The Effect of Digitalization on Improving the Timeliness of Financial Reporting: Evidence from Egyptian Listed Companies | ||||
| المجلة العلمية لکلية التجارة (أسيوط) | ||||
| Article 9, Volume 43, Issue 79 - Serial Number 3, December 2023, Page 315-343 PDF (614.09 K) | ||||
| Document Type: المقالة الأصلية | ||||
| DOI: 10.21608/sjcf.2023.209750.1047 | ||||
 View on SCiNiTO | ||||
| Author | ||||
Sameh Abdelsalam Mustafa 
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| قسم المحاسبة، كلية التجارة، جامعة أسيوط | ||||
| Abstract | ||||
| Purpose: The current wave of digitalization (SMACIT), from Online Social Networks (OSNs), Mobile Telecommunication, Analytics and Cloud Computing to the Internet of Things, has led to a rethink of how companies use technology and new business models to improve the quality of accounting information. This study empirically investigates the effect of the digitalization on improving the timeliness of reporting. Design/methodology/approach: The study uses a sample of 189 companies listed on the Egyptian stock Exchange to assess the effect of key enablers of digitalization on the timeliness of financial reporting. Simple and multiple regression analysis are used to test hypotheses. Three of the new digital solutions, namely social networks, websites, and digital platforms, are used as independent variables in this study. Findings: The results revealed that the listed Egyptian companies take an average of 40 to 85 days to release their financial reports. The banking, and industrial goods, services and automobiles sectors performed better compared to other sectors, and the service sectors performed better than the industrial sectors with regard to the timing of financial reports. The results of the regression analysis indicate that there is a significant negative relationship between the timing of financial reports, the use of online social networks, websites, and digital platforms by listed companies. The study concluded that increased digitalization improves the timeliness of financial reporting, which meaning that the greater the digitalization, the shorter the financial reporting time. Research limitations: This study has some limitations. First, the digitalization metrics used in this study are preliminary and need to be developed. Second, the digitalization metrics do not taken into account the age of the company, experience, and the effectiveness and manner in which digital technologies are used. Originality/value: This research provides more insights to understand the effect of the new digital solutions on the timing of financial reporting. The results presented in this study are expected to rethink the effectiveness of the governance mechanism in light of digital transformation practices in Egypt. | ||||
| Keywords | ||||
| Digitalization; New digital solutions; Online Social Networks; Websites; Digital platforms | ||||
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