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The effect of accounting disclosure quality and information asymmetry on the stock market activity ? an applied study on listed companies in the Egyptian stock market


  • Hesham Abdelghany

    () (alexandria university)


The research investigated the impact of accounting disclosure quality and information asymmetry on the Egyptian stock market activity. The research provided some insights for the efficiency of the Egyptian stock market and how accounting disclosures play an active role in certain circumstances leading to reducing the informational gap between investors and management and enhancing the responsiveness to information in terms of increase in stock prices, transactions volume and transactions value. Data has been collected for companies listed in the Egyptian stock market for the period from 2002 through 2014. Research sample comprised of 60 companies which results in 780 observations for the research. I found that there are significant association between both accounting disclosure quality and information asymmetry and the stock market activity.

Suggested Citation

  • Hesham Abdelghany, 2015. "The effect of accounting disclosure quality and information asymmetry on the stock market activity ? an applied study on listed companies in the Egyptian stock market," Proceedings of International Academic Conferences 2704127, International Institute of Social and Economic Sciences.
  • Handle: RePEc:sek:iacpro:2704127

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    References listed on IDEAS

    1. Ramos, Sofia B. & von Thadden, Ernst-Ludwig, 2008. "Stock exchange competition in a simple model of capital market equilibrium," Journal of Financial Markets, Elsevier, vol. 11(3), pages 284-307, August.
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    3. Bogdan DIMA & Ioan CUZMAN & Stefana DIMA (CRISTEA) & Otilia SARAMAT, 2013. "Effects of Financial and Non-Financial Information Disclosure on Prices’ Mechanisms for Emergent Markets: The Case of Bucharest Stock Exchange," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 12(1), pages 76-100, March.
    4. Shingo Goto & Masahiro Watanabe & Yan Xu, 2009. "Strategic Disclosure and Stock Returns: Theory and Evidence from US Cross-Listing," Review of Financial Studies, Society for Financial Studies, vol. 22(4), pages 1585-1620, April.
    5. Max Leandro Ferreira Tavares & Claudio Henrique da Silveira Barbedo & Gustavo Silva Araujo, 2014. "The Influence of information asymmetry on the return and volatility of value and growth stock portfolios," Brazilian Business Review, Fucape Business School, vol. 11(1), pages 111-129, January.
    6. Allen Ferrell, 2007. "Mandatory Disclosure and Stock Returns: Evidence from the Over-the-Counter Market," The Journal of Legal Studies, University of Chicago Press, vol. 36(2), pages 213-251, June.
    7. Alex Frino & Riccardo Palumbo & Francesco Capalbo & Dionigi Gerace & Vito Mollica, 2013. "Information Disclosure and Stock Liquidity: Evidence from Borsa Italiana," Abacus, Accounting Foundation, University of Sydney, vol. 49(4), pages 423-440, December.
    8. Mohammad Hamed Khan Mohammadi & Forough Heyrani & Nezam Golestani, 2013. "Impact of Conservatism on the Accounting Information Quality and Decision Making of the Shareholders and the Firms Listed on the Tehran Stock Exchange," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(3), pages 186-197, July.
    9. Hwei Cheng Wang & Hsain-Jane Chang, 2008. "The Association Between Accounting Information Disclosure And Stock Price," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 2(2), pages 1-10.
    10. K. Stephen Haggard & Xiumin Martin & Raynolde Pereira, 2008. "Does Voluntary Disclosure Improve Stock Price Informativeness?," Financial Management, Financial Management Association International, vol. 37(4), pages 747-768, December.
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    accounting disclosure quality;

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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