Egyptian Business Research Articles

The Impact of Governance Mechanisms on Combating Corruption In Light of Digital Transformation (A Field Study on the Egyptian Business Environment)

The Impact of Governance Mechanisms on Combating Corruption In Light of Digital Transformation (A Field Study on the Egyptian Business Environment)

A comparison Study Between Cloud Enterprise Resource Planning and Edge Enterprise Resource Planning to Create Value for Egyptian Business Firms: Value-Based Approach

A comparison Study Between Cloud Enterprise Resource Planning and Edge Enterprise Resource Planning to Create Value for Egyptian Business Firms: Value-Based Approach

The moderating role of board gender diversity on the association between audit committee attributes and integrated reporting quality

PurposeThe main objective of the research is to examine the influence of audit committee attributes on the integrated reporting quality (IRQ) and to investigate whether this association is moderated by board gender diversity in the manufacturing and non-manufacturing sectors. The study specifically investigates the association between audit committee independence, meetings frequency, financial expertise, audit committee size, and integrated reporting quality.Design/methodology/approachThe data collection was from the financial statements and corporate governance reports of 54 Egyptian firms listed on the stock market [EGX100] for the period of 2018–2022. The study used pooled effect modelling and performed data analysis using the STATA software.FindingsFor the manufacturing sector, the results showed a significant impact of audit committee independence and meetings frequency on IRQ, while audit committee size and financial expertise showed insignificant association with IRQ. Board gender diversity moderates the association between audit committee meetings only and IRQ. In contrast, audit committee financial expertise and meetings frequency significantly impact IRQ, while audit committee independence and size showed an insignificant impact on IRQ in the non-manufacturing sector. Also, board gender diversity moderates the association between audit committee and IRQ. The findings highlight the significance of AC attributes and provide guidance to firms to strengthen their audit committees in order to provide high quality of integrated reports to increase investor trust in the Egyptian business environment as it is now mandatory by the government.Originality/valueThis research offers unique perspectives on the association between variables in Egypt. This study is one of the first investigations on the impact of audit committee attributes and board diversity on integrated reporting quality within the context of Egyptian listed companies. Comprehending the ways in which audit committee attributes impact the integrated reporting quality in the manufacturing and non-manufacturing sectors can enable organizations to devise focused approaches that comply to the unique operational, regulatory, and investor demands in each sector.

Governance Strategies for Egyptian Businesses in Economic Diplomacy

Governance Strategies for Egyptian Businesses in Economic Diplomacy

A study of big bath practices in the Egyptian capital market: an emphasis on CEO turnover and origin

Purpose This study aims to investigate how major big bath accounting practices and CEO turnover in Egypt relate to one another, as well as the first to use the CEO’s origin as a moderating factor. Design/methodology/approach This study uses 10-year longitudinal data from 2012 to 2021 and 290 firm-year observations from Egypt’s listed nonfinancial firms that witnessed CEO turnover to identify the significant big bath accounting practices in Egyptian businesses after the Egyptian revolution and the COVID-19 pandemic. Using fixed and random effect models, the authors investigate the impact of CEO turnover on company earnings during the first year of a newly appointed CEO as an indicator of big bath practices after controlling CEO gender, experience, firm size, leverage, return on assets, return on equity and industry. The hypotheses were investigated using static panel data. Findings The results show the presence of big bath practices in the Egyptian market. Furthermore, big bath accounting practices are positively correlated with CEO turnover. Moreover, the results indicate that big bath accounting practices are only endured when external CEOs are employed, rather than internal ones. Research limitations/implications The sample size and availability of data are the main research limitations. In addition, this study only examined CEO turnover and CEO origin as moderators in big bath accounting. Thus, future research may consider other CEO characteristics and political factors associated with big bath practices. Practical implications The findings from this study offer valuable insights to investors and regulators for effective decision-making and governance practices within the Egyptian capital market, while also contributing to a more informed approach to emerging markets on a global scale. Originality/value The findings contribute to the big-bath and CEO turnover and origin literature by showing a lower ceiling for earnings manipulation and using Egypt as a case study due to its unique institutional environment.

Does the Audit Going Concern Opinion Really Matter? The Case of Egypt.

The auditor’s going concern opinion (GCO) is an opinion given by an auditor about a firm’s financial health. This opinion serves as an early warning system for the financial distress of client’s firm. The current research aimed to study the impact of the auditor’s going concern opinion (GCO) on stock prices in the Egyptian business environment. On a sample of 132 firms listed on the Egyptian Stock Exchange for the period 2016-2022 with a total of 759 firm-year-observations. In addition to the possible effect of two moderating variables associated with the main independent variables. Which is the expectation of GCO and perceived audit quality (AQ). We added the independent and moderating variables to the modified Ohlsen regression model to test for the value relevance of the GCO, and the effects of the moderating variables on the mentioned above relation. We found no evidence of a significant impact of the auditor’s GCO on the stock prices of companies listed on the Egyptian Stock Exchange, regardless of whether this opinion is expected or not. On the other hand, for the effect of perceived audit quality, we found a significant negative effect of GCO on stock prices for companies being audited by big 4 audit firms, which could be interpreted because of the reputation effect for such firms. Keywords: Going Concern Opinion – Financial Health – Audit Quality – Egypt.

A Study of the Relationship between Social Media Marketing through Influencer Marketing and SMEs: Applied on the Egyptian Small and Medium Enterprises

This paper explores the multidimensional influence of social media marketing on Egypt’s Small and Medium Enterprises. This study adopts a mixed-methods approach, integrating surveys, interviews, and case studies to give a thorough analysis. The study begins by assessing the amount of social media marketing adoption among Egyptian SMEs and identifying the most regularly used platforms. It evaluates the frequency and characteristics of social media interactions among SMEs, including consumer engagement and collaborations. Furthermore, the study assesses the problems associated with resource limits, digital literacy, and cultural issues in incorporating social media into SME operations. In addition, the study explores the impact of content created by users and online reviews on brand impression and consumer loyalty. The study also examines whether having an active social media presence corresponds with increasing revenue, market share expansion, and globalization activities. It investigates the role of social media marketing in promoting SMEs’ access to finance and collaborations. In conclusion, this thesis contributes to the existing literature by conducting a comprehensive evaluation of the impact of social media marketing on small and medium-sized enterprises (SMEs) in Egypt. It highlights the immense potential of social media and identifies various challenges SMEs face. The research recommends how policymakers, business support organizations, and SME owners can leverage social media marketing to enhance competitiveness and sustainability in the Egyptian business environment. Keywords: Social Media Marketing – Marketing – SMEs – Egypt.

The Impact of Sustainability Reports on Improving the Accuracy of Financial Predictions in the Egyptian Business Environment: An Applied Study

The Impact of Sustainability Reports on Improving the Accuracy of Financial Predictions in the Egyptian Business Environment: An Applied Study

The Impact of Sustainability Reports on Improving the Accuracy of Financial Predictions in the Egyptian Business Environment: An Applied Study

The Impact of Sustainability Reports on Improving the Accuracy of Financial Predictions in the Egyptian Business Environment: An Applied Study

The Role of Digital Accounting in Improving the Quality of Financial Reporting Information and Its Impact on the Accuracy of Financial Analysts’ Predictions: A Field Study

The main objective of the research is to study the role of digital accounting in improving the quality of financial reporting information and its impact on the accuracy of financial analysts’ forecasts in the Egyptian business environment. This ultimately leads to enhancing the relevance, reliability, consistency, comparability, and understandability of the accounting information contained in financial reports, which positively affects the accuracy of financial analysts’ predictions. Consequently, it stimulates investment activities in the Egyptian stock market, increases trading volume, and contributes to the achievement of Egypt’s Vision 2030. The research was based on a field study, and data was collected through survey questionnaires. The research sample consisted of (85) individuals, including internal auditors and accountants working in companies listed on the Egyptian Stock Exchange. The study also provided several recommendations, the most important of which is the necessity of adopting digital accounting in companies as one of the requirements of the digital age and the digital economy, so that they can meet the requirements for digital transformation and the establishment of a digital Egypt. Companies should also focus on providing the necessary technologies to implement digital accounting. Keywords: Digital Accounting, Quality of Financial Reporting Information, Accuracy of Financial Analysts’ Forecasts

The Role of Dynamic Managerial Qualities in Building a Proactive Top Manager in the Fourth Industrial Revolution in Egyptian Business Firms An Agile Transformational Approach

The Role of Dynamic Managerial Qualities in Building a Proactive Top Manager in the Fourth Industrial Revolution in Egyptian Business Firms An Agile Transformational Approach

The Role of E-Learning in Enhancing the Egyptian Business and Universities Performance Post Covid -19 Pandemic

The Role of E-Learning in Enhancing the Egyptian Business and Universities Performance Post Covid -19 Pandemic

Board Characteristics' Influence on dividend payment policy: An empirical study in the Egyptian business environment

Board Characteristics' Influence on dividend payment policy: An empirical study in the Egyptian business environment

What Drives Business Cycles in Egypt? An Analysis of Coincident and Leading Indicators

Abstract The paper proposes a chronology for the Egyptian economy by detecting phases of expansions and recessions during the period (2002–2019). It examines the cyclical behavior of variables that are considered potentially useful in measuring or predicting aggregate economic activity. To do so, we combine the National Bureau of Economic Research (NBER) approach together with time series analysis techniques to select the variables best suitable to play the role of coincident and leading indicators. This methodology is found to be the most appropriate when there is no well-established reference chronology as a benchmark for the cyclical analysis, which is the case of Egypt. As a result, two composite indexes are constructed: 1) the composite index of coincident economic indicators (CEI), which can be considered an adequate measure for the Egyptian business cycle; 2) the composite index of leading economic indicators (LEI) that shows good performance in anticipating aggregate economic activity in Egypt. Moreover, the empirical results indicate that total employment, consumption, and investment move coincidently with the reference cycle, while exchange rate and interest rate variables lead the reference cycle and have strong predictive power for economic activity in Egypt.

Management Accounting Techniques in Egyptian Business Firms: Expected Outcomes Perspective

Management Accounting Techniques in Egyptian Business Firms: Expected Outcomes Perspective

Management Characteristics, Risk Disclosure Quality and Liquidity: A Practical Evidence from the Egyptian Business Environment

Management Characteristics, Risk Disclosure Quality and Liquidity: A Practical Evidence from the Egyptian Business Environment

The impact of the Covid-19 pandemic on teleworking and the logistics of work in Egypt

Purpose: The aim of this paper is to investigate the impact of the Covid-19 pandemic on the implementation of teleworking and other flexible work practices, and the logistics of work in Egypt. Design/Methodology / approach: A review of relevant literature and a survey were conducted. The survey data was collected from a purposive sample of women working in professional and managerial roles in Alexandria and Cairo. The data was collected online between March and May in 2021. The questionnaire was in English. A sample of 1089 employees participated in the study. Data was collected on the perceived impact of the Covid-19 pandemic on employing organizations implementation of teleworking, other flexible work practices and childcare provision. A range of demographic and employing organization data was collected. Paired comparison and T-test analysis were employed in this study. Findings: The survey results indicated that before Covid-19 implementation of flexible working policies, workplace childcare and childcare allowances was limited. However, Covid-19 is significant in explaining marked increases in the implementation of all the flexible working policies and across all organisational ownership types and size groupings, this is not the case for the policies on childcare where there has been little change to rates of affirmation of implementation. Ownership type and organisational size were also significant in explaining some of the variations in rates of perceived implementation both before and after the pandemic. Research implication/limitation: The study has limitations in terms of the sample being limited to women working in professional and managerial roles in Alexandria and Cairo, the results are therefore not generalisable. Nevertheless, it provides evidence of and confirmed the significant influence of Covid-19 on the incidence of teleworking and other flexible work practices in Egypt. Research is needed to investigate this impact amongst a wider population. Research should also establish employee and employer perceptions of success, satisfaction with the arrangements, the logistics of work in this new environment and plans for the future. Employers in Egypt had adopted very much the same responses to the pandemic as others in many parts of the world in that Teleworking, WFH and flexitime had all been used to enable continuity of business activity during the pandemic. Greater flexibility in working hours had also been implemented through greater provision of opportunities for reduced hours and part-time working, possibly to cope with reduced levels of activity, as an alternative to laying staff off and as a means of enabling staff to cope with new realities in terms of a blurring of boundaries between work and home life and the demands imposed by children and other family responsibilities. Practical Implication/limitation: What we have witnessed in Egypt as in many other countries is teleworking, WFH and flexibility as transformation in response to crisis, the test will be to see whether these new modes of working will endure once the pandemic is over and whether the lessons learnt are utilised to inform and cultivate the future of work. There are some obvious challenges here for the Egyptian business, both in terms of the logistics of ensuring appropriate technical and environmental infrastructure and equipment for employees, but also clearly in transforming management structures, systems, mind-sets and organisational cultures. Originality: There is little evidence of the extent of teleworking and other modes of flexible working and employer childcare provision in Egypt. The survey results reported here constitute important initial findings on the impact of the pandemic on employee perceptions of their employers’ implementation of flexible work and childcare policies, both before and after the Covid-19 pandemic and in organisations varying by ownership and size.

The Bakery Shop (TBS) takes the heat: crisis management, social media, and corporate reputation

Theoretical basis Businesses of all sizes are susceptible to unforeseen shocks, which could have severe adverse effects on its brand, its reputation and even its survival. This case draws on three main streams of academic business literature and bodies of knowledge that come into play under such circumstances: reputational risk, crisis management and social media. Research methodology The author used primary and secondary sources in the research and development of this case. An interview with one of the cofounders of The Bakery Shop (TBS) provided a primary first-hand account of the events leading to this crisis and the subsequent remedial actions taken. The author supplemented this research with information from TBS’s website, social media accounts and TBS-provided material. Case overview/synopsis In 2015, TBS, a growing Egyptian business specializing in premium baked goods, launched a new fusion dessert “The Croissant Om Ali.” Triggered by social media, the new product was an instant hit, resulting in orders that exceeded TBS’s initial projection. However, the business suffered a sudden turn of events when some consumers showed symptoms of food poisoning. Once again, social media came into play with an aggressive customer backlash toward TBS. Its cofounders devised an appropriate action plan to address the crisis and salvage TBS’s tarnished reputation. Complexity academic level This case is written primarily for an introductory business course for first-year students of business and other closely related disciplines. This case mainly addresses crisis management as a means of restoring corporate reputation. It also highlights the important role of social media in a crisis.

The reality of accounting for sustainable development in Iraqi commercial banks: An applied study on Iraqi commercial banks

The study sought to research the reality of accounting for sustainable development in the Iraqi banking sector. Work was done by preparing a questionnaire containing three axes to measure that reality. Some statistical methods were used to reach the desired results from this study, and one of the most important results of the study was the lack of A vision and a message that properly establishes the use of accounting methods for sustainable development in the Iraqi banking work, in addition to the absence of cadres and legislation establishing their use, and the absence of transparency regarding their use, with the presence of many obstacles that limit their application. As for the most important recommendations, the study called for developing a vision And a message to all Iraqi banking institutions in order to promote the use of accounting methods for sustainable development, prepare qualified cadres for this use and efficiently through training on their use, optimal use of resources and in a manner that achieves access to societal goals, the development of laws, regulations and instructions that establish this use and make it compulsory and not optional, Reducing corruption in all its forms while eliminating obstacles to implementation. References Abdel Hafez, Zainab Emam (2013), Measurement and Accounting Report on Sustainable Development Operations, The Scientific Journal of Research and Business Studies, Issue 3, p. 24-43, Faculty of Commerce and Business Administration, Helwan University, Egypt. Abdel-Rahim, Gamal Kamel (2015), Measuring the impact of applying the Egyptian corporate responsibility index for sustainable development in controlling financial performance: a field study on Egyptian companies listed in the stock exchange, PhD thesis, Faculty of Commerce, Cairo University, Egypt. Al-Ghamdi, Abdulaziz bin Saqr (2006), Human Resource Development and the Requirements of Sustainable Development, Naif University for Security Sciences, The Third Arab Forum for Education, Beirut, Lebanon. Al-Hiti, Nawzad Abdul Rahman (2009), sustainable development, general framework and applications, the United Arab Emirates as a model, Emirates Center for Strategic Studies and Research, Abu Dhabi, United Arab Emirates. Arcay .M.R and F(2005), Corporate characteristics governance rules and the extent of voluntary disclosure in Spain, A advances in Accounting, vol.21, pp:299-331. Ashkal, Ghazala Ahmed and Ali, Suad Ayesh (2020), The extent to which accounting for sustainable development can be adopted in the Libyan business environment: An applied study on the Ras Al-Anouf Oil and Gas Manufacturing Company, Bright Star Journal for Scientific Research, No. 1, pp. 216-236. Badr, Essam Ali (2013), a proposed model for accounting disclosure for the sustainable development of an Egyptian business, a field study, The Scientific Journal of Research and Business Studies, Volume 27, Issue 4, (215-232) Faculty of Commerce and Business Administration, Helwan University, Egypt. Ghallab, Fatih (2011), The evolution of the audit function in the field of corporate governance to embody the principles and standards of sustainable development: A case study of some industrial enterprises, Master’s thesis, Faculty of Economics, Commercial Sciences and Facilitation Sciences, Farhat Abbas University, Setif, Algeria. Ghallab, Fatih (2016), a proposed accounting framework for the application of the accounting system for sustainable development in economic institutions, PhD thesis, Faculty of Economics, Commercial and Facilitation Sciences, Setif, Algeria. Ghoneim, Othman Muhammad and Abu Zant, Magda (2010), sustainable development, its philosophy, planning methods and measuring tools, Safaa Publishing and Distribution House, first edition, Amman, Jordan. Giacomo D, Alisa, (2007), Dimensions of sustainable development: a proposal of systematization of sustainable approaches, Italy. Hossain, M. Islam, K. and Andrew, J. (October, 2006). "Corporate social and environmental disclosure in developing countries: evidence from Bangladesh.in Proceedings", of the Asian Pacific Conference on International Accounting. Hawaii. International Ffederation of Accountants (2006), Why sustainability countsfor professional Accountants in Business , professional, Accountants in Business committee, information paper. Medhat Abu El-Nasr and Yasmine Medhat Mohamed (2017), Sustainable development / its concept / dimensions / its indicators, The Arab Group for Training and Publishing, first edition, Egyptian Book House, Cairo, Egypt. Schaltegger, Stefan and Burritt Roger l.(2010), Sustainability accounting for companies, catchphrase or decision support for business leaders , Journal of world Business, vol.45, pp375-384. Schermerhorn, john, R.(2002), Management, 7th ed john wiley and sons Inc. New york. Sharif, Omar (2008), Solar Energy and Environmental Protection as a Strategy for Achieving Sustainable Development, Fifth National Research on Environmental Economy and its Impact on Sustainable Development, Faculty of Economics and Facilitation Sciences, Skikda University, Algeria

Pre-University Education in Egypt at the Turn of the Second and Third Decades of the XXI Century

The author analyzes the system of pre-university education in Egypt, which the Constitution of 2014 undertakes to raise to the «international level». To this end, the government has been reforming it since 2017, which is partly financed by a loan from the World Bank. The main directions of the reform include improving preschool education, improving the qualifications of teachers, changing the system of assessing students’ knowledge and strengthening the technical base of schools and colleges. Despite the first successes of pre-university education reform, it is still expanding mainly extensively, without significantly improving the quality of education of Egyptian students. The reason for this lies in the significant lack of public investment, which the government is trying to compensate by attracting private business, both national and international, to this area. However, this leads to increased inequality in access to education. In addition, even taking into account private investments, the amount of funding for pre-university education is still far from the 4% of GDP provided for by the Constitution. The main problems of pre-university education continue to be the unsatisfactory average level of qualification of Egyptian teachers, mainly due to their low wages, a large number of pupils in classes, as well as the weak material and technical base of schools and colleges. There are also significant differences in the territorial development of pre-university education in Egypt, as well as between its various stages and directions. Egyptian business continues to experience a shortage of qualified graduates of the secondary vocational education system, despite certain successes achieved in its development in recent years.