Accounting Reporting in Banks: The Case in Egypt and the UAE Before and after the Financial Crisis

Journal of Accounting and Auditing: Research & Practice

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Afaf Mubarak

Faculty of Business Administration, Al Hosn University- Abu Dhabi-United Arab Emirates

Volume 2012 (2012), Article ID 454273, Journal of Accounting and Auditing: Research & Practice, 15 pages, DOI: 10.5171/2012.454273

Received date : ; Accepted date : ; Published date : 10 May 2012

Copyright © 2012 Afaf Mubarak. This is an open access article distributed under the Creative Commons Attribution License unported 3.0, which permits unrestricted use, distribution, and reproduction in any medium, provided that original work is properly cited.


Banks in many countries including those in Egypt and the United Arab Emirates (UAE) suffered losses —at various degrees- as a result of the world financial crisis (started in 2006 by the US credit crisis). This stimulated the researcher to raise a question: Could accounting reporting by banks lessen the losses if more and better transparent information had been issued before the crisis? Corporate governance was considered a relevant framework based on an  implicit assumption that: if stakeholders were better informed about the main policies and decisions undertaken in an adequate and timely manner, they may have to react to protect their interests and hence reduce losses. This study tests three hypotheses about disclosure of accounting information of banks and effects on quality of those information in Egypt and the UAE after the crisis. By analyzing data for years (2003-2005) as representative of pre-crisis and (2009-2011) as post-crisis findings show support for the research hypotheses. There is more disclosure about financial items, operations abroad, directors and their remuneration in both countries after the crisis than before and in the UAE more than in Egypt. It was also found a positive association between disclosure and quality of information in terms of the timeliness and credibility it covers. The differences between the two countries could be explained by bigger exposure to international market (financial and trade) and bank having more resources in the UAE compared to Egypt but not because of ownership concentration which had a weak influence on change in transparency and governance between the two countries.

Keywords: Reporting, corporate governance, Egypt, the UAE