The Impact of Ownership Structure on the Quality of Financial Reporting: an Empirical Study on Firms Listed on the Egyptian Stock of Exchange.

EasyChair Preprint no. 5299

Abstract

This study aims at testing the effect of ownership structure on the quality of financial reporting using a sample of 50 companies listed on the Egyptian Stock Exchange for a period of three years, 2014 - 2016. The researcher relied on three types of ownership structure: concentration ownership, Management ownership, Institutional ownership. This study measures the magnitude of discretionary accruals as a proxy for earnings management using the cross-sectional modified Jones model (1991) as an inverse indicator of the quality of financial reporting. Using the multiple regression analysis, the results of the study showed a significant negative relationship between concentration ownership and discretionary accruals as an inverse indicator of the quality of financial reporting. Thus, there is a positive and significant relationship between concentration ownership and quality of financial reporting. In addition, there is a negative but insignificant relationship between Management ownership and discretionary accruals as an inverse indicator of the quality of financial reporting. Thus, it can be said that there is a positive but insignificant relationship between Management ownership and quality of financial reporting. In addition, there is a negative relationship between institutional ownership and discretionary accruals as an inverse indicator of the quality of financial reporting. Thus, there is a positive and significant relationship between institutional ownership and quality of financial reporting.

Keyphrases: 1- concentration- Management-, 2- Institutional ownership-, 2- quality of financial reporting.

@Booklet{EasyChair:5299,
  author = {Elsayed Mahmoud Elhennawy},
  title = {The Impact of Ownership Structure on the Quality of Financial Reporting: an Empirical Study on Firms Listed on the Egyptian Stock of Exchange.},
  howpublished = {EasyChair Preprint no. 5299},

  year = {EasyChair, 2021}}