Debt maturity structure, accounting conservatism, and their implications on Egyptian firms 'growth

Abstract EN

This paper aims to investigate the impact of accounting conservatism on the listed Egyptian firms' growth.

Moreover, it investigates the relation betweendebt maturity structure and accounting conservatismand their implications on firms' growth.

The primary sample of the study comprises 88 non-financial firms listed in the EGX-100 index per year for six years (2013-2018), while the final sample consisted of 422 company-year observations after excluding observations with missing or insufficient data.

Givoly and Hayn (2000) measure of accounting conservatism is applied.

This measure is a firm-specific measure and reflects the accounting accruals in the following period.

The findings showthat in emerging markets like Egypt, there is no significant relationship betweendebt maturity structure and accounting conservatism, suggesting that debt maturity structure is not a determinant of accounting conservatism within Egyptian firms.

The study also finds that accounting conservatism has a significant negative impact on firms' growth rate and debt maturity structure does not enhance this impact.

These results have important implications for policymakers, standard setters, and market participants in emerging economies.