The Impact of Transitory Losses on Firms’ Corporate Governance Structure | ||
| المجلة العلمية للدراسات التجارية والبيئية | ||
| Article 49, Volume 12, Issue 1, January 2021, Pages 275-298 PDF (636.35 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/jces.2021.168714 | ||
| Author | ||
| Shereen Mohamed Abd El-Fattah Mahmoud* | ||
| Abstract | ||
| This research investigates the impact of one major form of underperformance in companies, the reporting of a transitory losses, on post-changes occurring in the corporate governance structure (CG) of these companies. The research uses a combined sample of 52 firms listed in the Egyptian Stock Exchange (EGX) during the period from 2014 to 2017. A loss sample of 26 firms is matched to a profit sample of 26 firms based on industry and firm size to isolate the loss situation and control for industry characteristics. Using confirmatory factor analysis and difference-in-differences (DID) analysis, the findings indicate that there is a significant impact of the reporting of a transitory loss on changes occurring in the corporate governance structure of loss firms in the period following the loss, but these changes are not significantly different from those made by the profit firms. | ||
| Keywords | ||
| Transitory Loss; Corporate Governance Structure; Board Composition; Ownership Structure | ||
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