Thesis (Ph.D.) - Cairo University - Faculty of Commerce - Department of Accounting

Using path analysis, this study investigated the direct and indirect effect of accounting consistency and accounting-based earnings quality proxy on market returns synchronicity of the Egyptian listed firms. The accounting-based earnings quality proxy was accruals quality represented in the standard deviation of the residual from working capital accruals. The data were drawn from a sample of 79 firms with 829 firm-year observation, for the period from 2007 to 2017. It was firstly examined how time-series accounting consistency achieves earnings quality. The results found a significant association between time series accounting consistency and lower variation of accruals residuals. Also, it was examined the direct impact of accruals quality on stock returns synchronicity. The findings indicated a significant association between lower variation of accruals residuals and higher stock returns synchronicity. Finally, it was examined the direct and indirect impact of accounting consistency on market returns synchronicity. It found evidence that the consistent use of accounting policies could achieve stock returns synchronicity only after achieving earnings quality. The findings indicated that earnings quality increases the effect of time-series accounting consistency on achieving stock returns synchronicity

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