Mohamed, Mostafa (2018) The Usefulness of Management Report On Investments Decision-Making In Egypt. [Tesi di dottorato]

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Item Type: Tesi di dottorato
Lingua: English
Title: The Usefulness of Management Report On Investments Decision-Making In Egypt
Creators:
CreatorsEmail
Mohamed, Mostafam_kayed@aun.edu.eg
Date: 2018
Number of Pages: 188
Institution: Università degli Studi di Napoli Federico II
Department: Economia, Management e Istituzioni
Dottorato: Management
Ciclo di dottorato: 31
Coordinatore del Corso di dottorato:
nomeemail
Mele, Cristinacristina.mele@unina.it
Tutor:
nomeemail
Allini, AlessandraUNSPECIFIED
Date: 2018
Number of Pages: 188
Uncontrolled Keywords: Disclosure, financial report, accounting
Settori scientifico-disciplinari del MIUR: Area 13 - Scienze economiche e statistiche > SECS-P/07 - Economia aziendale
Date Deposited: 16 Jan 2019 19:59
Last Modified: 30 Jun 2020 09:10
URI: http://www.fedoa.unina.it/id/eprint/12465

Abstract

The main aim of this study is to investigate the investors’ perceptions on the usefulness of disclosure provided in the Management Report in supporting their investment decisions, in the context of the 2014 new listing rules’ requirements in the Egyptian market. Thus, the users’ preferences were compared with the disclosure level in the MRs prepared by the listed companies in order to understand the level of coherence. Prior literature suggested that the financial crisis in 2008 has highlighted the inadequacy of the financial report in matching the users’ needs, while the narrative and commentary sections in MR can play an important role in maximizing the usefulness of accounting information. A mixed method approach was adopted in accordance with the following steps; In the first step, a survey was carried out by formulating questions that cover both mandatory and voluntary disclosures items in the MR. The targeted sample of respondents included all Egyptian banks and insurance companies (as institutional investors) along with the financial analysts who worked at the stockbrokerage firms. The collected responses consisted of thirty-six of respondents who were working in institutional investors firms, and seventy-eight of respondents who were working as financial analysts. The main findings of the survey revealed that some voluntary information was more useful than the mandatory information, which highlights a gap between the regulation requirements and the users’ information needs. Moreover, the respondents considered the information related to ownership structure to be more important than the information on risks and forward-looking performance, while the information related to board composition, audit committee, and CSR and environmental performance were regarded as less useful items in the MR. In the second step, we analysed 782 MRs that cover five years; two years under the old regulation and three years under the new regulation. This analysis was aimed to compare the users’ needs (as obtained in the previous model) with disclosure level provided in MRs. The findings showed that the general level of disclosure in MR has increased significantly after switching to the new regulation. However, the results indicated that the companies do not fully commit to requirements of the mandatory disclosure, as that listed companies do not disseminate that many of the ‘very useful’ information in MR, even if voluntarily. While the results clearly showed that level of mandatory disclosure has increased after applying the new regulation, the contrast was noticed in the voluntary disclosure. These contrasts in the findings refer to the initial role of regulatory bodies in matching the users’ needs through increasing the extent of mandatory disclosure to include much of the items seen to be very useful to them. Lastly, to provide further understanding, an additional regression model was carried out to examine the impact of firm-characteristics on disclosure level in MRs. The results showed that the presence of state ownership, cross-listing, and manufacturing activities have significant positive impacts on the disclosure provided in MR and its main sections and subsections. On the other hand, the age, size, profitability, and leverage had mixed findings throughout the different sections and subsections of MR.

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