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

The weekly performance of IBM stock presented a contestant growth. One highlight of the falling of stock price in the 6th week in the investment period was when IBM presented the 3rd quarter financial report. The investors weren’t satisfied with the profit report which they expected to be better especially when other IT companies were doing well in the 3rd quarter. One mistake I made was that I didn’t follow closely to the financial report of the company; therefore, I missed the peak of the stock price. From this experience, I learned that financial reports and current news are important indicators of the stock price. By following closely to the current event and analyzing the financial report, investors can maximize the profit and also become more familiar to the market.

A great number of studies further identified several factors which particularly concerns market capitalisation, effective of stock market, etc., which explains the dynamic forces of stocks returns during the earnings announcements date in an organised manner. For instance, Atiase (1985) found that unexpected information pass on to the market by actual earnings report is inversely correlated to the company’s capitalisation. Grant (1990) observed that the market in which a company’s securities are traded often determined the behaviour of stocks return around the earnings announcements. Several other studies have aimed to organise for synchronise factors by using time series data such as intra-day and daily data. However, a fairly number of more robust studies has examined the information content of macroeconomics news releases. Elsharkawy and Garrod (1996), Pope and Inyangete (1992).

Each company must prepare financial statements to provide a comprehensive picture about its past performance and situation for the owners, the managers, the state and other stakeholders as well. In the case of enormous, international public limited companies like Ford and Microsoft these statements and data are public, so anybody can reach them through the internet. Moreover, we can also compute a lot of financial ratios based on these data. If we want to get an authentic frame about the firms, we have to know what these statement and ratios mean. In addition, it’s difficult for the companies that they want to give other picture about their financial status to

The most important thing to any company’s stakeholders is high-quality reporting of its financial statements. Investors, for instance, need to know the truth about a company in order to make an informed decision on whether to make private investment, buy stock or bonds. However, for stakeholders to get the truth about a company, they need to read and understand management’s discussion and analysis, the president’s letter, the notes, as well as the financial statements. Conversely, financial statements must be accompanied with disclosures to prevent them from misleading the stakeholders.

Baruch Lev and Feng Gu authors of “The End of Accounting and The Path Forward for Investors and Managers” indicate that over the past 110 years, the structure and content of financial reports has not changed, and that the role that these reports play in influencing the decisions of investors has greatly diminished. Lev and Gu make a case that non-transaction events that are not captured by the financial reports such as those disclosed through 8-k filings with the Securities and Exchange Commission (“SEC”) have a greater impact on stock prices, and thus more useful to investors. In addition, they suggest that one of reasons for the decline in usefulness of financial reports stems from the increase of estimates that has made its way into these reports (Lev and Gu 2016).

18. The normal time delay in Australia in providing the annual report of large companies to

Disclosure required by most regulatory authorities in developed economies may be classified into two categories: (a) disclosure related to operations in the securities markets; and (b) disclosure required by publicly held companies subject to the jurisdiction of the regulatory authority. Disclosure related to the direct operations of securities markets concerns the relationships of security brokers and representatives to the corporate entities issuing the securities traded. Disclosure required by publicly held corporations subject to the jurisdiction of the regulatory authority includes almost all of what is generally considered to be the public disclosure requirements for corporations. These disclosure requirements include information pertaining to, “(a) the relationship between the management of a corporation and its auditors; (b) the nature of relationships between a corporation and any of its shareholders; (c) institutional investment relationships; (d) proxy requirements; (e) board and committee composition; (f) compensation for the board of directors; and (g) management compensation” (Securities Exchange Act of 1934 Title 12). Shareholder rights and proxy disclosure requirements resulted from the belief that the management of a public corporation can effectively frustrate shareholders’ efforts to participate in the management of

For example, it was found an increase in market liquidity and a decrease in cost of capital (Daske et al, 2008; Leuz and Verrecchia, 2000); a larger trading volume (Drake et al, 2010); positive economic consequences in terms of corporate debt financing, especially for bond financing (Florou and Kosi, 2009); and growing investment flows from foreign mutual funds (Covrig et al, 2007). From another perspective summarizing the strand of research is they are overall in the investors’ shoes. They focused on investigating whether investors benefit more from IFRS adoption than its associated costs (Armstrong et al 2010; Lee, Walker and Zeng 2013). For example, arguably, the increased market liquidity is a benefit accruing to IFRS adoption while the impaired investors’ confidence on the reliability of financial information is an associated cost. These studies generate mixed evidence regarding the effect of IFRS adoption and the vast majority of them give conclusions premised on specific assumptions or circumstances such as the existence of financial reporting incentives and inherent strong enforcement (Christensen, et al 2008) as well as well-established investor protection mechanism (Leuz and Wysocki, 2008; Bruggemann et al, 2010). Despite

In the article “Textual risk disclosures and investors risk perceptions” by Kravet and Mushu (2011), the authors provided evidence that textual risk disclosures in annual reports corresponds with a similar amount of increase or decrease in the stock price and increased volatility in the volumes traded in the market, these disclosures are a mean for the managers to send signals about future firm performance to the investors who can then use the information to make a rational decision. The authors research 4315 firms between the years 1994 and 2007 leading to a sample of 28,110 observations for their article. The authors test how the investors and analyst’s behavior changes during the two months before and after the filings of the 10 – K reports the authors collect their data from. The test is conducted by linking the various test variables such as changes in stock returns, changes in volume traded by linking them amongst other variables to changes in management's forecasts, changes in risk disclosures, changes in sales, changes in institutional

With the development of the stock markets and the huge grow in the volume of money traded in them, over the past 20 years a rising attention has been aimed at towards the importance of truthful and fair accounting. The real interest in how companies chase their financial reporting has developed in the wake of a multitude of large

It is incontestable that international financial reporting standards (IFRS) are in vogue and global conformity theoretically on the doorstep as about 100 countries implement standard financial regulations. The idea that uniform reporting standards have the same effect on financial reporting undervalues the contested ability to be flexible in financial reporting and introduces another level of debate on the issue of flexibility and uniformity. Apart from the fact that the merits of flexibility are downplayed to increase cross-sectional and inter-temporal comparison, prescribed reporting standards compliance is itself not enough basis to claim that financial reporting. The IFRS comprises of principle-based standards that have presents financial report manager with the opportunity to increase flexibility on their part and possible manipulation (Benston, 2006). Consequently, the fact brings another issue into question, for instance, the reliability and transparency of information produced under professional discretion and judgment of managers. This paper seeks to indicate that there are too many current financial reporting issues that are not yet conclusively included in the crusade for the adoption of uniform financial reporting standards on the notion that uniform standards improve the quality of financial reporting regarding comparability.

_____________________________ This paper was presented at the Institute of Chartered Accountants in England & Wales Information for Better Capital Markets Conference in London on December 20, 2005. I am grateful to Ryan LaFond, Karthik Ramanna, Sugata Roychowdhury and Joseph Weber for their comments. All remaining errors are mine.

Researchers such as Larcker and Tayan (2011) put a lot of emphasis on good corporate governance practices towards value relevance of accounting information. Several characteristics such as the board size (Coles et al. (2008); Hallock, 1997; Larcker, So, & Wang, 2010; Nguyen, 2009), board independence ( Forker, 1992; Cotter, Shivdasani, & Zenner, 1997; Lefwich et al., 1981; Fama and Jensen, 1983; Hwang & Kim, 2009), existence of audit

In this study, we focus on voluntary information disclosure by companies in their annual report. Barako et al (2006) defined voluntary disclosure as the discretionary release of financial and non-financial information through annual report exceeding the mandatory requirements. The disclosure score index is used to measure the extent of voluntary disclosure in annual report. This measurement basis is most commonly adopted by researchers in their study of voluntary

The aim of this paper is to determine the effects of stock prices following the announcement of audited financial reports of Slovenian and Croatian public interest entities. Our