The Impact of Accounting Information Characteristics on Firm and Market liquidity during Crises Periods: Empirical Study
DOI:
https://doi.org/10.56830/IJAMS10202403Keywords:
Accounting information characteristics, Firm liquidity, Market liquidity, crises, EgyptAbstract
This study aims to explore the impact of accounting information characteristics on firm and market liquidity in Egypt during crises, covering significant events such as the Egyptian Revolution, Currency Floatation, COVID-19 Pandemic, and the Ukraine War.Utilizing data spanning 2010 to 2022, the research evaluates four proxies: The Beest index, Timeliness, Earnings Management, and Value relevance of accounting information. Through two models analyzing Firm and Market liquidity with a sample of 106 Egyptian companies. The study unveils varying evolutions of accounting information characteristics across crises, influencing liquidity dynamics differently. Enhanced accounting standards positively affect firm liquidity over time, with timely financial reporting crucial during economic turmoil, boosting both firm and market liquidity.The findings underscore the pivotal role of accounting information characteristics in bolstering investor confidence and trading activities, especially during turbulent market conditions. Emphasizing the importance of transparency, timeliness, and integrity in financial reporting, the study offers insights for regulators and market participants to foster stability and resilience in Egyptian financial markets during crises
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