Measuring accounting disclosure in a period of complex changes: the case of Egypt

Omneya H. Abdelsalam, Pauline Weetman

Research output: Contribution to journalArticle

Abstract

Significant changes in accounting disclosure are observed in periods of economic change such as those relating to emerging capital markets and programs of privatization. Measurement of the level of accounting disclosure should ideally be designed to capture the complexity of change in order to give insight and explanation to match the causes and consequences of change. This paper shows the added interpretive value in subdividing the disclosure checklist to reflect the requirements of national accounting regulations, the location of disclosure items in the annual report, and limitations on the availability of regulations in official translation to the local language. Defining targeted disclosure categories leads to significance testing of specific aspects of changes in accounting disclosure in the Egyptian capital market in the 1990s. Strong correlation of disclosure with the presence of majority government ownership of the company and the relative activity of share trading supports the applicability of political costs and capital need theories, respectively. The relation between International Accounting Standards (IASs) disclosure and the type of audit firm points to additional theoretical explanations, including relative familiarity with the legislation and compliance features identifiable with the emerging capital market. The approach described in this paper has the potential for enhancing understanding of the complexity of accounting change in other emerging capital markets and developing economies.
Original languageEnglish
Pages (from-to)75-104
Number of pages30
JournalAdvances in International Accounting
Volume20
DOIs
Publication statusPublished - 2007

Fingerprint

Accounting disclosure
Disclosure
Egypt
Emerging capital markets
Interpretive
Government ownership
Accounting change
Testing
Capital markets
Check list
Privatization
Political capital
Annual reports
Developing economies
Political costs
Economic change
Market economy
International accounting standards
Familiarity
Language

Bibliographical note

Incorporated into Advances in Accounting (0882-6110)

Keywords

  • accounting disclosure
  • emerging capital markets
  • programs of privatization
  • disclosure checklist
  • national accounting regulations
  • annual report
  • regulations
  • Egyptian capital market
  • majority government ownership
  • share trading supports
  • political costs
  • capital need theories
  • International Accounting Standards
  • disclosure
  • developing economies

Cite this

Abdelsalam, Omneya H. ; Weetman, Pauline. / Measuring accounting disclosure in a period of complex changes : the case of Egypt. In: Advances in International Accounting. 2007 ; Vol. 20. pp. 75-104.
@article{9cb7ec4740514bb9a5e01fd8eb10ba6e,
title = "Measuring accounting disclosure in a period of complex changes: the case of Egypt",
abstract = "Significant changes in accounting disclosure are observed in periods of economic change such as those relating to emerging capital markets and programs of privatization. Measurement of the level of accounting disclosure should ideally be designed to capture the complexity of change in order to give insight and explanation to match the causes and consequences of change. This paper shows the added interpretive value in subdividing the disclosure checklist to reflect the requirements of national accounting regulations, the location of disclosure items in the annual report, and limitations on the availability of regulations in official translation to the local language. Defining targeted disclosure categories leads to significance testing of specific aspects of changes in accounting disclosure in the Egyptian capital market in the 1990s. Strong correlation of disclosure with the presence of majority government ownership of the company and the relative activity of share trading supports the applicability of political costs and capital need theories, respectively. The relation between International Accounting Standards (IASs) disclosure and the type of audit firm points to additional theoretical explanations, including relative familiarity with the legislation and compliance features identifiable with the emerging capital market. The approach described in this paper has the potential for enhancing understanding of the complexity of accounting change in other emerging capital markets and developing economies.",
keywords = "accounting disclosure, emerging capital markets, programs of privatization, disclosure checklist, national accounting regulations, annual report, regulations, Egyptian capital market, majority government ownership, share trading supports, political costs, capital need theories, International Accounting Standards, disclosure, developing economies",
author = "Abdelsalam, {Omneya H.} and Pauline Weetman",
note = "Incorporated into Advances in Accounting (0882-6110)",
year = "2007",
doi = "10.1016/S0897-3660(07)20004-2",
language = "English",
volume = "20",
pages = "75--104",
journal = "Advances in International Accounting",
issn = "0897-3660",
publisher = "JAI Press",

}

Measuring accounting disclosure in a period of complex changes : the case of Egypt. / Abdelsalam, Omneya H.; Weetman, Pauline.

In: Advances in International Accounting, Vol. 20, 2007, p. 75-104.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Measuring accounting disclosure in a period of complex changes

T2 - the case of Egypt

AU - Abdelsalam, Omneya H.

AU - Weetman, Pauline

N1 - Incorporated into Advances in Accounting (0882-6110)

PY - 2007

Y1 - 2007

N2 - Significant changes in accounting disclosure are observed in periods of economic change such as those relating to emerging capital markets and programs of privatization. Measurement of the level of accounting disclosure should ideally be designed to capture the complexity of change in order to give insight and explanation to match the causes and consequences of change. This paper shows the added interpretive value in subdividing the disclosure checklist to reflect the requirements of national accounting regulations, the location of disclosure items in the annual report, and limitations on the availability of regulations in official translation to the local language. Defining targeted disclosure categories leads to significance testing of specific aspects of changes in accounting disclosure in the Egyptian capital market in the 1990s. Strong correlation of disclosure with the presence of majority government ownership of the company and the relative activity of share trading supports the applicability of political costs and capital need theories, respectively. The relation between International Accounting Standards (IASs) disclosure and the type of audit firm points to additional theoretical explanations, including relative familiarity with the legislation and compliance features identifiable with the emerging capital market. The approach described in this paper has the potential for enhancing understanding of the complexity of accounting change in other emerging capital markets and developing economies.

AB - Significant changes in accounting disclosure are observed in periods of economic change such as those relating to emerging capital markets and programs of privatization. Measurement of the level of accounting disclosure should ideally be designed to capture the complexity of change in order to give insight and explanation to match the causes and consequences of change. This paper shows the added interpretive value in subdividing the disclosure checklist to reflect the requirements of national accounting regulations, the location of disclosure items in the annual report, and limitations on the availability of regulations in official translation to the local language. Defining targeted disclosure categories leads to significance testing of specific aspects of changes in accounting disclosure in the Egyptian capital market in the 1990s. Strong correlation of disclosure with the presence of majority government ownership of the company and the relative activity of share trading supports the applicability of political costs and capital need theories, respectively. The relation between International Accounting Standards (IASs) disclosure and the type of audit firm points to additional theoretical explanations, including relative familiarity with the legislation and compliance features identifiable with the emerging capital market. The approach described in this paper has the potential for enhancing understanding of the complexity of accounting change in other emerging capital markets and developing economies.

KW - accounting disclosure

KW - emerging capital markets

KW - programs of privatization

KW - disclosure checklist

KW - national accounting regulations

KW - annual report

KW - regulations

KW - Egyptian capital market

KW - majority government ownership

KW - share trading supports

KW - political costs

KW - capital need theories

KW - International Accounting Standards

KW - disclosure

KW - developing economies

U2 - 10.1016/S0897-3660(07)20004-2

DO - 10.1016/S0897-3660(07)20004-2

M3 - Article

VL - 20

SP - 75

EP - 104

JO - Advances in International Accounting

JF - Advances in International Accounting

SN - 0897-3660

ER -