The value relevance of forward looking disclosure : a content analysis of the annual reports of egyptian listed companies
Joint Authors
al-Dib, Ahmad Muhammad abd al-Aziz
Abu Musa, Ahmad Abd al-Salam
al-Mihi, Adil Abd al-Fattah
Source
Journal of Contemporary Commercial Studies
Issue
Vol. 7, Issue 11 (31 Jan. 2021), pp.253-294, 42 p.
Publisher
Kafrelsheikh University Faculty of Commercial
Publication Date
2021-01-31
Country of Publication
Egypt
No. of Pages
42
Main Subjects
Topics
- Researchers
- Financial statements
- Annual reports
- Economic aspects
- Financial disclosure
- Content analysis
- Market Risk
Abstract EN
Forward-looking financial disclosure (FLD) is intended to be value relevant to capture information about company's future performance.
However, a concern often arises over the boilerplate, storytelling, bias, and the auditing nature of FLD.
This study aims to examine the measure of FLD in Egyptian corporate annual reports using automated content analysis technique.
Second, is to identify the main FLD determinants.
Finally, it examines the impact of FLD on firm value.
The study uses a sample of Egyptian narrative statements in the annual reports over the period from 2008 to 2016.
The final sample comprised 360 observations of listed non-financial companies in Egypt and two empirical regression models are used.
FLD was measured by the number of sentences coded as containing both Egyptian forward looking and financial keywords.
Firm value for listed companies was measured by Tobin's Q.
The study finds company's size, leverage market risk, industry type, dividend policy, and competitive environment are the main firm-level determinants of FLD, while, auditor type is the main governance-level determinant of FLD in Egypt.
Further, findings also reveal an association between the level of FLD and firm value.
The results suggest that forward-looking financial information is value relevant about company performance and complements financial statements in Egypt.
The managers, investors, external auditors, regulators and researchers should pay more attention to economic consequences of FLD, and how to deliver signals and information more understandably and readably for stakeholders.
This research adds to the literature related to automated content analysis of narratives, and firm value for listed companies.
The results enrich agency, signalling, stakeholders, communication and dividend theories
American Psychological Association (APA)
Abu Musa, Ahmad Abd al-Salam& al-Mihi, Adil Abd al-Fattah& al-Dib, Ahmad Muhammad abd al-Aziz. 2021. The value relevance of forward looking disclosure : a content analysis of the annual reports of egyptian listed companies. Journal of Contemporary Commercial Studies،Vol. 7, no. 11, pp.253-294.
https://search.emarefa.net/detail/BIM-1251181
Modern Language Association (MLA)
Abu Musa, Ahmad Abd al-Salam…[et al.]. The value relevance of forward looking disclosure : a content analysis of the annual reports of egyptian listed companies. Journal of Contemporary Commercial Studies Vol. 7, no. 11 (Jan. 2021), pp.253-294.
https://search.emarefa.net/detail/BIM-1251181
American Medical Association (AMA)
Abu Musa, Ahmad Abd al-Salam& al-Mihi, Adil Abd al-Fattah& al-Dib, Ahmad Muhammad abd al-Aziz. The value relevance of forward looking disclosure : a content analysis of the annual reports of egyptian listed companies. Journal of Contemporary Commercial Studies. 2021. Vol. 7, no. 11, pp.253-294.
https://search.emarefa.net/detail/BIM-1251181
Data Type
Journal Articles
Language
English
Notes
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Record ID
BIM-1251181