Accounting Conservatism, Information Asymmetry and Cash Holdings

Shehata, Walid; Rashed, Ahmed

doi:10.31966/jabminternational.v28i1.826

Cited by 6 publications

(2 citation statements)

References 13 publications

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“…This study uses 96 companies listed on the Egyptian market with 672 observations except for financial sectors that exclude in this sample through the period 2014-2020 collected via the Thomson Reuters database. This study chooses this period because of political and economic stability in emerging markets like Egypt (Rashed, et al, 2018;Mohamed & Rashed, 2021;Shehata and Rashed, 2021;Rashed and Ghoniem, 2022). This table shows that three sectors included in the sample which possess real estate, food, beverages, construction, and materials sectors at 53.1% for all sectors in the sample, then come industrial goods and services, basic resources, chemicals, travel, and leisure; personal and household products at 36.5% of the total sample, then finally come in the last sectors in the sample each of telecommunication, healthcare & pharmaceuticals, oil & gas, retail and technology sectors at 10.4 % of the total sample.…”

Section: Methodsmentioning

confidence: 99%

The Impact of Information Asymmetry on the Relationship Between Board Characteristics and Capital Structure

2023

JABE

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This paper explores the role of information asymmetry in the association between board characteristics and capital structure using OLS & GMM for 96 firms listed on the Egyptian stock exchange with 672 firmobservation through the period 2014-2020 via the Thomson Reuters database. Results show that a large board size enhances strict control and forces increased debts to maximize firm value and higher board independence leads to the tendency to use less financial leverage to avoid raising risks. CEO duality leads to the use of small amounts of debt to avoid pressures and risks. Results show that Firms with high information asymmetry prefer high leverage. Finally, results clarified that board characteristics hurt capital structure in the case of countries that suffer from information asymmetry like Egypt.

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Section: Methodsmentioning

confidence: 99%

The Impact of Information Asymmetry on the Relationship Between Board Characteristics and Capital Structure

2023

JABE

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“…FS is the logarithm of total assets (Khalil and Rashed, 2023), return on assets (ROA) is determined by the ratio of net income to total assets (Khalil and Rashed, 2023), financial leverage (LEV) measured total debt scaled by total assets (Shehata andRashed, 2021: Khalil andRashed, 2023). Descriptive statistics contribute to exploring all variables' relevance in the regression model during the period 2013-2021.…”

Section: Whereasmentioning

confidence: 99%

الدور المُعدل للمنافسة فى سوق المنتج على العلاقة بين القدرة الإدارية وقابلية التقارير المالية للقراءة(باللغة الانجليزية)

عمارة

2024

مجلة الاسکندرية للبحوث المحاسبية

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This paper explores how managerial ability affects financial reporting readability and examines the moderated role of product market competition in the relationship between managerial ability and financial reporting readability. Using a sample of 48 non-financial Egyptian companies listed on the EGX100 with 432 observations through the period 2013-2021 and depending on Ordinary Least Squares (OLS) and the Generalized Method of Moments (GMM) regression models, Results exhibit that there is a negative impact of managerial ability on financial reporting readability. Moreover, product market competition has a negative effect on financial reporting readability. Nevertheless, the results show that product market competition moderates the negative effect of managerial ability on financial reporting readability in both OLS and GMM models. A robustness check confirms the positive impact of product market competition on the association between managerial ability and financial reporting readability.

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The impact of cash holding on stock returns in small and medium enterprises on the Egyptian Nile Stock Exchange

Rashed

Ghoniem

2022

Investment Management and Financial Innovations

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This paper explores the impact of cash holdings on stock returns in small and medium enterprises. The sample includes 24 SMEs listed on the Egyptian Nile Exchange, excluding service firms, with a total of 96 observations from 2016 to 2019. Data was collected from financial statements and reports obtained through an information dissemination company in Egypt. This study uses a panel data analysis with comparing all results via ordinary least squares and the generalized method of moments. The findings show a statistically significant negative effect of cash holding on stock returns in small and medium enterprises on the Egyptian Nile Exchange. Further, the evidence shows that firms with higher levels of cash holding have higher investment alternatives and then lower stock returns. This result supports the agency theory that an increase in cash holding leads to managers exploiting cash resources to achieve personal benefits, thus increasing agency costs, lowering investment efficiency, and therefore lowering stock returns. The results support the trade-off between risk and return by using cash holding to finance operational activities and investing in higher investment alternatives and then lower stock returns.

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Accounting Conservatism, Information Asymmetry and Cash Holdings

Cited by 6 publications

References 13 publications

The Impact of Information Asymmetry on the Relationship Between Board Characteristics and Capital Structure

The Impact of Information Asymmetry on the Relationship Between Board Characteristics and Capital Structure

الدور المُعدل للمنافسة فى سوق المنتج على العلاقة بين القدرة الإدارية وقابلية التقارير المالية للقراءة(باللغة الانجليزية)

The impact of cash holding on stock returns in small and medium enterprises on the Egyptian Nile Stock Exchange

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