Proceedings of the 18th International Academic Conference, London

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

Abstract:

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.

Keywords: accounting disclosure quality

DOI: 10.20472/IAC.2015.018.001

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