparency and currency devaluation shocks: evidence from Egypt

Hassaan

Salah

2023

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Purpose This study aims to investigate the association between corporate governance and financial transparency, using the moderating role of an Egyptian currency devaluation decision as a policy shock. Design/methodology/approach Data was collected for a sample of companies listed on the Egyptian stock exchange from 2014 to 2019. To control for time-invariant unobserved heterogeneity, the authors analyse panel data using an estimated generalised least squares regression model. Findings The findings underline the pitfalls of assuming that corporate governance mechanisms are effective regardless of circumstances and support the complementary roles of a number of theories in interpreting the empirical findings. Research limitations/implications This study is limited to non-financial companies and includes only corporate board and audit committee governance mechanisms. The study results have important implications for policymakers, international lending institutions, investors and accounting standards setters. It is of particular importance to policymakers in other less-developed countries with similar economic conditions. Originality/value To the best of the authors’ knowledge, this study is the first empirical attempt to provide evidence of the impact of a currency devaluation shock on the relationship between corporate governance and financial transparency within the Egyptian context as an example of a transitional economy. Hence, it provides a significant theoretical and empirical contribution to the literature.

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Section: Study Variablesmentioning

confidence: 99%

Section: Study Variablesmentioning

confidence: 99%

Corporate governance, financial transparency and currency devaluation shocks: evidence from Egypt

Hassaan

Salah

2023

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“…First, prior research has analyzed the relationship between various board characteristics and earnings quality (Abousamak and Shahwan, 2018;Elsayed, and Elshandidy, 2020;Elsayed et al, 2022Elsayed et al, , 2023Habbash et al, 2010;Osma and Noguer, 2007). However, previous research on the relationship between board characteristics and Roles of board of directors earnings quality has largely focused on large companies in developed countries.…”

Section: Introductionmentioning

confidence: 99%

Roles of board of directors and earnings management across SMEs life cycle: evidence from the UK

Hassan,

Amin,

Mostafa

et al. 2023

IJAIM

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Purpose This study aims to examine the role of the board of directors in affecting earnings management practices across small- and medium-sized enterprises (SMEs) life cycle. Design/methodology/approach Data is collected from 280 SMEs listed on the London Stock Exchange during the period of 2009–2016. Fixed effects regression analysis is used to test the hypotheses. Findings This study shows that the impact of the board of directors' roles on earnings management practices varies depending on the SMEs life cycle stage. In the introduction, growth and decline stages of SMEs, the wealth creation role of the board is negatively significant with earnings management, while the wealth protection role of the board is positively significant in the growth and maturity phases. Results suggest that the board's responsibility to create wealth deters early-stage earnings management strategies, while protecting shareholder interests, in latter stages, leads to a decrease in earnings management. Practical implications The findings suggest that corporate governance should be customized to the specific stage of the SMEs life cycle. Additionally, different life cycle stages may impose different requirements on corporate boards to shape the effectiveness of these mechanisms and constrain earnings management practices. Originality/value To the best of the authors’ knowledge, this study offers one of the first insights on the UK SMEs to understand how board functions and earnings management practices vary over SMEs life cycles. It will offer important information on the effect of board features on earnings management in SMEs in the UK and is anticipated to be of importance to policymakers, regulators, investors and practitioners.

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The sharing through corporate sustainability for improving corporate performance in state-owned firms

Khan

Weili

2023

Environ Sci Pollut Res

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Governance mechanisms and earnings management practices: evidence from Egypt

Cited by 7 publications

References 0 publications

Corporate governance, financial transparency and currency devaluation shocks: evidence from Egypt

Corporate governance, financial transparency and currency devaluation shocks: evidence from Egypt

Roles of board of directors and earnings management across SMEs life cycle: evidence from the UK

The sharing through corporate sustainability for improving corporate performance in state-owned firms

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