Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


The Effect of Corporate Governance Attributes on Accounting Conservatism in Egypt

Author(s): Hanaa AbdelKader El-habashy

This study aims to investigate the corporate governance attributes that influence the level of accounting conservatism in Egyptian listed firms. A sample of the 40 most active non-financial companies collected in the period 2009-2014 was used for hypothesis testing. Panel regression models were used for data analysis. Givoly & Hayn (2000) index is used as conservatism measurement criteria. The corporate governance mechanisms used in this study covers board characteristics, ownership structure, and audit quality. The results of the research indicate that board independence and audit quality have a significant positive association with the accounting conservatism. Moreover, institutional ownership and large block shares have a significant negative association. Firms with higher Market to-Book value are likely to be more conservative in their reports. To the best of our knowledge, no study has yet utilized seven variables in measuring the attributes of corporate governance in non-financial companies in Egypt.