Hany Kamel

Bio: Hany Kamel is an academic researcher from Qatar University. The author has contributed to research in topics: Earnings management & Audit committee. The author has an hindex of 7, co-authored 12 publications receiving 189 citations. Previous affiliations of Hany Kamel include Cairo University & Al Ain University of Science and Technology.

Assessing the perceptions of the quality of reported earnings in Egypt

Abstract: Purpose – The purpose of this paper is to assess respondents' perceptions of the quality of reported earnings in Egypt. To this end, three main issues are investigated: first, the potential incentives for engagement in earnings manipulation; second, the techniques most frequently used in manipulating earnings; and finally, the actions required to improve the quality of accounting information, including the reported earnings.Design/methodology/approach – A total of 16 semi‐structured interviews are conducted in order to uncover any undisclosed issues and to supplement the results provided by a questionnaire survey distributed among three groups of respondents, namely, accounting academics, external auditors, and financial managers.Findings – The results indicate that the main incentives for manipulating earnings in Egypt are to enhance the chances of obtaining a bank loan; to sustain last year's profit performance; to report profits and to avoid reporting losses; and to achieve high‐share valuation. The re...

Investigating the phenomenon of earnings management in the Egyptian stock market

Abstract: Purpose – The aim of this paper is to investigate the phenomenon of earnings management in Egypt, with particular reference to the pricing of IPOs. In addition, it aims to discuss its respondents' perceptions of the factors that are likely to weaken the effectiveness of internal corporate governance mechanisms in preventing the engagement in earnings management practices.Design/methodology/approach – To achieve the objectives of this paper, a multi‐method approach was adopted. This approach includes secondary data analysis and the collection of primary data from a number of semi‐structured interviews.Findings – The results indicate that Egyptian IPO managers have no incentive to affect the offering proceeds of their firms through exercising their discretion over the accounting accruals before going public. On the contrary, the results suggest that the amount of equity retained by issuers and the size of IPOs have a very significant impact on determining offering prices in the Egyptian stock market. The re...

The association between disclosure level and cost of capital in an emerging market: evidence from Egypt

Abstract: This paper aims to empirically investigate whether the cost of equity and debt capital is related to the extent of voluntary disclosure in the Egyptian stock market. Following the previous research, a disclosure index relevant to the Egyptian environment was developed and applied in OLS regressions, using information provided in the annual reports of 73 Egyptian listed companies. The results, however, indicate that there is no significant association between the level of voluntary disclosure, on the one hand, and the cost of equity capital and debt capital, on the other. This implies that Egyptian companies do not benefit from extensive voluntary disclosure in reducing the cost of equity or debt capital. Hence, the findings of this paper may be of interest to those academic researchers, practitioners and regulators who are interested in discovering the implications of extensive voluntary disclosure in the annual reports of an emerging market such as Egypt.

Regulation and Firm Perception, Eco-Innovation and Firm Performance

Abstract: Purpose - Recent OECD (2010, 2011) reports argue that eco-innovation is the key to realising growth. The purpose of this paper is to analyse the drivers of eco-innovation and to compare the impact of eco-innovation and non-eco-innovation on firm performance. The paper provides insights into the role government regulation can play in directing and stimulating eco-innovation. Design/methodology/approach - The approach utilised by this paper is empirical in nature. A modified innovation production function is used to assess the impact of regulation, consumer expectations and voluntary agreements on the performance of eco-innovation while a knowledge augmented production function is used to assess the impact of eco-innovation on firm performance. Findings - The findings suggest that regulation and customer perception can explain a firm‟s decision to engage in eco-innovation. Eco-innovation is also found to be more important than non-eco-innovation in determining firm performance. Research limitations/implications - Due to the limited availability of accounting data this paper uses turnover per worker as the measure of firm performance. As a result it is not possible to assess the impact of eco-innovation on firm costs. Social implications - The finding that regulation drives eco-innovation and that there is no trade-off between the optimal outcomes of lower levels of pollution for society and higher profit margins for businesses suggests that regulators and policy makers can stimulate growth and create a greener society. Originality/value - This paper provides an empirical analysis of the Porter and van der Linde‟s (1995) theory of environmental regulation and firm performance using novel real world data from over 2,000 Irish businesses.

The effects of corporate governance on financial performance and financial distress: evidence from Egypt

Abstract: Purpose – This paper aims to empirically examine the quality of corporate governance (CG) practices in Egyptian-listed companies and their impact on firm performance and financial distress in the context of an emerging market such as that of Egypt Design/methodology/approach – To assess the level of CG practices at a given firm, the current study constructs a corporate governance index (CGI) which consists of four dimensions: disclosure and transparency, composition of the board of directors, shareholders’ rights and investor relations and ownership and control structure Based on a sample of 86 non-financial firms listed on the Egyptian Exchange, the effects of CG on performance and financial distress are assessed Tobin’s Q is used to assess corporate performance At the same time, the Altman Z-score is used as a financial distress indicator, as it measures financial distress inversely The bigger the Z-score, the smaller the risk of financial distress Findings – The overall score of the CGI, on avera

Corporate performance, board structure, and their determinants in the banking industry

Abstract: The subprime crisis highlights how little we know about the governance of banks. This paper addresses a long-standing gap in the literature by analyzing board governance using a sample of banking firm data that spans forty years. We examine the relationship between board structure (size and composition) and bank performance, as well as some determinants of board structure. We document that mergers and acquisitions activity influences bank board composition, and we provide new evidence that organizational structure is significantly related to bank board size. We argue that these factors may explain why banking firms with larger boards do not underperform their peers in terms of Tobin's Q. Our findings suggest caution in applying regulations motivated by research on the governance of nonfinancial firms to banking firms. Since organizational structure is not specific to banks, our results suggest that it may be an important determinant for the boards of nonfinancial firms with complex organizational structures such as business groups.

The Endogeneity Bias in the Relation Between Cost-of-Debt Capital and Corporate Disclosure Policy

Abstract: The purpose of this paper is twofold.First, we provide a discussion of the problems associated with endogeneity in empirical accounting research.We emphasize problems arising when endogeneity is caused by (1) unobservable firm specific factors and (2) omitted variables and discuss the merits and drawbacks of using panel data techniques to address these causes.Second, we investigate the magnitude of endogeneity bias in Ordinary Least Squares regressions of cost-of-debt capital on firm disclosure policy.We document how including a set of variables which theory suggests to be related with both cost-of-debt capital and disclosure and using fixed effects estimation in a panel dataset reduces the endogeneity bias and produces consistent results.This analysis reveals that the effect of disclosure policy on cost-of-debt capital is 200% higher than what is found in Ordinary Least Squares estimation.Finally, we provide direct evidence that disclosure is impacted by unobservable firm-specific factors that are also correlated with cost-of-capital.