The Effect of Analysts Cocerage on Accounting Conservatism An Empirical Study on the Egyptian listed companies"

Document Type : Original Article

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Accounting Department Faculty of Commerce zakazik University Zakazik Egypt

Abstract

Financial reports are considered as amian source of information for decision makers. Hence, the quality of these information is considered as the most important mecbanisms in capital markets. Consequently, accounting conservatism attracts attention of accounting literature as one chara teristics of information quality and one way, to reduce uncentainty of accounting practice therefore, the information asymmetry related to agency problem is decreased. Additionally, financial crises lead to investors confidence in financial disclosure is decreased. As aresult, some studies examined the determinants of accounting conservatism. Also, capital markets depend on financial analysts decisions and their coverage serve as monitoring mechanism  this research aims to examine the effect of analysts cocerage on accounting conservatism in Egyptain firms. The sample includes 540 observations during the period of 2009 – 2017. The results indicate that a significant effect of analysts coverage on accounting conservatism measured by C-score that developed by khan and watts (2009) that consider as adjustment to basu model (1997) the researcher suggests that the effectivencess of financial analysts monitoring leads to increase the likelihood in participating in choosing accounting practices. Due to their experience in following financial information on the level on industry and companies.

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