The Relationship between Managerial Overconfidence and Financial Reporting Lag- Governance Compliance as a Moderating Variable: an Applied Study on Companies Listed on the Egyptian Stock Exchange

The research aimed to study and test the effect of Managerial Overconfidence and the Financial Reporting Lag, and the extent of the impact of level of governance compliance as a variable modifying the relationship, by applying it to (68) companies as a sample of companies listed on the Egyptian Stock Exchange, during the period from 2019 to 2023. The study found that managerial overconfidence and the actions, behavior and orientations of the administration lead to delaying the issuance of financial reports in the Egyptian environment, although this effect differed according to the level of governance Compliance. Where The study found that there is a negative and significant effect of the degree of governance compliance as a moderating variable of the relationship, and that these results did not differ depending on the method of measuring the Financial Reporting Lag period (through sensitivity analysis), which indicates the possibility of using governance compliance as a mechanism to mitigate and limit the negative effects of excessive managerial overconfidence as a behavioral bias.
On the other hand, the results showed that the financial reporting lag in the Egyptian environment is positively affected by the size of the company, the loss, and the auditor’s opinion, while the negative effect of the size of the audit firm was found to be insignificant.
The results of the additional analysis showed, the financial reporting lag is also positively affected by the degree of financial leverage, and negatively affected by both governance compliance and the end of the financial year.