Earnings Mispricing and the Implementation of the Egyptian leasing Accounting Standard no. 49: Evidence from the Egyptian Capital Market | ||
| التجارة والتمويل | ||
| Volume 45, Issue 3, September 2025, Pages 1-28 PDF (1.48 M) | ||
| DOI: 10.21608/caf.2025.455690 | ||
| Authors | ||
| Amira Mohamed Samir1; Mohamed Elbannan2; Kholoud Abdel Karim3 | ||
| 1Science , Economics and Business Administration , May University, Egypt. | ||
| 2Faculty of Commerce, Cairo University, Egypt | ||
| 3Faculty of Commerce, Cairo University, Egypt | ||
| Abstract | ||
| The new lease accounting standard aims to investigate the issue of "off-balance sheet" financing resulting from operating leases, which has led to a lack of comparability in accruals across companies. Thus, the current research aims to address the effect of the implementation of the Egyptian Accounting Standard EAS (49) "Leases" on the mispricing of accruals. The study analyzed financial data from 2015 to 2023 of 59 companies listed on the Egyptian Stock Exchange using the difference-in-differences (DID) method. The data was obtained from the database of Thomson Reuters. The research sample included companies that adopted EAS (49) under the Egyptian Accounting Act. The findings indicate a significant positive effect of implementing EAS 49 on enhancing the quality of accruals by improving the information provided and subsequently reducing the mispricing of accruals. Furthermore, the findings reveal that the mispricing of accruals for companies that apply EAS 49 is lower than for companies that did not apply EAS 49 before mandatory adoption | ||
| Keywords | ||
| : Egyptian accounting standard (49); lease accounting; earnings; accruals; accrual mispricing; financial reporting | ||
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