Accounting Disclosure Tone and Conservative Debt Policy Empirical Study on the Egyptian Companies Listed in Stock Exchange | ||
| المجلة العلمية للدراسات والبحوث المالية والتجارية | ||
| Article 5, Volume 2, العدد الثاني - الجزء الأول - Serial Number 1, February 2021, Pages 155-190 PDF (908.53 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/cfdj.2021.146715 | ||
| Author | ||
| Asmaa ibrahim Abd el rehim | ||
| المعهد التکنولوجى العالى بالعاشر من رمضان | ||
| Abstract | ||
| The research aims to study the relation between accounting disclosure tone (Positive tone – Negative tone – Net tone) and conservative debt policy (the low-leverage puzzle). The study investigates hypotheses on a sample of 60 Egyptian firms listed in Stock Exchange in the period (2013-2019). Using content analysis and logistic regression to analyze the formulation of news found in financial reports and periodic disclosures published on the Egyptian Stock Exchange. The results indicate a negative and significant relation between positive disclosure tone and conservative debt policy, meaning that with an increase (decrease) in the disclosure tone, firms are less (more) conservative in debt policy. This result is consistent with (Malmendier et al., 2011). The results also indicate that there is a positive and significant relation between (Negative - net) disclosure tone and conservative debt policy. This result can be explained that managers may retain more cash for future investment than their rational counterparts and are reluctant to use external financing. This result is consistent with (Malmendier et al., 2011). | ||
| Keywords | ||
| Accounting Disclosure Tone; conservative debt policy - content analysis - Positive tone; Negative tone; Net tone | ||
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