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

This dissertation provides empirical study aimed at investigating and measuring whether Egyptian corporate social responsibility (CSR) firms behave differently from other firms in their financial reporting behavior in order to enhance their stock performance through delivering a more transparent and reliable financial information to investors. Testing the announcements of 2014 and 2015 2S and P/EGX ESG3 Index lists events reveals that such announcements have a significant impact on stock performance, measured by abnormal stock returns around announcement date. Structured equation modeling (SEM) has been applied in order to examine the direct and indirect relationship between CSR and firm{u2019}s stock performance through earnings management practices; discretionary accrual and real activities manipulation as mediator variables. The results of SEM on 130 company-year observation indicate that CSR ranking has a significant negative relationship with discretionary accruals and a significant positive relationship with abnormal discretionary expenses. Finally, the results provide contribution to the earlier studies that provide mixed results on the relationship between CSR and firm{u2019}s stock performance by demonstrating that abnormal discretionary expenses mediates this relationship

Issued also as CD