Title: The information gap in corporate annual reports: evidence from Egypt

Authors: Omaima A.G. Hassan; Gianluigi Giorgioni; Peter Romilly; David M. Power

Addresses: Department of Economics and Finance, School of Social Sciences, Brunel University, Uxbridge, UB8 3PH, UK ' The Management School, University of Liverpool, Chatham Street, L69 7ZH, Liverpool, UK ' Ecmetrika Consultancy & Research, Newport-on-Tay, Scotland, UK ' School of Accounting & Finance, University of Dundee, Dundee, DD1 4HN, UK

Abstract: This study explores whether an information gap exists for six types of corporate disclosure in Egypt, where International Accounting Standards (IAS) apply but penalties for non-compliance are limited. It also investigates whether low compliance with mandatory disclosure can be explained by low levels of demand for this type of information among local financial analysts. The results identify a significant gap between actual disclosure practices of companies for various types of disclosure and market perceptions of this practice. Our findings also suggest that low compliance with disclosure requirements in Egypt is not driven by low levels of demand from local financial analysts, because these items of information are perceived as useful for investment decision making.

Keywords: information gap; corporate disclosure; financial disclosure; financial reporting; emerging markets; Egypt; corporate annual reports; market perceptions; compliance levels.

DOI: 10.1504/AJAAF.2012.052136

African Journal of Accounting, Auditing and Finance, 2012 Vol.1 No.4, pp.338 - 358

Available online: 16 Feb 2013 *

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