e-journal

The usefulness of accounting information; evidence from the Egyptian market

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Purpose – The purpose of this paper is to ascertain financial analysts’ views regarding the
usefulness of a number of items of accounting information via a postal survey. This usefulness is
explored in the context of the Egyptian capital market. In addition the usefulness of different types of
information is researched, namely: historical vs forward-looking information; mandatory vs voluntary
information; and quantitative vs non-quantitative information.
Design/methodology/approach – This paper uses descriptive analysis to investigate the views of
a sample of 23 financial analysts regarding a number of items of accounting information. Analysts’
ratings are obtained via a postal questionnaire, most of which are collected by hand. Fifteen out of
23 responses are collected in person, which offer the opportunity to ask follow-up questions about the
information which the analysts see as valuable.
Findings – The findings indicate that different items of information are valued differently. In the
context of the Egyptian market, financial analysts tend to value: mandatory disclosure more than
voluntary disclosure; quantitative information more than non-quantitative information; and historic
information more than forward-looking information. This type of preference reflects the information
environment in Egypt, where mandatory disclosure is comprehensive and detailed based on
International Accounting Standards but where compliance is an issue. Voluntary disclosure is limited
and other sources of information are less common. Since mandatory information in Egypt tends to be
historic and quantitative in nature, this may explain the preference for these types of disclosures.
Research limitations/implications – The findings suggest that the importance of different types
of information may be affected by the degree of maturity of the market and how rich the information
environment is.
Practical implications – The results should be useful in informing companies and market
regulators about the types of information that financial analysts find useful for investment decision
making and the areas of disclosure where financial analysts suggest that improvement is needed.
Originality/value – This paper contributes to the literature by investigating the views of a sample
of financial analysts regarding the usefulness of accounting information and different types of
disclosure in the context of an emerging capital market where a dearth of studies exist.

Keywords Accounting information, Capital markets, Financial analysis, Egypt

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Informasi Detail

Judul Seri

Qualitative Research in Financial Markets

No. Panggil

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Penerbit

: Emerald Group., 2009

Deskripsi Fisik

Qualitative Research in Financial Markets Vol. 1 No. 3, 2009 pp. 125-141

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

AKUNTANSI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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