Corporate governance, financial transparency and currency devaluation shocks: evidence from Egypt

What is it about?

In this paper, we provide the first empirical evidence on the impact of currency devaluation shock on the relationship between corporate governance and financial transparency in the Egyptian context as a leading emerging MENA market. It seems to suggest that regulatory shocks have a deteriorating impact on the quality of corporate governance and hence financial transparency among Egyptian listed companies. This result has a strong implication for the development of the financial transparency framework by policymakers and regulatory bodies through the enforcement of stricter monitoring of management behaviour and compliance with corporate governance best practices, accompanied by training programmes for boards and sub-committee members, to resume financial transparency, especially during shocks. This may be beneficial to policy makers and stock-market authorities considering policy changes that could affect their countries’ investment environments.

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