Khaled Dahawy

The conflict between IAS disclosure requirements and the secretive culture in Egypt

Abstract Our study attempts to highlight the inherent conflict between IAS standards and cultural values in one developing nation in transition, Egypt. We draw on Hofstedes (1980) seminal work, along with its accounting adaptations ( Gray, 1988 ; Hamid, Craig & Clark, 1993 ; Saudagaran & Meek, 1997 ), to highlight the cultural conflicts that adoption of IAS standards generated. We draw on this analysis to posit areas where we anticipate non-compliance or selective implementation of the IAS standards. We posit that the imposition of foreign standards generated resistance and that the resistance will be reflected in selective implementation of IAS standards. We found, as expected, that while the companies officially adopted IAS standards, non-compliance with specific IAS requirements was the norm. We then conducted interviews with the CEOs and accounting officers of these companies to determine the justification for selective implementation (non-compliance) with IAS standards. Our analysis suggests that selective implementation, continues to present a significant barrier to the IASs objective of obtaining “harmonization” of international accounting standards.

An empirical analysis of corporate governance structures and voluntary corporate disclosure in volatile capital markets: the Egyptian experience

This paper examines the level and determinants (i.e. ownership structure, board composition and audit committee presence) of voluntary corporate disclosure in the annual reports of the largest 100 companies listed on the Egyptian stock exchange (EGX). Our results indicate that overall voluntary disclosure was low at just 13.43% with a large variation range. This score places Egypt at a lower level than other emerging capital markets (e.g. Singapore, Hong Kong and Malaysia). The variances of these results support the need for individual country level studies and comparative analysis. Multivariate results show audit committee presence as the most significant variable influencing voluntary disclosure. Also, companies with a higher ratio of independent non-executive directors have a higher extent of voluntary disclosure. It was also evidenced that voluntary disclosure increases with decreases in block-holder ownership. Results show that two other ownership aspects – managerial and government – are not related to voluntary disclosure. Finally, the analysis shows profitability and internationality significantly impact voluntary disclosure. On the other side, that number of shareholders, type of auditor, size, liquidity, leverage and industry type of the firm do not affect the extent of voluntary disclosure.

Factors Influencing Corporate Disclosure Transparency in the Active Share Trading Firms: An Explanatory study

Purpose – This study examines the factors influencing Corporate disclosure transparency as measured by the level of voluntary disclosure (VD) in the annual reports of the active share trading firms in Egypt. Design/methodology/approach – The design and research method are empirical using archival data to collect information on the dependent variable (VD) and independent variables (corporate governance characteristics and company characteristics). A transformed multiple ordinary least squares (OLS) regression model was used to test the association between the dependent variable of VD and the independent variables. Findings – The findings indicate that the extent of VD is affected by the highly secretive Egyptian culture. This implies that the introduction of a new corporate governance code has not improved information symmetry as the overall level of VD is very low at just 19.38%. In addition, several corporate governance and company characteristics variables were found significant in explaining levels of VD by the sample companies. Research limitations – The findings have generalizability limitations as the study focuses only on the actively traded companies operating in the Egyptian stock market. Practical implications – The results of this study should alarm the regulators and financial investors from the quality of financial information being provided in the Egyptian market. These results are more alarming since the investigated companies are the top 30 actively traded companies on the Egyptian Stock Exchange (EGX). It is logically expected that the status of disclosure would be lower in the other less actively traded companies on EGX. Originality/value – This study provides evidence regarding three variables, for the first time in Egypt, namely “ownership structure” and “number of independent directors on the board” and “existence of audit committees” as explanatory variables of the level of VD. This research study will stimulate further research in understanding the importance of the role of corporate governance in promoting more transparency in other emerging economies and the need to build models that include country level factors to explain the level of VD.

The Use of Information Technology in Teaching Accounting in Egypt: Case of Becker Professional Review

The use of information and communication technology has become an integral component and a vital tool in teaching accounting. Over the last few decades, the blend of using state-of-the-art technologies has improved the effectiveness and efficiency of the learning process. Respectively, some predict that physical campuses will decay and crumble in the near future with the continuous growth of borderless societies and the diffusion of extended enterprises leading to a hybrid model for knowledge delivery that extends beyond distance and time barriers. The main emphasis of this case is to study the deployment of technology in teaching accounting in Egypt, using the case of Becker Professional Review in providing trainees with the required training that enables them to pass exams and get professional certification using emerging information technology tools and techniques. The case demonstrates how information technology adaptation can provide a platform for knowledge dissemination and demonstrates a model that can be replicated in similar environments.

Using Blended Learning Techniques in Knowledge Dissemination: Lessons Learnt from the Case of The American University in Cairo

The aim of any teaching institute is to provide suitable environments to accelerate the learning process. The Experiential Learning Theory suggests that there is a relationship between the learning environments, learning techniques and suitable teaching techniques. Therefore, it is important to study these relationships to improve the learning process, which is reflected on the outcome gained from the recipients of the knowledge disseminated. Learning and teaching techniques are classified into two groups: active‐like (A‐like) techniques and passive‐like (P‐like) techniques. The objective of this paper is to examine the importance level of these techniques and its relative implications. The methodology used is based on an empirical research with the use of a survey questionnaire where students studying courses in the department of management at the American University in Cairo were asked to complete a survey questionnaire to indicate the importance level for each technique. Students’ ratings support hypothesis regarding the passive‐like techniques. However, this proves that cultural factors robustly affect teaching preferences.