THE ACCOUNTING DISCLOSURE IN DEVELOPING COUNTRIES: A COMPARATIVE STUDY OF LIBYAN & EGYPTIAN CONSTRUCTION COMPANIES

Information is the lifeblood of capital markets, and the efficiency of any market depends on the availability of accounting information to all investors at low costs. These disclosures have a great impact on the behaviour of investors with respect to the buying and selling of stocks in the financial markets. This research sets out to examine the level of disclosure in two developing countries, Libya and Egypt, both of which form part of the Arab world. These countries have many similarities but one important difference in that a stock market exists in Egypt. The difference in disclosure requirement was analysed using information disclosed in the annual reports of sample companies from two countries. It reveals that the level of disclosure of Libyan companies is at a low level compared to Egyptian companies. The establishing of domestic standards or complying with the international accounting standards will help Libyan companies to make the disclosures more effectively