The Moderating Influence of Ownership Structure on the Association between Financial Reporting Quality and Investment Efficiency: Evidence from Egypt | ||
| المجلة العلمية للدراسات التجارية والبيئية | ||
| Article 49, Volume 13, Issue 4, October 2022, Pages 224-249 PDF (654.62 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/jces.2022.285182 | ||
| Author | ||
| Kholoud Abdel Karim Mahmoud* | ||
| Assistant Professor Accounting Department, Faculty of Commerce, Cairo University Kholoud_abdelkarim@foc.cu.edu.eg | ||
| Abstract | ||
| The key purpose of this study is to investigate the effect of Financial Reporting Quality (FRQ) on Investment Efficiency (IE) in Egypt. In addition, this research studies the moderating effect of various structures of ownership (concentration and managerial ownership) on the association between FRQ and IE. The structure of ownership is an essential internal corporate governance mechanism that could solve agency issues and reduce information asymmetry Chen (2013) and Fama and Jensen (1983). This study used a sample of 53 companies that were registered on the Egyptian stock exchange )EGX( market between 2015 and 2018. According to the findings, FRQ and IE have a substantial positive association. Second, organizations with significant managerial ownership show a stronger correlation between FRQ and IE. Finally, the link between FRQ and IE is not being moderated by concentrated ownership. The study's findings are consistent with the idea that managerial ownership could decrease agency problems and information asymmetry. Therefore, providing managers with stock ownership as compensation will be quite advantageous. | ||
| Keywords | ||
| Financial Reporting Quality; Investment Efficiency; Managerial Ownership; Concentrated ownership | ||
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