374395

The joint effect of the inflation rate and floatation of exchange rate on the accounting reporting complexity of non-financial firms listed on the Egyptian Stock Exchange

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Last updated: 04 Jan 2025

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Abstract

Financial reports are considered a tool to deliver accounting information to different parties, and to fulfill this information quality, financial reports should reflect the changes in the business environment, especially the macroeconomics one. So the objective of this research is to study and test the joint effect of the inflation rate and floatation of the exchange rate on the accounting reporting complexity of non-financial firms listed on the Egyptian Stock Exchange (EGX). Based on a sample of 600 firm-year observations during the period from 2016 to 2021. The researchers found empirical evidence that the joint effect of the inflation rate and floatation of the exchange rate has a negative but insignificant effect on the accounting reporting complexity. Concerning the control variables, we found that both (firm size and firm age) have a significant effect on the accounting reporting complexity, in addition to the insignificant effect of financial leverage on the accounting reporting complexity. In accordance with the empirical evidence of other analyses, the inflation rate has a significant effect on the accounting reporting complexity compared with the flotation of the exchange rate.  Also, we found evidence that the degree of the accounting reporting complexity differs by the difference of the industry sector.

DOI

10.21608/masf.2024.374395

Keywords

The inflation rate, The flotation of the exchange rate, Accounting reporting complexity

Authors

First Name

Hoda M. A

Last Name

Khalil

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Affiliation

Teaching assistant, Department of Accounting and Auditing, Faculty of Commerce, Alexandria University

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First Name

Abd Elwahab N

Last Name

Ali

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-

Affiliation

Professor, Department of Accounting and Auditing, Faculty of Commerce, Alexandria University

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Volume

16

Article Issue

3

Related Issue

49811

Issue Date

2024-09-01

Receive Date

2024-09-01

Publish Date

2024-09-01

Page Start

264

Page End

288

Print ISSN

2682-2113

Online ISSN

2682-2121

Link

https://masf.journals.ekb.eg/article_374395.html

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https://masf.journals.ekb.eg/service?article_code=374395

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12

Type

المقالة الأصلية

Type Code

863

Publication Type

Journal

Publication Title

المجلة العلمية للدراسات والبحوث المالية والإدارية‎

Publication Link

https://masf.journals.ekb.eg/

MainTitle

The joint effect of the inflation rate and floatation of exchange rate on the accounting reporting complexity of non-financial firms listed on the Egyptian Stock Exchange

Details

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Article

Created At

24 Dec 2024