Papers by Ahmed Fouad Ahmed ElBayoumi
An experimental investigation of the impact of sustainable ERP systems implementation on sustainability performance
Journal of financial reporting & accounting, Apr 15, 2024

This case study illustrates the approach Egypt has taken to implementing international financial ... more This case study illustrates the approach Egypt has taken to implementing international financial reporting standards (IFRS). It provides an overview of the efforts the country has undertaken to strengthen its accounting, financial reporting and auditing standards over the last two decades. The current set of Egyptian accounting standards are based on IFRS, some of which have been adapted to take into account the specific situation of the country. These include: presentation of financial statements; property, plant and equipment; disclosure of financial instruments; and accounting rules and standards for financial leasing operations. The auditing standards of Egypt are based on international standards on auditing (ISAs). The study discusses the roles of various regulatory bodies-including the Capital Market Authority, the Central Bank and the Insurance Supervisory Authority-in the implementation and enforcement of accounting standards. It notes that the process of issuing Egyptian Accounting Standards, including translation into Arabic, is lengthy. As a result, there is a gap between the set of Egyptian Accounting Standards that are currently in effect and IFRS. The paper highlights the need for capacity-building in accounting and auditing to facilitate implementation of standards in those areas. The need for a system of continuing professional education in accordance with internationally recognized requirements is also highlighted.

Integrating S-ERP systems and lean manufacturing practices to improve sustainability performance: an institutional theory perspective
Journal of Accounting in Emerging Economies
PurposeThis paper aims to investigate the impact of integrating Sustainable Enterprise Resource P... more PurposeThis paper aims to investigate the impact of integrating Sustainable Enterprise Resource Planning (S-ERP) systems and lean manufacturing (LM) practices on sustainability performance, especially in Egypt as an emerging country.Design/methodology/approachThe authors carried out an experimental study with a sample of 144 professional accountants of MPA, MBA and DBA students at two of the top universities in Egypt.FindingsThe results provide significant evidence that the integration of S-ERP systems and LM practices implementation improve sustainability performance. However, there is no significant evidence that S-ERP adoption contributes to the success of LM practices implementation.Research limitations/implicationsBecause of the chosen research approach, this study is limited to use of a laboratory experiment design. Empirical evidence based on quasi experiments on a field setting would add value to the current literature.Practical implicationsFindings provide practical insight...

Corporate Internet Disclosure in the Arabian Gulf: An Empirical Examination of Determinants and Attributes
This paper investigates and reports on the extent and nature of corporate internet disclosure and... more This paper investigates and reports on the extent and nature of corporate internet disclosure and the determinants of internet financial disclosure (IFD) by companies listed in three Gulf Corporation Council (GCC) countries. This paper uses data from 207 listed companies in Muscat Securities Market (MSM), Dubai Financial Market (DFM), and Qatar Exchange (QE). Binary logistic regression analysis is used to examine the determinants of IFD. Kruskal-Wallis test is used to examine the differences in disclosure characteristics among the three countries. The results of this study reveal that firm size is the major factor influencing internet financial reporting in the GCC. The results reveal that the three countries differ significantly in all the disclosure attributes with the exception of the existence of email link. This paper extends the stream of research that confirms the widespread use of internet in disclosing financial information. The results are consistent with previous literatu...

Measuring Audit Firms’ Intellectual Capital as a Determinant of Audit Quality: A Suggested Model
The intellectual capital (IC) is a main source of competing advantage. Many studies developed mea... more The intellectual capital (IC) is a main source of competing advantage. Many studies developed measure(s) of IC of industrial and service firms. Few studies have tried to develop a reliable measure(s) of IC in audit firms. This study extends the current models to provide more insight into the role of IC in audit firms. The aim of this study is to develop a model to measure audit firms' IC. The suggested model can be used to explore the relation between the IC in audit firms and audit quality. The model combines the main components of IC (human capital, structural capital and relational capital). The suggested model provides a tool that may help to better manage the IC in audit firms. As this is a theoretical study, a number of hypotheses are presented for testing in the future. Keywords: intellectual capital, human capital, structural capital, relational capital, audit quality, audit firms.

Stock option fraud detection and an analysis for its reasons: Arabic Republic of Egypt case
International Journal of Economics and Accounting, 2013
This paper investigates how stock option turned from an incentive for good management to a tool o... more This paper investigates how stock option turned from an incentive for good management to a tool of management fraud. The objective of this paper is accomplished through studying the stock option phenomenon in the Arab Republic of Egypt (ARE). Stock option grants data are obtained from all firms that have stock option grants and listed in the Egyptian stock market. The empirical study covers the period from 2006 through 2009. Detecting stock option fraud and distinguishing between control and fraud firms was done through calculating the cumulative abnormal returns before and after stock option grants. Results of this research reveal that the incidence of stock option fraud is higher in unscheduled option grants compared to scheduled ones. These results strongly support that the reason of stock option fraud in ARE is dating games rather than news announcements manipulation.

IJEA, 2012
We examine whether the incremental usefulness of the other comprehensive income (OCI) items relat... more We examine whether the incremental usefulness of the other comprehensive income (OCI) items relative to net income changed or not after the issuance of the Egyptian Accounting Standard number 1 (post-EAS 1). We also seek to depict inferences concerning which component(s) of OCI is more useful to the Egyptian investor. For the non-financial firms in the post-EAS 1 period, the aggregated OCI has a significant usefulness in explaining the following period's cash flows. Regarding financial firms in the period before the issuance of the Egyptian Accounting Standard number 1 (pre-EAS 1) and non-financial firms in the post-EAS 1, it was observed that foreign currency adjustments has significant usefulness in explaining the following period' cash flows. Regarding the financial firms, foreign currency adjustments component is significantly useful in explaining stock returns. Marketable securities adjustments are significantly useful in explaining stock returns for the non-financial firms in the post-EAS 1 period.

The objective of this paper is to investigate which measure of accounting income (comprehensive i... more The objective of this paper is to investigate which measure of accounting income (comprehensive income, operating income, or net income) is more useful to equity investors in explaining future earnings, future cash flows, and stock returns. This study proposes that different measures of income are more useful for different uses. The research is undertaken within the Egyptian environment that allows considerable asset revaluations and holds the reporting of extraordinary items. Therefore, such environment provides a rich ground for testing the expected effects of reporting comprehensive income and its components on the Egyptian investors. The results do not support the superiority of comprehensive income measures in explaining the following period's net income compared to net income. None of the four tested measures of earnings is able to explain the following period's cash flows. Operating income is superior to the other three measures of income in explaining stock return.
Preparers of financial statements are in a position to influence the view of economic reality pre... more Preparers of financial statements are in a position to influence the view of economic reality presented in those statements to interested parties. The term 'macromanipulation' is used to describe the lobbying of preparers against regulators (accounting standards setters) to persuade them to produce regulation that is more favorable to the interests of preparers. The aime of this paper is to introduce a suggested tool that could be used to ascertain why some financial accounting standards turn out to the benefit of one of the stakeholders involved in the process of accounting standards setting. This paper utilizes the construct of power to reveal the influences from parties involved in the process of accounting standards setting. The comprehensive income reporting standard is used in this paper as an example of these types of standard that may involve 'macro-manipulation'.

With the movement of many international accounting firms into Egypt, and the growth of local audi... more With the movement of many international accounting firms into Egypt, and the growth of local audit firms, it is particularly interesting, and relevant for governmental legislators, to study how the providers of the audit service perceive the quality of what they do. In this sense, the purpose of this paper is to report the perceptions of professional auditors in Egypt concerning how they perceive the quality of the service they provide. The paper also analyzes differences between perceptions of the Big 4 audit firms and other local audit firms. Based on 28 semi-structured interviews, it was revealed that the interviewees generally believed that the audit quality is preserved high in the presence of four factors: (1) high ethical standards to guide and regulate the profession; (2) a well planned and conducted audit; (3) a more knowledgeable audit team; and (4) having a good relationship with the client management.

The Journal of Developing Areas, 2019
The accounting and auditing profession is affected by the environment in which it operates. That ... more The accounting and auditing profession is affected by the environment in which it operates. That environment includes a variety of accounting and non-accounting factors. The influential factors may provide a better understanding of present accounting practices, and its future improvement tendencies and, consequently, may lead to the growth and development of the accounting and auditing profession. The main objective of this paper is to identify and investigate the environmental factors that affect the origin, growth, development, and practice of the accounting and auditing profession in Egypt, as an emerging country. This paper explores a comprehensive set of these influential factors such as existing laws and regulations, religious and cultural values, economic and political conditions, financial markets, and privatization programs. The paper also analyzes these factors to perceive their impact on the accounting and auditing profession in Egypt. These factors do vary from one country to another. Notably, there are several reasons for choosing Egypt to investigate the relation between the accounting and auditing profession and its environment. One of these reasons is that Egypt is a country with an emerging economy that has numerous foreign investment prospects. Moreover, the business environment in Egypt encountered a radical change throughout recent years. The Egyptian setting has been dynamic and developing through various economic, financial, legal, cultural and political frameworks that, apparently, influenced the accounting and auditing profession. Therefore, this paper aims to provide a better understanding of the accounting and auditing profession and its environment in Egypt and other similar countries experiencing economic and political reform with promising investment opportunities. This study concludes that political, economic, institutional, legal and cultural factors contribute to the development of the accounting and auditing profession in Egypt. Moreover, privatization led to reforming Egypt's financial reporting regulations and setting the corporate governance policy framework. The conclusions of this study could be of interest to other countries, particularly developing countries that desire to improve the quality of their accounting and auditing profession.
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Papers by Ahmed Fouad Ahmed ElBayoumi