The information gap in corporate annual reports:evidence from Egypt

This study explores whether an information gap exists for six typesof corporate disclosure in Egypt, where International Accounting Standards(IAS) apply but penalties for non-compliance are limited. It also investigateswhether low compliance with mandatory disclosure can be explained by lowlevels of demand for this type of information among local financial analysts.The results identify a significant gap between actual disclosure practices ofcompanies for various types of disclosure and market perceptions of thispractice. Our findings also suggest that low compliance with disclosurerequirements in Egypt is not driven by low levels of demand from localfinancial analysts, because these items of information are perceived as usefulfor investment decision making