أثر العلاقة بین خصائص مجلس الإدارة وجودة الأرباح على خطر التعثر المالى للشركات: أدلة عملیة من بیئة الأعمال المصریة

Abstract

Purpose: Measuring the Impact of the Relationship between Characteristics of the Board of Directors and Earnings Quality on Financial Distress Risk for companies listed in the Egyptian Stock Exchange. Design and Methodology:The study adopted the content analysis approach to analyze the content of the financial statements for a sample of 129 non-financial joint stock companies listed in the Egyptian Stock Exchange during the period from ( 2016) to ( 2018), with a total of (387) observations in order to test the study's hypotheses that reflect the impact of the relationship between the characteristics of the board of directors represented in (Board independence, CEO duality, Diversity of the board, Board size) and earnings quality indicators (Earnings Persistence) and (Earning Predictability ) in order to predict the financial distress risk of companies listed in the Egyptian Stock Exchange using (Emerging Markets Score (EMS)) model.Altman & Hotchkiss developed the (Altman Z-Score) model to be suitable for emerging markets and have fairly accurate indicators in predicting the financial distress risk of companies in developing countries, including the Egyptian business environment.The current study developed 4 models to achieve the purpose of the study: The first one measures the impact of the characteristics of the board of directors on earnings quality, whileThe second model measures the impact of the characteristics of the board of directors on financial distress risk, The third one measures the impact of earnings quality on the financial distress risk.Finally, the fourth model measures the interactive impact of the relationship Between the characteristics of the board of directors and the earnings quality on the of financial distress risk. Conclusions and Recommendations: The results of the current study indicated that the characteristics of the board of directors have a significant positive effect on earnings quality of the study sample , Moreover , (The independence of the board of directors, the size ‫النجار‬ ‫أمني‬ ‫حممد‬ ‫د/سامح‬ ، ‫ماهر‬ ‫حممد‬ ‫مروة‬ ‫د/‬ ‫بسيوىن‬ ‫م‬ ‫خصائص‬ ‫بين‬ ‫العالقة‬ ‫أثر‬ ‫األرب‬ ‫وجودة‬ ‫اإلدارة‬ ‫جلس‬ ‫اح‬ ..... 262of the board of directors, and the diversity of the board of directors) have a positive significant relation with both the predictability and persistence of earnings, while, the duality of the CEO has a negative significant relation with both predictability and persistence of earnings. Also, the characteristics of the board of directors (the independence of the board of directors, the size of the board of directors, and the diversity of the board of directors) have a negative significant effect on financial distress risk, While the duality of the CEO has a positive significant relation with financial distress risk, also, the study presented a negative significant effect of earnings quality through earnings persistence and earnings predictability on financial distress risk.Finally, the study found a negative and significant effect of the relationship between the chara...