أثر حوكمة الشركات علي العلاقة بين الاستهلاك الترفي للمديرين و الملاءمة القيمية للمعلومات المحاسبية : دراسة امبريقية

Abstract EN

The purpose of this study is to investigate the relationship between the luxury spending of corporate managers and the value relevance of accounting information as well the moderating role of corporate governance.

Design/Method – Depending on pooled cross-sectional data representing 115 of publicly traded Egyptian firms from year 2010 to 2017 with total observation of 768, the present study tries to answer the following two questions; "is there a relationship between the luxury spending of corporate managers and the value relevance of accounting information”, and if there, "what is the impact of corporate governance on the relationship between the luxury spending of managers and the value relevance of accounting information? Findings – A significant association was found between the luxury spending of corporate managers and earnings per share and share prices which means “the value relevance of accounting information”.

This finding draws attention toward the importance of behavioral analysis of corporate managers' actions that are not value-adding to their firms since the negative impacts of these opportunistic actions do not stop at the impairment in firm value but also extent to the related party transactions' investment decisions because of their reliance on irrelevant financial information.

The results also stressed on the pivotal role of corporate governance on the relationship between the luxury spending of managers and the value relevance of accounting information as it contributes in reducing the opportunistic behavior of corporate managers.