The effect of the degree of disclosure of other information accompanying the financial statements on the quality of financial reports. An applied study on companies listed on the stock exchange

Document Type : Original Article

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Accounting Department Faculty of Commerce Alexandria University Alexandria Egypt

Abstract

Recently, there has been a trend in companies to disclose a broader range of other information, other than that contained in the financial statements and the accompanying notes,This is in response to the increased demand on the part of users of financial statements for information that contributes to rationalizing their decisions.This is because the stakeholders rely, in large part, in their decisions on what companies disclose.There is no doubt that the lack of transparency and disclosure requirements makes the information in the financial statements misleading.This is negatively reflected in the decision-making process by stakeholders.This is what leads to the disclosure gap, which is one of the most important reasons for the asymmetry of information in the money market, which happens when the management of companies deliberately withholds certain information from investors to use them to achieve an extraordinary return from the shares they own, or the management of companies may withhold information that they believeDamages her competitive position (El-Dahrawy and Saraya, 2001).

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