Preview

The Impact of Corporate Governance on the Timeliness of Corporate Internet Reporting by Egyptian Listed Companies

Good Essays
Open Document
Open Document
10145 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Impact of Corporate Governance on the Timeliness of Corporate Internet Reporting by Egyptian Listed Companies
The current issue and full text archive of this journal is available at www.emeraldinsight.com/0307-4358.htm

MF 34,12

848

The impact of corporate governance on the timeliness of corporate internet reporting by Egyptian listed companies
Amr Ezat and Ahmed El-Masry
Plymouth Business School, Plymouth, UK
Abstract
Purpose – This study seeks to examine the key factors that affect the timeliness of corporate internet reporting (CIR) by the Egyptian listed corporations on the Cairo and Alexandria Stock Exchange. Design/methodology/approach – The authors use firm characteristics and corporate governance variables to investigate the influence on the timeliness of CIR. They also develop a disclosure index to measure the timeliness of CIR for the listed Egyptian corporations. Findings – The primary analysis finds a significant relationship between the timeliness of CIR and firm size, type of industry, liquidity, ownership structure, board composition and board size. The results indicate that firms typically in the service sector, that are large and have a high rate of liquidity, a high proportion of independent directors, a large number of board directors and a high free float disclose more timely information on their web sites. Furthermore, a significant association between the entire independent variables and some items of timeliness of CIR is found. Originality/value – This study is one of the first empirical studies to investigate the relationship between the corporate governance and the timeliness of CIR in an emerging market. Keywords Corporate governance, Egypt, Financial reporting, Stock exchanges, Online operations Paper type Research paper

Managerial Finance Vol. 34 No. 12, 2008 pp. 848-867 # Emerald Group Publishing Limited 0307-4358 DOI 10.1108/03074350810915815

1. Introduction Timeliness has long been recognised as one of the qualitative attributes of general purpose financial reports (American Institute of Certified Public Accountants (AICPA),
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Rsm220-Week 01 Slides
    • 2259 Words
    • 10 Pages

    Rsm220-Week 01 Slides

    Role of Financial Reporting • Financial statements and financial reporting • Accounting and capital allocation •Stakeholders Objective of Financial Reporting •Management bias •Users’ needs Standard Setting • Need to develop standards • Parties involved in standard setting • Standard setting in a political environment GAAP • GAAP hierarchy •Professional judgement • Role of ethics Challenges Facing Financial Reporting • Globalization of companies and capital markets • Impact of technology • Changing nature of the economy • Increased requirement for accountability…

    • 2259 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    Accg 871
    • 492 Words
    • 2 Pages

    Accg 871

    Q2. How do both Corporate Governance and Integrated Reporting fit in the Australian Financial Reporting Framework?…

    • 492 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Embraer Novo Mercado Analysis
    • 2348 Words
    • 10 Pages

    Embraer Novo Mercado Analysis

    It is believed that the adoption of corporate governance best practices can increase the market value of the company as well as lower its risk. Greater transparency can stimulate a distinct perception of the market regarding the management of the company and a better interpretation of financial information, both for investors and for ratings agencies. This may result, respectively, in a more satisfactory level of liquidity and a better classification of company’s debt, therefore granting the company more access to credit with lower interest.…

    • 2348 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    Ethics in Accounting
    • 561 Words
    • 3 Pages

    Ethics in Accounting

    The Financial Accounting Standards Board (FASB) has been working for ten years to bridge the gap between the United States’ Generally Accepted Accounting Principles (GAAP) and the International Accounting Standards Board (IASB). As part of this movement, Russell Golden, the chairman of the FASB, indicated that he would like to focus on making corporate disclosures more consistent. By doing so, it would be easier for investors to compare companies from different sectors. The FASB is “working on a framework to improve, coordinate, and possibly reduce the volume of corporate disclosures” (Chasan, 2013). This is decidedly important in an effort to remain relevant to the economy. Standardized accounting principles have been integral in economic and industrial advances, the inability to compare financial information led to the Great Depression. In the internet economy where access to financial information is readily available, comparable and relevant information is important for keeping capital costs down. Golden noted that while the FASB is striving to make the standards more consistent, they acknowledge that their ultimate priority are the users of GAAP financial statements.…

    • 561 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Long-Term Price Earning Ratio
    • 12705 Words
    • 51 Pages

    Long-Term Price Earning Ratio

    Journal of Business Finance & Accounting, 33(7) & (8), 1063–1086, September/October 2006, 0306-686X doi: 10.1111/j.1468-5957.2006.00621.x…

    • 12705 Words
    • 51 Pages
    Powerful Essays
    Read More
  • Best Essays

    World Moving toward Three Versions of IFRS: IASB IFRS, EU IFRS, and US IFRS
    • 3863 Words
    • 16 Pages

    World Moving toward Three Versions of IFRS: IASB IFRS, EU IFRS, and US IFRS

    With the introduction of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), the world is one step closer to achieving a global set of accounting standards comprehensible by different users of financial statement worldwide. The benefits of using these standards are numerous and proven by European companies that are mandated to adopt IFRSs in their financial reporting. These companies have been using IFRSs since 2005 and during these years they have seen and experienced firsthand the benefits promised. According to Cairn (2007), a survey conducted amongst European Union (EU) companies showed that companies and investors are of the opinion that it is the right decision by the EU to mandate IFRSs. Furthermore, it was found that consolidated financial statements’ qualities have improved through the adoption of IFRSs. Other benefits of having a global set of accounting standards could be the introduction of new capital market for companies that seeks international funding or investments. Investors could also make comparisons of financial performances between different companies across the world giving them more investment options. Also, corporate governance could be enhanced as financial reports follow a global set of standards. This is because more eyes are looking into financial reports resulting in more monitors in corporate reporting. In short, more investment opportunities and better corporate governance could be achieved across the world through the use of common financial language and this is the goal of the International Accounting Standards Board (IASB). With all the benefits from adopting IFRS, one would think that all countries would jump to its implementation. However, this is not the case.…

    • 3863 Words
    • 16 Pages
    Best Essays
    Read More
  • Good Essays

    A Comparision of Corporate Governance in China and India
    • 5768 Words
    • 24 Pages

    A Comparision of Corporate Governance in China and India

    Dr. Steven Mintz, California Polytechnic State University, San Luis Obispo, CA Dr. Sudha Krishnan, California State University, Long Beach, CA ABSTRACT We examine corporate governance systems in China and India and compare them to provisions of the Sarbanes-Oxley Act and NYSE listing requirements in the U.S. In China, the influence of the State as the primary investor in state-owned enterprises restricts the degree to which the board of directors can be independent decisionmakers and the board has overlapping responsibilities with the board of supervisors. China needs to convince foreign investors that state-owned enterprises and state interference will not impede the efforts of multinationals to operate in that country. In India, the influence of individual shareholders is muted because of the importance of family-owned businesses and government influence in key sectors. Unlike the U.S., in China and India the nonmanagement directors are not required to meet separately with management and the audit committee does not have to meet separately with management or the external auditors. The requirement in China and India to “comply or explain” deviations from corporate governance provisions is stronger than in the U.S. which only has a compliance certification requirement. However, in both China and India the implementation and enforcement of corporate governance provisions has been restrained due to overlapping responsibilities of regulatory authorities and a lack of enforcement. INTRODUCTION Corporate governance plays an essential role in promoting confidence in international markets. The globalization of business and need for access to international markets create a demand for strong corporate governance systems. According to a 2002 McKinsey investor opinion survey, investors who were open to paying premiums for shares were, on average, willing to pay a 25 percent premium for well-governed…

    • 5768 Words
    • 24 Pages
    Good Essays
    Read More
  • Best Essays

    he Effect of IFRS Adoption and Investor Protection on Earnings Quality Around the World
    • 1499 Words
    • 6 Pages

    he Effect of IFRS Adoption and Investor Protection on Earnings Quality Around the World

    The major strength of the paper is the importance of its research topic which is undisputable. High quality financial reporting is essential in helping investors to make informed decisions with regard to future investments in the company. Moreover, this issue is relevant for a large audience since IFRS is so widely used, in about 134 countries in the world. The chosen topic for research has the potential of offering new valuable insights to the already existing literature. Since, it is a debatable issue among academics whether IFRS adoption improves earnings quality or not.…

    • 1499 Words
    • 6 Pages
    Best Essays
    Read More
  • Better Essays

    Financial Reporting Quality: Red Flags and Accounting Warning Signs
    • 14128 Words
    • 57 Pages

    Financial Reporting Quality: Red Flags and Accounting Warning Signs

    This paper studies the relation between financial reporting quality and investment efficiency on a sample of 49,543 firm-year observations between 1980 and 2003. Financial reporting quality has been posited to improve investment efficiency, but there has been little empirical evidence supporting this claim to date. Consistent with this claim, I find that proxies for financial reporting quality are negatively associated with both firm underinvestment and overinvestment. Further, financial reporting quality is more strongly associated with underinvestment for firms facing financing constraints and with overinvestment for firms with large cash balances, which suggests that financial reporting quality mitigates information asymmetries arising from adverse selection problems and agency conflicts. Finally, the relation between financial reporting quality and investment efficiency is stronger for firms with low quality information environments. Overall, this paper has implications for research examining the determinants of investment efficiency and the economic consequences of enhanced financial reporting.…

    • 14128 Words
    • 57 Pages
    Better Essays
    Read More
  • Good Essays

    Integrated Reporting: Performance Insight Through Better Business Reporting
    • 8560 Words
    • 35 Pages

    Integrated Reporting: Performance Insight Through Better Business Reporting

    Welcome to the first edition of Integrated Reporting, our new publication which focuses on the challenge of providing better corporate reporting. Many of you reading this may not be familiar with the topic, but with the publication by the International Integrated Reporting Committee (IIRC) of its Discussion Paper, it is likely that it will be a subject that you hear more about in the future. In KPMG we have looked at this in the past simply as ‘Better Business Reporting’, since we feel that this captures the essence of the subject.…

    • 8560 Words
    • 35 Pages
    Good Essays
    Read More
  • Powerful Essays

    FINANCIAL DISCLOSURE AND ITS IMPACT ON COMMON INVESTORS OF BANGLADESH
    • 7363 Words
    • 30 Pages

    FINANCIAL DISCLOSURE AND ITS IMPACT ON COMMON INVESTORS OF BANGLADESH

    Accounting information becomes relevant if it is capable of influencing a decision maker. It helps decision maker by providing predictions about the outcomes of past, present, and future events. Before taking final decisions, users get confirmation or correction on prior expectations through information’s relevancy, timeliness, and accuracy. Based on this reliable and timely information decision makers assess the timing and uncertainty of current and future cash flows for making prudent, effective and efficient decisions for maximizing their value and making other investment decisions such as choosing a portfolio of securities. Basically, financial reports are published to serve various users like, shareholders, employees, suppliers, creditors, financial analysts, stockbrokers, management, and government agencies. Firms satisfy this demand in part by supplying accounting information, thereby enabling them to raise capital on the best available terms. An efficient financial reporting and disclosure system is crucial to country’s development of economically efficient public corporations and public securities markets, as well as the development of the economy. The financial report of an organization is much more than just the financial statements; because it reflects the overall scenario of that organization by providing financial statements along with additional information. This additional information is known as the financial disclosures. The extent and quality of disclosure within these published reports vary from company to company and also from country to country.…

    • 7363 Words
    • 30 Pages
    Powerful Essays
    Read More
  • Best Essays

    Term Paper final 1
    • 3478 Words
    • 12 Pages

    Term Paper final 1

    A company’s financial reporting amalgamates important documents to create an effective spreadsheet to simplify the financial data of an organization. It captures much of the information that organizations prepare, publish, and use. Financial reporting plays an integral role in the capital markets and economic stability and growth, and efforts to enhance its quality are vital. A Sound Financial Reporting provides us relevant, meaningful, reliable, accurate and comprehensive reporting of management stewardship whether in the form of numbers or other operating data. It is increasingly important for businesses to be financially transparent and for governments to establish a sound regulatory environment for corporate financial reporting. Sound financial reporting can benefit business by some ways just like valuing business, easy to identify items, present business to prospective buyers effectively, able to explain changes in the business over time, spend less money on accounting and consulting fees etc. When we need to sell the business accurate financial data helps a lot by many ways. These are streamlining valuation, making it easy to answer buyers' questions, confirming your company's value during due diligence, avoiding cash outlays after closing the sale. Financial reporting is the fundamental source of independently certified information about the performance of…

    • 3478 Words
    • 12 Pages
    Best Essays
    Read More
  • Powerful Essays

    Corporate Governance and Timeliness
    • 1949 Words
    • 8 Pages

    Corporate Governance and Timeliness

    INTRODUCTION Transparency is a very important component of financial reporting. Companies must disclose anything that might influence the investment decision of an informed investor. Nothing of consequence may be hidden. This rule is widespread and pervasive. Stock exchanges require it. Government agencies require it. Various accounting rulemaking bodies require it, including the Financial Accounting Standards Board in the United States and the International Accounting Standards Board. One aspect of transparency is timeliness. Generally speaking it is better to disclose information sooner rather than later, although there are some tradeoffs. For example, companies that issue their annual reports on January 1 are…

    • 1949 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Corporate Governance Performance
    • 34415 Words
    • 138 Pages

    Corporate Governance Performance

    CORPORATE GOVERNANCE AND FIRM PERFORMANCE: THE INFLUENCE OF STRUCTURES, PROCESSES, AND INFORMATION TECHNOLOGY by Douglas A Peebles…

    • 34415 Words
    • 138 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Technical Session Schedule ICISRT 2014 Final

    • 496 Words
    • 4 Pages

    Technical Session Schedule ICISRT 2014 Final

    How the websites of the Indian corporate are reporting: A survey of listed pharmaceutical companies…

    • 496 Words
    • 4 Pages
    Satisfactory Essays
    Read More

Related Topics