Tone Disclosure and Financial Performance: Evidence from Egypt

Aly, Doaa A and Hussainey, Khaled and Elhalaby, Sherif (2017) Tone Disclosure and Financial Performance: Evidence from Egypt. Accounting Research Journal. ISSN 1030-9616 (In Press)

Full text not available from this repository.

Abstract

This paper examines to what extent financial performance (FP) represents one of the main determinants for tone disclosure (TD) in Egyptian annual reports. We also measure the bidirectional relationship between TD and FP. We use the manual content analysis to measure levels of TD in annual reports for a sample of 105 firms listed on the Egyptian stock market. Our sample covers a three-year period (2011–2013). Our descriptive analysis shows that Egyptian firms disclose more good news than bad news. Therefore, the net news disclosure, or net variances, between good/bad is positive. The empirical analysis shows a positive association between the narrative disclosure of good/bad news and FP based on return on assets (ROA). We also find a highly significant association between the auditor, profitability, leverage, firm growth and financial reporting of good/bad news information. Finally, the results of the ordinary least squares (OLS) regression show that the causality between the two endogenous variables runs from FP to TD . Thus, TD is determined by FP. We offer a novel contribution to disclosure studies by being the first study to examine tone disclosure in one of the developing countries.

Item Type: Article
Article Type: Article
Subjects: H Social Sciences > HG Finance > HG4001 Finance management. Business finance
Divisions: Schools and Research Institutes > Business School > Accounting and Finance
Research Priority Areas: Applied Business Research
Depositing User: Susan Turner
Date Deposited: 28 Jun 2017 12:59
Last Modified: 28 Jun 2017 12:59
URI: http://eprints.glos.ac.uk/id/eprint/4735

University Staff: Request a correction | Repository Editors: Update this record

University Of Gloucestershire

Bookmark and Share

Find Us On Social Media:

Social Media Icons Facebook Twitter Google+ YouTube Pinterest Linkedin

Other University Web Sites

University of Gloucestershire, The Park, Cheltenham, Gloucestershire, GL50 2RH. Telephone +44 (0)844 8010001.