Abstract
The main objective of this study is to investigate the relationship between institutional ownership (IO) and the extent of forward-looking information (FLI) disclosure, by companies listed in the Egyptian Stock Exchange (ESE) for the year 2017. A sample comprising 34 companies was chosen from the most active 50 Egyptian listed companies in the ESE. To attain study objective, an index comprises 23 financial and non-financial items has been developed to measure disclosure level by sample companies. The descriptive analysis reveals a weak disclosure of future information by Egyptian listed companies ranging from 0.17 to 0.58, which indicates high variation in future disclosure among sampled companies. Moreover, the correlation analyses shows a positive strong significant correlation between the future looking disclosure level and institutional ownership, and also a positive moderately significant correlation between future looking disclosure and both audit firm and firm age. However, there is no significant correlation between future information disclosure and both firm size and industry type.
Highlights
Future disclosure has been one of the most recent accounting issues, especially in developing countries like Egypt
The main objective of this study is to investigate the relationship between institutional ownership (IO) and the extent of forward-looking information (FLI) disclosure, by companies listed in the Egyptian Stock Exchange (ESE) for the year 2017
The main objective of this study is to investigate the relationship between institutional ownership and the extent of forward-looking information disclosure, by companies listed on the Egyptian Stock Exchange (ESE) for the year 2017
Summary
Future disclosure has been one of the most recent accounting issues, especially in developing countries like Egypt. In these countries, capital markets development and efficiency rely heavily on decreasing information asymmetry between controlling shareholders and minority outsiders. Looking-forward information is sort of voluntary disclosure concerning future forecasts which enable users to evaluate company’s future performance (Menicucci, 2013). Egyptian firms may increase voluntary disclosure level; so as to support market value of their stocks and retrieve national and foreign trustworthy (Samaha and Abdallah, 2011)
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