The conflict between IAS disclosure requirements and the secretive culture in Egypt

Dahawy, Khaled; Merino, Barbara Dubis; Conover, Teresa L.

doi:10.1016/s0897-3660(02)15024-0

Cited by 78 publications

(63 citation statements)

References 18 publications

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“…Global accounting standards, such as IFRS, are a formal structure arising from outside the organization. For example, Dahawy et al (2002) argue that the imposition of IFRS by the donor agencies in Egypt creates a low level of compliance with IFRS. Organizations adopt IFRS under the pressures of extra-organizational institutions such as the Securities and Exchange Commission, the stock exchanges, the accounting professional bodies, the IASB and donor agencies like the World Bank and the IMF.…”

Section: Institutional Theorymentioning

confidence: 99%

“…However, limited studies have been carried out to specifically examine IFRS' practices and cultural influences in developing countries (Wickramasinghe & Hopper, 2005). Dahawy, Merino, and Conover (2002) argue that socio-economic factors affect the implementation of IFRS in Egypt and that the inclination for secrecy that is embedded in Egyptian culture overrides IFRS requirements. Wickramasinghe and Hopper (2005) argue how and why cultural and political factors are relevant to accounting change in a developing country like Sri Lanka.…”

Section: Introductionmentioning

confidence: 99%

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The impact of cultural factors on the implementation of global accounting standards (IFRS) in a developing country

Nurunnabi

2015

Advances in Accounting

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Section: Institutional Theorymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The impact of cultural factors on the implementation of global accounting standards (IFRS) in a developing country

Nurunnabi

2015

Advances in Accounting

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“…In addition, Egypt tends to rank lower than developed markets in terms of the strength of their regulatory environments. Egyptian Capital Market Authority does not have an effective mechanism for monitoring compliance with IFRS or for punishing registrants for violation; no effective regulatory mechanisms exist for imposing sanctions on audit fi rms who fail to comply with IFRS ( Dahawy et al , 2002 ;Abd-Elsalam and Weetman, 2003 ;Samaha and Stapleton, 2008 ). Prior research ( Ball et al , 2000( Ball et al , , 2003Leuz et al , 2003 ;Burgstahler et al , 2006 ;Bushman and Piotroski, 2006 ;Daske et al , 2008 ) suggests that these institutional structures of code-law countries, like Egypt, give preparers incentive to issue low-quality fi nancial reports despite the mandating adoption of high quality accounting standards (IFRS).…”

Section: Original Articlementioning

confidence: 99%

Persistence of earnings and earnings components: Evidence from the emerging capital market of Egypt

Ebaid

2010

Int J Discl Gov

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The persistence of earnings and earnings components has spawned a growing body of research in developed markets. However, little is empirically known about this fundamental issue in emerging markets. The purpose of the study is to examine the persistence of earnings in Egypt, an emerging capital market, and whether earnings persistence is more attributable to cash fl ow or accrual component of earnings. On the basis of a sample of Egyptian listed fi rms, the study fi nds that earnings of Egyptian fi rms are persistent, although the persistence parameters are less than those documented in developed markets. Consistent with prior research in developed markets, the fi ndings suggest that persistence of earnings performance is attributed more to cash fl ow component than to accrual component of earnings. Also, the fi ndings reveal that the persistence of accruals is affected by their reliability, where less reliable accrual components have lower persistence than more reliable accrual components.

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“…Almost all studies examining disclosure practices in the Egyptian context find a low disclosure level (Dahawy et al, 2002;Abdelsalam and Weetman, 2003;Hassan et al, 2006;Abdelsalam and Weetman, 2007;Dahawy and Conover, 2007;Samaha and Stapleton, 2008;Hassan et al, 2009). Abdelsalam and Weetman (2003) examined annual reports of year 1995 and ends with an average disclosure level of 83%, whereas Samaha and Stapleton (2008) finds an average disclosure level of 50% in the annual reports of year 2000.…”

Section: Introductionmentioning

confidence: 99%

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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The conflict between IAS disclosure requirements and the secretive culture in Egypt

Cited by 78 publications

References 18 publications

The impact of cultural factors on the implementation of global accounting standards (IFRS) in a developing country

The impact of cultural factors on the implementation of global accounting standards (IFRS) in a developing country

Persistence of earnings and earnings components: Evidence from the emerging capital market of Egypt

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

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