Working Papers

Evaluating Corporate Governance Principles in Egypt

Publication Number: ECESWP82-A&E

April, 2003

Author : Samiha Fawzy

Type : Working Papers

This paper aims at evaluating corporate governance rules, laws and standards in Egypt. It starts with a discussion on the concept and importance of corporate governance, followed by a review of the various aspects of the capital market, including the structure of the stock market, the legal and supervisory framework, registration requirements, and the ownership structure. The paper then assesses Egypt’s corporate governance standards in accordance with the five OECD principles, namely, shareholders’ rights, equitable treatment of shareholders, stakeholders’ role in corporate governance, disclosure and transparency, and responsibilities of the board of directors. The analysis shows that corporate governance standards in Egypt have improved significantly, as reflected in the overall assessment of all five OECD principles. The degree of progress, however, varies from one principle to another. Finally, the paper points out that Egyptian companies are still far from properly implementing corporate governance principles.