Managerial Attributes and Accounting Conservatism in Small and Medium-Sized Enterprises | ||
| مجلة الدراسات التجارية المعاصرة | ||
| Volume 11, Issue 21, July 2025, Pages 1290-1320 PDF (952.59 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/csj.2025.420581.1659 | ||
| Authors | ||
| Yasmine M. Ragab* ; Salwa Mounir El-Kady; Mohamed A. Saleh | ||
| Faculty of Management, Modern University for Technology and Information, Cairo, Egypt | ||
| Abstract | ||
| Purpose- Motivated by these unclear relations between managerial attributes (e.g. managerial ability, managerial overconfidence and managerial myopia) and accounting conservatism, this study investigates how managerial attributes affect accounting conservatism in Egyptian SMEs. Design/methodology/approach- Using panel data from 198 firm-year observations of non-financial firms listed on Nilex between 2014 and 2022, the study employs several regression models to test the relationships. Findings- Contrary to prevailing literature, our findings indicate that managerial overconfidence and myopia are linked to more conservative reporting, while managerial ability tends to reduce it. These results are robust even after we used different model specifications and statistical methods. Practical implications- By extending existing literature beyond large-firm contexts, the study highlights how managerial attributes interacts with the institutional and financial realities of SMEs in emerging markets. The results provide useful insights for regulators, auditors, and investors assessing the reliability of SME financial reporting. Limitations- The research is constrained by its small sample size, concentration on publicly listed SMEs only, and reliance on indirect proxies for managerial characteristics and accounting conservatism, which may inadequately reflect underlying behaviors. These limitations hinder the generalization of results but offer opportunities for future research with more extensive datasets and alternative measures. Originality/value- This study, to our knowledge, is the first to simultaneously investigate managerial ability, overconfidence, and myopia in the Egyptian SMEs context. It extends the literature by elucidating the influence of managerial characteristics on conservative reporting in emerging markets. | ||
| Keywords | ||
| Managerial ability; Managerial overconfidence; Managerial myopia; Egypt; Conditional conservatism | ||
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