Corporate Governance and Disclosure Verifiability as Determinants of Disclosure Tone in the Egyptian Context

Abstract

This study explores the extent to which Corporate Governance (CG) and disclosure verifiability are represented among the key determinants of disclosure tone in the context of Egyptian companies' board of directors' annual reports. The sample includes the Egyptian EGX100 companies, listed from 2013 to 2017. This study uses a panel date with fixed effect regression model to test the main hypotheses. It employs a manual content analysis which focuses on statements as a measurement unit to calculate the disclosure tone. The net positive news is captured by calculating the variance between positive news and negative news.

Determinants of corporate governance disclosure: evidence from an emerging market

“…Fourth, the coefficient of dualrole is positive but insignificant for all firms and nonfinancial firms which is consistent with the prior finding of Ezat (2020) in Egypt and does not support H4. From theoretical underpinnings, this result is not consistent with the agency, stakeholder, and resource-dependence theories and supports stewardship theory.…”

“…Prior empirical findings between CEO duality and the level of corporate disclosure produce conflicting outcomes: First, there is no major connection (Zaheer, 2013;Hieu and Lan, 2015;Elfeky, 2017;Alnabsha et al, 2018;Elgattani and Hussainey, 2020;Ezat, 2020;Suwaidan et al, 2021); second, there is a significant positive relationship (Cunha and Rodrigues, 2018), and finally, there is a significant negative relationship (Samaha et al, 2012;Allegrini and Greco, 2013). Considering the theoretical underpinnings and empirical findings above, the fourth hypothesis is as follows:…”

“…Accounting researchers examine the various factors that influence corporate disclosure on a broad scale and propose a variety of theories to clarify this gap. Very few prior studies, such as Samaha et al (2012), Alhazaimeh et al (2014), Elfeky (2017), Alnabsha et al (2018) and Ezat (2020), have relied on several theories to inform and interpret managers' intentions to make mandatory and voluntary disclosures. These theories may present diverse understandings and interpretations of motivations.…”

“…Studies that reported a significant positive link between board composition and CGD are Samaha et al (2012), Barros et al (2013), Zeghal and Moussa (2015), Elfeky (2017), Alnabsha et al (2018), Cunha and Rodrigues (2018), Ezat (2020), Khan and Ahmad (2021). Studies with no relationship between these two variables are Aboagye-Otchere et al (2012) in Ghana; Alves et al (2012) in Portugal and Spain; Lan et al (2013) in China; Zaheer (2013) in Pakistan; Allegrini and Greco (2013), Hieu and Lan (2015) in Vietnam; Alagla (2019), Elgattani and Hussainey (2020), Shehadeh and Alitani (2021).…”

“…;Albawwat and Ali Basah, 2015;, board composition(Samaha et al, 2012;Khan and Ahmad, 2021), role duality(Alnabsha et al, 2018;Ezat, 2020), frequency of ACM(Alagla, 2019;Elgattani and Hussainey, 2020) and frequency of CGC meetings. The second group comprises ownership structure variables restricted to managerial ownership(Sepasi et al, 2016;Cunha and Rodrigues, 2018) and institutional ownership(Alnabsha et al, 2018;Suwaidan et al, 2021) because the government and foreign ownership are negligible and not relevant to the list of selected firms.…”