Working Papers

Transparency and Disclosure in the Stock Market

Publication Number: ECESWP 175-A

November, 2013

Author : Ihab El-Disouki

Type : Working Papers

Transparency and disclosure in the stock market is an important prerequisite for the proper functioning of market forces. Absent or insufficient information may lead to responses that do not reflect the principles of economic rationality, thus causing economic inefficiency and threatening economic growth. In this context, the paper addresses the importance and role of transparency and disclosure in the Egyptian Stock Exchange, relying on an inductive and statistical approach in addition to questionnaires that elicit firm views regarding transparency and disclosure in the stock market. Transparency and disclosure are measured for a representative sample of Egyptian companies in accordance with relevant legislations; the sample involved all firms comprising EGX30, which includes the 30 most active firms in the Egyptian Stock Exchange.