The Impact of Market-Related Variables on Forward-Looking Disclosure in the Annual Reports of Non-Financial Egyptian Companies
The main objective of this study is to test the
relationship between numbers of variables representing the firm
characteristics (market-related variables) and the extent of voluntary
disclosure levels (forward-looking disclosure) in the annual reports of
Egyptian firms listed on the Egyptian Stock Exchange. The results
show that audit firm size is significantly positively correlated (in all
the three years) with the level of forward-looking disclosure.
However, industry type variable (which divided to: industries,
cement, construction, petrochemicals and services), is found being
insignificantly association with the level of forward-looking
information disclosed in the annual reports for all the three years.
[1] Abd-Elsalam, O. H., & Weetman, P.," Introducing international
accounting standards to an emerging capital market: relative familiarity
and language effect in Egypt," Journal of International Accounting,
Auditing and Taxation, 12(1), 63-84, 2003.
[2] Ahmed, K.," Disclosure policy choice and corporate characteristics: A
study of Bangladesh," Asia Pacific Journal of Accounting, 3, 183-203,
1996.
[3] Ahmed, K., & Courtis, J. K.," Associations between corporate
characteristics and disclosure levels in annual reports: a meta-analysis,"
The British Accounting Review, 31(1), 1999.
[4] Ahmed, K., & Nicholls, D.," The impact of non-financial company
characteristics on mandatory disclosure compliance in developing
countries: The case of Bangladesh," The International Journal of
Accounting, 29(1), 62, 1994.
[5] Akhtaruddin, M.," Corporate mandatory disclosure practices in
Bangladesh," The International Journal of Accounting, 40(4), 399-422,
2005.
[6] Aljifri, K.," Annual report disclosure in a developing country: the case
of the UAE," Advances in Accounting, 24(1), 93-100, 2008.
[7] Aljifri, K., & Hussainey, K.," The determinants of forward-looking
information in annual reports of UAE companies," Managerial Auditing
Journal, 22(9), 881- 894, 2007.
[8] Alsaeed, K.," The association between firm-specific characteristics and
disclosure; The case of Saudi Arabia," Managerial Auditing Journal,
21(5), 476-496, 2006.
[9] Aly, D., Simon, J., & Hussainey, K.," Determinants of corporate internet
reporting: evidence from Egypt," Managerial Auditing Journal, 25(2),
182-202, 2010.
[10] Archambault, J. J., & Archambault, M. E.," A multinational test of
determinants of corporate disclosure," The International Journal of
Accounting, 38(2), 173-194, 2003.
[11] Barako, D. G., Hancock, P., & Izan, H.," Factors influencing voluntary
corporate disclosure by Kenyan companies.,"Corporate Governance: An
International Review, 14(2), 107-125, 2006.
[12] Belkaoui, A., & Kahl, A. L.," Corporate financial disclosure in Canada,"
Canadian Certified General Accountants' Association, 1978.
[13] Beretta, S., & Bozzolan, S.," A framework for the analysis of firm risk
communication," The International Journal of Accounting, 39(3), 265-
288, 2004.
[14] Brown, A. M., Tower, G., & Taplin, R.," Human resources disclosures
in the annual reports of Pacific Island countries- entities," Asia Pacific
Journal of Human Resources, 43(2), 252, 2005.
[15] Camfferman, K., & Cooke, T. E.," An analysis of disclosure in the
annual reports of UK and Dutch companies," Journal of International
Accounting Research, 1(1), 3-30, 2002.
[16] Chow, C. W., & Wong-Boren, A.," Voluntary financial disclosure by
Mexican corporations," Accounting Review, 533-541, 1987.
[17] CICA.," Management-s Discussion and Analysis; Guidance on
Preparation and Disclosure", Ottawa: Canadian Institute of Chartered
Accountants, 2001.
[18] Cooke, T. E.," Disclosure In The Corporate Annual Reports Of Swedish
Compa," Accounting and Business Research, 19(74), 113, 1989.
[19] Cooke, T. E.," An assessment of voluntary disclosure in the annual
reports of Japanese corporations," The International Journal of
Accounting, 26(3), 174-189, 1991.
[20] Cooke, T. E.," The Impact of Size, Stock Market Listing and Industry
Type on Disclosure in the Annual Reports of Japanese Listed
Corporations,"Accounting and Business Research, 22(87), 229. 1992.
[21] Cooke, T. E., & Wallace, R.," Global surveys of corporate disclosure
practices and audit firms: a review essay," Accounting and Business
Research, 20(77), 47-57,1989.
[22] Craswell, A. T., & Taylor, S. L.," Discretionary disclosure of reserves
by oil and gas companies: An economic analysis," Journal of Business
Finance & Accounting, 19(2), 295-308, 1992.
[23] Deegan, C., & Gordon, B.," A study of the environmental disclosure
practices of Australian corporations," Accounting and Business
Research, 26(3), 187-199, 1996.
[24] Firth, M.," Impact of size, stock market listing, and auditors on
voluntary disclosure in corporate annual reports," Accounting and
Business Research, 9, pp.273,1979.
[25] Forker, J. J.," Corporate governance and disclosure quality," Accounting
and Business Research, 22(86), 111-124, 1992.
[26] Haniffa, R. M., & Cooke, T. E.," Culture, corporate governance and
disclosure in Malaysian corporations,"Abacus, 38(3), 317-349, 2002.
[27] Hassan, O. A. G., Giorgioni, G., & Romilly, P.," The extent of financial
disclosure and its determinants in an emerging capital market: the case
of Egypt," International Journal of Accounting, Auditing and
Performance Evaluation, 3(1), 41-67, 2006.
[28] Hossain, M., Perera, M. H. B., & Rahman, A. R.,"Voluntary disclosure
in the annual reports of New Zealand companies," Journal of
International Financial Management & Accounting, 6(1), 69, 1995.
[29] Hossain, M., Tan, L. M., & Adams, M.," Voluntary disclosure in an
emerging capital market: some empirical evidence from companies
listed on the Kuala Lumpur stock exchange," Dept.of Accountancy,
Massey University, 1994.
[30] Hussainey, K., "A study of the ability of (partially) automated disclosure
scores to explain the Information content of annual report narratives for
future earnings", PhD thesis, Manchester University, Manchester,
2004.
[31] Hussainey, K., Schleicher, T., & Walker, M.,"Undertaking large-scale
disclosure studies when AIMR-FAF ratings are not available: the case of
prices leading earnings," Accounting and Business Research,
33(4), 275-294, 2003.
[32] Inchausti, A. G.," The influence of company characteristics and
accounting regulation on information disclosed by Spanish firms,"
European Accounting Review, 6(1), 45-68, 1997.
[33] Jennifer Ho, L. C., & Taylor, M. E.," An Empirical Analysis of Triple
BottomÔÇÉLine Reporting and its Determinants: Evidence from the United
States and Japan," Journal of International Financial Management
& Accounting, 18(2), 123-150, 2007.
[34] Lang, M., & Lundholm, R.," Cross-sectional determinants of analyst
ratings of corporate disclosures," Journal of Accounting Research, 31(2),
246-271, 1993.
[35] Li, F.," The Determinants and Information Content of the Forwardlooking
Statements in Corporate Filings-A Naive Bayesian Machine
Learning Approach," SSRN eLibrary, 2008.
[36] Malone, D., Fries, C., & Jones, T.," An empirical investigation of the
extent of corporate financial disclosure in the oil and gas industry,"
Journal of accounting auditing and finance,8, 249 -249, 1993.
[37] McNally, G.M., Eng., L.H. and Hasseldine, C.R.,"Corporate finance
reporting in New Zealand: an Analysis of user preferences, corporate
characteristics and disclosure practices for Discretionary information,"
Accounting &Business Research, Vol.13, pp.11-20, 1982.
[38] Naser, K.," Comprehensiveness of disclosure of non-financial
companies: Listed on the Amman financial market," International
Journal of Commerce and Management, 8(1), 88-119, 1998.
[39] Naser, K., Al-Khatib, K., & Karbhari, Y.," Empirical evidence on the
depth of corporate information disclosure in developing countries: the
case of Jordan," International Journal of Commerce and Management,
12(3/4), 122-155, 2002.
[40] Owusu-Ansah, S.," The impact of corporate attribites on the extent of
mandatory disclosure and reporting by listed companies in Zimbabwe,"
The International Journal of Accounting, 33(5), 605-631, 1998.
[41] Parsa.S., "Non-Financial Information Disclosure Communication in
Large UK Companies", PhD Thesis, Middlesex University, UK, 2001.
[42] Patton, J., & Zelenka, I.," An empirical analysis of the determinants of
the extent of disclosure in annual reports of joint stock companies in the
Czech Republic," European Accounting Review, 6(4), 605 -626,
1998.
[43] Raffournier, B.," The determinants of voluntary financial disclosure by
Swiss listed companies," European Accounting Review, 4(2), 261-
280,1995.
[44] Roberts, R. W.," Determinants of corporate social responsibility
disclosure: an application of stakeholder theory," Accounting,
Organizations and Society, 17(6), 595-612, 1992.
[45] Singhvi, S. S., & Desai, H. B.," An empirical analysis of the quality of
corporate financial disclosure," The Accounting Review, 46(1), 129-
138, 1971.
[46] Stephen, O.-A.," The impact of corporate attribites on the extent of
mandatory disclosure and reporting by listed companies in Zimbabwe,"
The International Journal of Accounting, 33(5), 605-631, 1998.
[47] Wallace, R. S. O., & Naser, K.," Firm-specific determinants of the
comprehensiveness of mandatory disclosure in the corporate annual
reports of firms listed on the stock exchange of Hong Kong," Journal of
Accounting and Public Policy, 14(4), 311-368,1995.
[48] Wallace, R. S. O., Naser, K., & Mora, A.," The relationship between the
comprehensiveness of corporate," Accounting and Business Research,
25(97), 41, 1994.
[49] Wang, K., & Claiborne, M. C.," Determinants and consequences of
voluntary disclosure in an emerging market: Evidence from China,"
Journal of International Accounting, Auditing and Taxation, 17(1), 14-
30, 2008.
[50] Ward, M.," Summary financial statements: an analysis of the adoption
decision," A research note. The British Accounting Review, 30(3), 249-
260, 1998.
[51] Williams, S. M.," Voluntary environmental and social accounting
disclosure practices in the Asia-Pacific region: An international
empirical test of political economy theory," The International Journal of
Accounting, 34(2), 209-238, 1999.
[1] Abd-Elsalam, O. H., & Weetman, P.," Introducing international
accounting standards to an emerging capital market: relative familiarity
and language effect in Egypt," Journal of International Accounting,
Auditing and Taxation, 12(1), 63-84, 2003.
[2] Ahmed, K.," Disclosure policy choice and corporate characteristics: A
study of Bangladesh," Asia Pacific Journal of Accounting, 3, 183-203,
1996.
[3] Ahmed, K., & Courtis, J. K.," Associations between corporate
characteristics and disclosure levels in annual reports: a meta-analysis,"
The British Accounting Review, 31(1), 1999.
[4] Ahmed, K., & Nicholls, D.," The impact of non-financial company
characteristics on mandatory disclosure compliance in developing
countries: The case of Bangladesh," The International Journal of
Accounting, 29(1), 62, 1994.
[5] Akhtaruddin, M.," Corporate mandatory disclosure practices in
Bangladesh," The International Journal of Accounting, 40(4), 399-422,
2005.
[6] Aljifri, K.," Annual report disclosure in a developing country: the case
of the UAE," Advances in Accounting, 24(1), 93-100, 2008.
[7] Aljifri, K., & Hussainey, K.," The determinants of forward-looking
information in annual reports of UAE companies," Managerial Auditing
Journal, 22(9), 881- 894, 2007.
[8] Alsaeed, K.," The association between firm-specific characteristics and
disclosure; The case of Saudi Arabia," Managerial Auditing Journal,
21(5), 476-496, 2006.
[9] Aly, D., Simon, J., & Hussainey, K.," Determinants of corporate internet
reporting: evidence from Egypt," Managerial Auditing Journal, 25(2),
182-202, 2010.
[10] Archambault, J. J., & Archambault, M. E.," A multinational test of
determinants of corporate disclosure," The International Journal of
Accounting, 38(2), 173-194, 2003.
[11] Barako, D. G., Hancock, P., & Izan, H.," Factors influencing voluntary
corporate disclosure by Kenyan companies.,"Corporate Governance: An
International Review, 14(2), 107-125, 2006.
[12] Belkaoui, A., & Kahl, A. L.," Corporate financial disclosure in Canada,"
Canadian Certified General Accountants' Association, 1978.
[13] Beretta, S., & Bozzolan, S.," A framework for the analysis of firm risk
communication," The International Journal of Accounting, 39(3), 265-
288, 2004.
[14] Brown, A. M., Tower, G., & Taplin, R.," Human resources disclosures
in the annual reports of Pacific Island countries- entities," Asia Pacific
Journal of Human Resources, 43(2), 252, 2005.
[15] Camfferman, K., & Cooke, T. E.," An analysis of disclosure in the
annual reports of UK and Dutch companies," Journal of International
Accounting Research, 1(1), 3-30, 2002.
[16] Chow, C. W., & Wong-Boren, A.," Voluntary financial disclosure by
Mexican corporations," Accounting Review, 533-541, 1987.
[17] CICA.," Management-s Discussion and Analysis; Guidance on
Preparation and Disclosure", Ottawa: Canadian Institute of Chartered
Accountants, 2001.
[18] Cooke, T. E.," Disclosure In The Corporate Annual Reports Of Swedish
Compa," Accounting and Business Research, 19(74), 113, 1989.
[19] Cooke, T. E.," An assessment of voluntary disclosure in the annual
reports of Japanese corporations," The International Journal of
Accounting, 26(3), 174-189, 1991.
[20] Cooke, T. E.," The Impact of Size, Stock Market Listing and Industry
Type on Disclosure in the Annual Reports of Japanese Listed
Corporations,"Accounting and Business Research, 22(87), 229. 1992.
[21] Cooke, T. E., & Wallace, R.," Global surveys of corporate disclosure
practices and audit firms: a review essay," Accounting and Business
Research, 20(77), 47-57,1989.
[22] Craswell, A. T., & Taylor, S. L.," Discretionary disclosure of reserves
by oil and gas companies: An economic analysis," Journal of Business
Finance & Accounting, 19(2), 295-308, 1992.
[23] Deegan, C., & Gordon, B.," A study of the environmental disclosure
practices of Australian corporations," Accounting and Business
Research, 26(3), 187-199, 1996.
[24] Firth, M.," Impact of size, stock market listing, and auditors on
voluntary disclosure in corporate annual reports," Accounting and
Business Research, 9, pp.273,1979.
[25] Forker, J. J.," Corporate governance and disclosure quality," Accounting
and Business Research, 22(86), 111-124, 1992.
[26] Haniffa, R. M., & Cooke, T. E.," Culture, corporate governance and
disclosure in Malaysian corporations,"Abacus, 38(3), 317-349, 2002.
[27] Hassan, O. A. G., Giorgioni, G., & Romilly, P.," The extent of financial
disclosure and its determinants in an emerging capital market: the case
of Egypt," International Journal of Accounting, Auditing and
Performance Evaluation, 3(1), 41-67, 2006.
[28] Hossain, M., Perera, M. H. B., & Rahman, A. R.,"Voluntary disclosure
in the annual reports of New Zealand companies," Journal of
International Financial Management & Accounting, 6(1), 69, 1995.
[29] Hossain, M., Tan, L. M., & Adams, M.," Voluntary disclosure in an
emerging capital market: some empirical evidence from companies
listed on the Kuala Lumpur stock exchange," Dept.of Accountancy,
Massey University, 1994.
[30] Hussainey, K., "A study of the ability of (partially) automated disclosure
scores to explain the Information content of annual report narratives for
future earnings", PhD thesis, Manchester University, Manchester,
2004.
[31] Hussainey, K., Schleicher, T., & Walker, M.,"Undertaking large-scale
disclosure studies when AIMR-FAF ratings are not available: the case of
prices leading earnings," Accounting and Business Research,
33(4), 275-294, 2003.
[32] Inchausti, A. G.," The influence of company characteristics and
accounting regulation on information disclosed by Spanish firms,"
European Accounting Review, 6(1), 45-68, 1997.
[33] Jennifer Ho, L. C., & Taylor, M. E.," An Empirical Analysis of Triple
BottomÔÇÉLine Reporting and its Determinants: Evidence from the United
States and Japan," Journal of International Financial Management
& Accounting, 18(2), 123-150, 2007.
[34] Lang, M., & Lundholm, R.," Cross-sectional determinants of analyst
ratings of corporate disclosures," Journal of Accounting Research, 31(2),
246-271, 1993.
[35] Li, F.," The Determinants and Information Content of the Forwardlooking
Statements in Corporate Filings-A Naive Bayesian Machine
Learning Approach," SSRN eLibrary, 2008.
[36] Malone, D., Fries, C., & Jones, T.," An empirical investigation of the
extent of corporate financial disclosure in the oil and gas industry,"
Journal of accounting auditing and finance,8, 249 -249, 1993.
[37] McNally, G.M., Eng., L.H. and Hasseldine, C.R.,"Corporate finance
reporting in New Zealand: an Analysis of user preferences, corporate
characteristics and disclosure practices for Discretionary information,"
Accounting &Business Research, Vol.13, pp.11-20, 1982.
[38] Naser, K.," Comprehensiveness of disclosure of non-financial
companies: Listed on the Amman financial market," International
Journal of Commerce and Management, 8(1), 88-119, 1998.
[39] Naser, K., Al-Khatib, K., & Karbhari, Y.," Empirical evidence on the
depth of corporate information disclosure in developing countries: the
case of Jordan," International Journal of Commerce and Management,
12(3/4), 122-155, 2002.
[40] Owusu-Ansah, S.," The impact of corporate attribites on the extent of
mandatory disclosure and reporting by listed companies in Zimbabwe,"
The International Journal of Accounting, 33(5), 605-631, 1998.
[41] Parsa.S., "Non-Financial Information Disclosure Communication in
Large UK Companies", PhD Thesis, Middlesex University, UK, 2001.
[42] Patton, J., & Zelenka, I.," An empirical analysis of the determinants of
the extent of disclosure in annual reports of joint stock companies in the
Czech Republic," European Accounting Review, 6(4), 605 -626,
1998.
[43] Raffournier, B.," The determinants of voluntary financial disclosure by
Swiss listed companies," European Accounting Review, 4(2), 261-
280,1995.
[44] Roberts, R. W.," Determinants of corporate social responsibility
disclosure: an application of stakeholder theory," Accounting,
Organizations and Society, 17(6), 595-612, 1992.
[45] Singhvi, S. S., & Desai, H. B.," An empirical analysis of the quality of
corporate financial disclosure," The Accounting Review, 46(1), 129-
138, 1971.
[46] Stephen, O.-A.," The impact of corporate attribites on the extent of
mandatory disclosure and reporting by listed companies in Zimbabwe,"
The International Journal of Accounting, 33(5), 605-631, 1998.
[47] Wallace, R. S. O., & Naser, K.," Firm-specific determinants of the
comprehensiveness of mandatory disclosure in the corporate annual
reports of firms listed on the stock exchange of Hong Kong," Journal of
Accounting and Public Policy, 14(4), 311-368,1995.
[48] Wallace, R. S. O., Naser, K., & Mora, A.," The relationship between the
comprehensiveness of corporate," Accounting and Business Research,
25(97), 41, 1994.
[49] Wang, K., & Claiborne, M. C.," Determinants and consequences of
voluntary disclosure in an emerging market: Evidence from China,"
Journal of International Accounting, Auditing and Taxation, 17(1), 14-
30, 2008.
[50] Ward, M.," Summary financial statements: an analysis of the adoption
decision," A research note. The British Accounting Review, 30(3), 249-
260, 1998.
[51] Williams, S. M.," Voluntary environmental and social accounting
disclosure practices in the Asia-Pacific region: An international
empirical test of political economy theory," The International Journal of
Accounting, 34(2), 209-238, 1999.
@article{"International Journal of Business, Human and Social Sciences:54704", author = "Bassam Baroma", title = "The Impact of Market-Related Variables on Forward-Looking Disclosure in the Annual Reports of Non-Financial Egyptian Companies", abstract = "The main objective of this study is to test the
relationship between numbers of variables representing the firm
characteristics (market-related variables) and the extent of voluntary
disclosure levels (forward-looking disclosure) in the annual reports of
Egyptian firms listed on the Egyptian Stock Exchange. The results
show that audit firm size is significantly positively correlated (in all
the three years) with the level of forward-looking disclosure.
However, industry type variable (which divided to: industries,
cement, construction, petrochemicals and services), is found being
insignificantly association with the level of forward-looking
information disclosed in the annual reports for all the three years.", keywords = "Forward-looking disclosure, market-related variables, annual reports, Egyptian Stock Exchange.", volume = "7", number = "6", pages = "1531-6", }
