Investors’ Perception On The Usefulness Of Management Report Disclosures. Evidence From An Emerging Market,

The study examines the usefulness of disclosures provided by Egyptian firms in the Management Report from the viewpoint of financial analysts and institutional investors. Institutional investors are surveyed to determine whether disclosures are meeting the needs of these financial statements’ users. Our main findings reveal that investors view mandatory and voluntary disclosures differently. Some voluntary disclosures are more useful than mandatory disclosures, which highlights a gap between the regulations and users’ information needs. Moreover, our findings show that respondents consider information related to ownership structure more important than information on risks and firms’ future performance. This study enriches the scientific debate on the usefulness of disclosures provided in the Management Report. It might also encourage other researchers to focus on investigating different types of information that may have a significant influence on the decision making process.