Noha El Berry
The effect of ownership structure and board of directors attributes on accounting conservatism: an empirical study on firms listed in the Egyptian stock exchange
The Effect of Ownership structure and Board of Directors' attributes on Accounting Conservatism of Firms in Egypt Noha Elberry ABSTRACT Over the past several years after various corporate scandals and failures had taken place there has been a renewed interest in the areas of Corporate Governance and Accounting Conservatism, and how the first one affects the second, especially in emerging countries and so as a developing country, Egypt tend to lack research in aspects related to Corporate Governance and Accounting Conservatism, therefore studying these aspects would fulfill this research gap. The purpose of this study is to examine the effect of Ownership Structure and Board of Directors Attributes on Accounting Conservatism of firms in Egypt. In this research, OLS regression analysis is used to explore the relationship between Ownership structure and board characteristics, and firms' Accounting Conservatism of companies from the most active 50 Egyptian companies listed on the Egyptian Stock Exchange of the non-financial sector during the period 2006-2011. The results after removing the outliers revealed that Institutional ownership has a positive significant relationship with Conservatism, and board size has a significant negative relationship with Conservatism, while the rest of the Hypotheses indicate that the other variables remain to have an insignificant relationship with conservatism. The empirical results of this study provide support to corporate managers in increasing the awareness of corporate governance and therefore achieving a superior level of Conservatism for companies in emerging countries such as Egypt.