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377992

Determinants of the Readability of Board of Directors’ Report: An Applied Study on Firms Listed on the Egyptian Stock Exchange

Article

Last updated: 25 Dec 2024

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Tags

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Abstract

This study aims to examine the readability level of board of directors' reports for firms listed on the Egyptian stock exchange. Further, it also aims to investigate the effect of profitability, corporate risk, earnings management and firm size on the readability of the board of directors' reports. While controlling for firm age, audit quality, financial loss, board size, board independence, and CEO duality. The readability of board of directors' reports refers to the ability of stakeholders to comprehend firms' valuation-relevant information because of writing style. The study used the Lasbarhets index (LIX) to measure the readability of the board of directors' reports. The research sample consists of 33 non-financial firms listed in the Egyptian stock exchange from the period 2015 to 2022, resulting in a final sample of 264 firm-year observations. The study provided evidence that the readability of the board of directors' report ranges from difficult to very difficult to read. Profitability and firm size have a positive relationship with the readability of the board of directors' reports; earnings management has a negative relationship with the readability of the board of directors' reports. On the other hand, the study failed to provide any evidence for the existence of a relationship between corporate risk and the readability of the board of directors' reports.

DOI

10.21608/aljalexu.2024.377992

Keywords

Readability, Board of Directors’ Report, profitability, Corporate risk, Earn-ings management, Firm Size

Authors

First Name

Maha Mohamed

Last Name

Ramadan

MiddleName

-

Affiliation

Associate Professor of Accounting at Eslsca University in Egypt Alexandria University

Email

maha.ramadan@eslsca.edu.eg

City

القاهرة

Orcid

-

First Name

Elham Attia

Last Name

Oransa

MiddleName

-

Affiliation

Master of Science in Accounting at Arab Academy for Science, Technology, and Maritime

Email

elhamoransa@icloud.com

City

-

Orcid

-

Volume

8

Article Issue

3

Related Issue

50183

Issue Date

2024-09-01

Receive Date

2024-06-25

Publish Date

2024-09-03

Page Start

1

Page End

58

Print ISSN

2682-3144

Online ISSN

2735-4954

Link

https://aljalexu.journals.ekb.eg/article_377992.html

Detail API

https://aljalexu.journals.ekb.eg/service?article_code=377992

Order

14

Type

المقالة الأصلية

Type Code

1,054

Publication Type

Journal

Publication Title

مجلة الاسکندرية للبحوث المحاسبية

Publication Link

https://aljalexu.journals.ekb.eg/

MainTitle

Determinants of the Readability of Board of Directors’ Report: An Applied Study on Firms Listed on the Egyptian Stock Exchange

Details

Type

Article

Created At

25 Dec 2024