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wafaa salah

British University in Egypt (BUE), Business Administration, Faculty Member

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Dr. Wafaa is an associate professor of accounting at the Faculty of Business Administration, Economics, and Political Science at the British University in Egypt. Dr. Wafaa Salah completed her doctorate in the field of accounting at Cairo University, Faculty of Commerce, in 2014. She has several publications in peer-reviewed international journals and conference proceedings in this field. Her research interests are in international accounting and financial accounting. Her academic teaching experience follows the quality and validation standards of the United Kingdom and Egypt. She is a Fellow of the Higher Education Academy (FHEA) in the UK. Her teaching interests include international accounting, advanced financial accounting, management, and cost accounting. Since 2016, she has served as the interactive systems coordinator in her faculty. She is responsible for enhancing and spreading the usage of the interactive e-learning system for the faculty of business administration, economics, and political science. She has been the chairman of the Innovation and Technology Enabled Learning Committee in the faculty since 2020.
Phone: 01006581850
Address: El Sherouk City, Cairo.

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Papers by wafaa salah

The Effect of Firm Characteristics on Earnings Quality: The Moderating Role of Firm Size

Financial inclusion disclosure, internal governance quality, and bank ownership structure: An exploratory study in Egyptian banks

Heritage and Sustainable Development

The purpose of this study is to enhance sustainability and investigate the effectiveness of inter... more The purpose of this study is to enhance sustainability and investigate the effectiveness of internal governance mechanisms in enhancing financial inclusion (FI) disclosure quality in Egyptian banks. Pooled ordinary least squares (OLS) regression analysis is employed, using data from Egyptian banks listed over an eight-year period, from 2014 to 2021. Two indices are constructed: a FI disclosure quality index and an internal governance quality index. The findings of the study indicate that compliance with corporate governance best practices strengthens the monitoring quality of internal governance mechanisms in Egyptian banks. This, in turn, has a significant positive impact on the levels of FI disclosure. Results further show that ownership structure influences this relationship. Overall, the study findings support the notions of agency, stakeholders, and moral legitimacy theories. The study's originality lies in its focus on emerging FI practices in less-developed economies, and...

Climate Change Disclosure in Egyptian firms and its Key-Determinants Following the Implementation of Financial Regulatory Authority Decree No.108

Climate Change Disclosure in Egyptian firms and its Key-Determinants Following the Implementation of Financial Regulatory Authority Decree No.108, 2024

This study measures the extent of climate change disclosure by publicly traded firms on the Egypt... more This study measures the extent of climate change disclosure by publicly traded firms on the Egyptian stock exchange, a leading Arab and African emerging market. This is following the issuance of Decree No. 108 of 2021 by the Egyptian Financial Regulatory Authority (FRA), in accordance with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). The study further scrutinises the main drivers of such disclosure to evaluate the extent to which TCFD recommendations are effective in emerging markets and whether applying them on a mandatory basis matters. Via content analysis, the annual reports of 33 publicly traded firms were scrutinised during the period from 2021 to 2022. The analysis examines governance, strategy, risk management, and metrics and targets as the main areas of focus, with the objective of computing the cumulative climate change disclosure (CCD) scores. Ordinary least squares regression is employed in determining the factors that drive the extent of disclosure. The regression analysis underlines that belonging to high carbon impact industries, foreign-ownership, foreign-directors, board-size, and listing on S&P/EGX ESG index as key determinants that have a significant and positive impact on the level of CCD. However, it is observed that the presence of independent board members has a significant negative impact on the level of

The Impact of Corporate Governance on Stock Price and Trade Volume

International Journal of Accounting and Financial Reporting, 2016

The purpose of this paper is to investigate whether corporate governance is associated with stock... more The purpose of this paper is to investigate whether corporate governance is associated with stock prices and trade volume for 62 publicly traded firms on the Egyptian Stock Exchange during 2007-2014. The authors hypothesize that firms with strong corporate governance have a significant impact on stock prices and trade volume. To examine the associations, a multiple regression analysis is used. Consistent with the first hypothesis, this study finds firms with strong corporate governance have a significant impact on stock prices while has no significant impact on trade volume. Findings indicate that quality of corporate governance can affect firms' stock price while trading volume is not affected by the strength of corporate governance. The results suggest that Egyptian firms should improve their corporate governance as it has a significant effect on firms’ value. Also, providing diverse sources of financial information other than the financial statements and to ensure the presenc...

The Effect of Firm’s Size and Leverage on Profitability: a Panel Data Approach

Financial inclusion disclosure, internal governance quality, and bank ownership structure: An exploratory study in Egyptian banks

Heritage and Sustainable Development, 2023

The purpose of this study is to enhance sustainability and investigate the effectiveness of inter... more The purpose of this study is to enhance sustainability and investigate the effectiveness of internal governance mechanisms in enhancing financial inclusion (FI) disclosure quality in Egyptian banks. Pooled ordinary least squares (OLS) regression analysis is employed, using data from Egyptian banks listed over an eight-year period, from 2014 to 2021. Two indices are constructed: a FI disclosure quality index and an internal governance quality index. The findings of the study indicate that compliance with corporate governance best practices strengthens the monitoring quality of internal governance mechanisms in Egyptian banks. This, in turn, has a significant positive impact on the levels of FI disclosure. Results further show that ownership structure influences this relationship. Overall, the study findings support the notions of agency, stakeholders, and moral legitimacy theories. The study's originality lies in its focus on emerging FI practices in less-developed economies, and its relevance to regulators, policymakers, and professional bodies seeking to enhance FI practices and disclosures. The research also highlights the importance of the banking sector in achieving the national sustainable development goals (SDGs) by 2030 and facilitating informed decision-making by various stakeholder groups. The study's findings are supported by the robustness of the empirical analysis.

Financial inclusion disclosure internal governance quality and bank ownership structure

Heritage and Sustainable Development, 2023

The purpose of this study is to enhance sustainability and investigate the effectiveness of inter... more The purpose of this study is to enhance sustainability and investigate the effectiveness of internal governance mechanisms in enhancing financial inclusion (FI) disclosure quality in Egyptian banks. Pooled ordinary least squares (OLS) regression analysis is employed, using data from Egyptian banks listed over an eight-year period, from 2014 to 2021. Two indices are constructed: a FI disclosure quality index and an internal governance quality index. The findings of the study indicate that compliance with corporate governance best practices strengthens the monitoring quality of internal governance mechanisms in Egyptian banks. This, in turn, has a significant positive impact on the levels of FI disclosure. Results further show that ownership structure influences this relationship. Overall, the study findings support the notions of agency, stakeholders, and moral legitimacy theories. The study's originality lies in its focus on emerging FI practices in less-developed economies, and its relevance to regulators, policymakers, and professional bodies seeking to enhance FI practices and disclosures. The research also highlights the importance of the banking sector in achieving the national sustainable development goals (SDGs) by 2030 and facilitating informed decision-making by various stakeholder groups. The study's findings are supported by the robustness of the empirical analysis.

format_quoteThe study finds a positive relationship between internal governance quality and FID, validating agency theory in emerging markets.format_quote

Corporate governance, financial transparency and currency devaluation shocks: evidence from Egypt

Corporate Governance: The International Journal of Business in Society

Purpose This study aims to investigate the association between corporate governance and financial... more Purpose This study aims to investigate the association between corporate governance and financial transparency, using the moderating role of an Egyptian currency devaluation decision as a policy shock. Design/methodology/approach Data was collected for a sample of companies listed on the Egyptian stock exchange from 2014 to 2019. To control for time-invariant unobserved heterogeneity, the authors analyse panel data using an estimated generalised least squares regression model. Findings The findings underline the pitfalls of assuming that corporate governance mechanisms are effective regardless of circumstances and support the complementary roles of a number of theories in interpreting the empirical findings. Research limitations/implications This study is limited to non-financial companies and includes only corporate board and audit committee governance mechanisms. The study results have important implications for policymakers, international lending institutions, investors and accou...

AN EXAMINATION OF THE EFFECT OF THE CORONAVIRUS PANDEMIC ON FIRM VALUE IN EGYPT: A PANEL PMG/ARDL APPROACH

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCE STUDIES, 2022

This study investigates the short- and long-term consequences of coronavirus-induced declines in ... more This study investigates the short- and long-term consequences of coronavirus-induced declines in firm activity on firm value. This association was explored explicitly at both the market and industry levels. The panel data covers the period from March 19, 2020, to June 25, 2020, for 136 publicly traded non-financial companies. The panel pooling mean group/Autoregressive Distributed Lag estimate method is utilized to investigate the Coronavirus's short- and long-term effects on firm value. The primary findings indicate that the pandemic negatively impacted the daily stock returns of all industries besides healthcare. This outcome could be ascribed to a 24,3 percent increase in Egyptian healthcare spending in 2019/20 to assure the development of robust and adaptable healthcare systems able to withstand economic downturns like the one experienced during the epidemic. Moreover, the real estate and cyclical consumer sectors were most affected over the long term. The results may be explained by the notion that, during economic downturns, individuals prioritize spending on non-durable goods that are essential for day-to-day survival. This study contributes to the literature on financial accounting by explicating how real shocks affect the value of a company in a country with an emerging economy.

Effectiveness of E-Assessment in Quantitative Modules, COVID-19 Consequences: A Case Study by the British University in Egypt

The Covid-19 pandemic has globally influenced higher education, prompting the closure of thousand... more The Covid-19 pandemic has globally influenced higher education, prompting the closure of thousands of universities as a key strategy for social distancing. Therefore, universities faced a new set of challenges; on top of them was the unprecedented request for e-assessments, instead of on-CAMPUS assessments. This paper presents the findings of a case study conducted at the Faculty of Business Administration, Economics and Political Science (BAEPS) at the British University in Egypt (BUE) over the second semester of the academic year 2019–2020. The case-study aimed to assess the fast BAEPS response to the challenges of the new assessment mechanism, which have been conducted using various interactive educational platforms. Additionally, this paper aims to examine the degree to which the results of the e-assessment conducted during the pandemic are consistent with traditional paper assessment.

Investigating corporate social responsibility disclosure by banks from institutional theory perspective

Previous research on Corporate Social Responsibility (CSR) has mainly focused on the companies op... more Previous research on Corporate Social Responsibility (CSR) has mainly focused on the companies operating in different industry ields. Yet, a limited number of research has investigated the CSR practices at the banking sector. Accordingly, this study attempts to add further knowledge to this domain by measuring and comparing the extent and quality of CSR practices and its components which are: Employees, Community, Environment and Corporate governance at a larger geographical scale. Moreover, the relationship between institutional environment and the CSR and its components will be empirically examined. Secondary data provided by CSRHUB database is used for a sample of 231 banks operating in ive different regions from 2012 to 2015. The indings reveal that the CSR practices are exercised at a large scale across both developing and developed countries. Interestingly, the developing countries especially those considered as advanced economies or those having well established international business relations with other developed countries seem to have progressing banking system that provides CSR at the highest international levels. Accordingly, no signi icant difference has been reported between banks in such developing countries and their counterparts in other developed countries. On the contrary, regional settings have shown signi icant impact on the CSR in total and on each single component. These results provide valuable insights and implications to both practitioners and academia.

The Effect of Firm's Size and Leverage on Profitability: a panel data approach

The purpose of this study is to investigate the effect of firm's size and leverage on the profita... more The purpose of this study is to investigate the effect of firm's size and leverage on the profitability of publicly listed fi rms adopting IFRS. A Panel data fixed-effects regression model is employed to estimate the relationship between firm size and leverage on profitability, while controlling also for the effects of other variables as asset turnover and liquidity. The study is based on a sample of 94 firms from Malaysia over the period from 2012 to 2016. The study is applied to the industrial sector. The study concluded that firm size is positively and significantly related to profitability. However, leverage is negatively and significantly related to profitability. This study contributes to the literature by using data from a developing country. It provides an important insight on the international debate on the effects of firm size and leverage on decision making.

format_quoteLarge firms demonstrate better profitability due to economies of scale, while leverage shows a negative correlation with profitability.format_quote

The determinants of unconditional conservatisms: a crosscountry study

The determinants of unconditional conservatisms: a cross-country study, 2021

Accounting conservatism is a fundamental qualitative characteristic of financial statements. For ... more Accounting conservatism is a fundamental qualitative characteristic of financial statements. For centuries, it has had a significant impact on accounting practices. The goal of this study is to investigate the attributes of firms and countries, as well as their relative importance in influencing the level of unconditional conservatism. The data for Hierarchical Linear Modeling was collected from a sample of 5470 publicly traded firms from 55 countries between 2017 and 2019. The results reveal that country differences explain approximately 31 percent of the variance in the level of unconditional conservatism. Thus, firm attributes are superior in explaining crosscountry variance in the level of accounting conservatism. Regarding country attributes, the results suggest that firms located in well-governed countries exhibit much greater levels of unconditional conservatism in their financial reporting techniques. Furthermore, firms residing in countries with higher socioeconomic conditions recognise negative news in financial reports quicker than firms located in countries with lower socioeconomic conditions. Moreover, negative events may not be released instantaneously in economically free countries. Regarding firm attributes, both accounting regulations and tax growth influence the level of unconditional conservatism. The findings may have significant implications for regulators, standards-setters, analysts, and corporate governance. The findings of this study contribute to a better understanding of the effects of financial and nonfinancial factors in explaining accounting practices. Understanding the motivation that influences earnings quality will enable businesses to make more sound investment decisions.

format_quoteCountry characteristics account for 31% of the variation in unconditional conservatism, showing governance quality significantly influences conservatism levels.format_quote

The Effects of International Financial Reporting Standards on Financial Reporting Quality

The purpose of this study is to investigate whether the financial reporting under International F... more The purpose of this study is to investigate whether the financial reporting under International Financial Reporting Standards (IFRS) has more quality than local GAAP for firms listed on Taiwan stock exchange. Financial Reporting Quality is measured in this study by three attributes of earnings introduced in previous literature, namely: 1) earnings management expressed as managing towards positive earnings and earnings smoothing and, 2) timely loss recognition expressed as the asymmetric incorporation of economic gains and losses and large negative net income, and 3) value relevance. Ordinary Least Square (OLS) Regression analysis, Z-test, and Binary Logistic Regression are employed to investigate the pre-IFRS (2008-2010) and post-IFRS (2012-2014) adoption periods on value relevance, earnings management, and timely loss recognition. The study employs a sample of 426 manufacturing firms from 8 industries listed on Taiwan stock exchange. The study finds that firms adopting IFRS evidenc...

Do data mining techniques assist auditors in predicting high-risk accounts in MENA region countries

Afro-Asian J. of Finance and Accounting

The International Financial Reporting Standards and Firm Performance: A Systematic Review

Applied Finance and Accounting, 2020

This study reviews the accounting literature which investigates the effects of International Fina... more This study reviews the accounting literature which investigates the effects of International Financial Reporting Standards (IFRS) on firms’ financial performance to answer a debating question of how effective are the accounting standards in affecting financial performance and to provide guidance for future studies. The focus of the review is three primary streams, first, reasons and evidence of differences between countries in accounting practices; second, theories justifying the transition from local Generally Accepted Accounting Principles (GAAP) to IFRS; Third, the effect of accounting standards on firms’ financial performance regarding three broad groups: (1) Common law countries (2) Civil law countries, and (3) Middle East and North Africa (MENA) region countries affected by both sharia law and civil law. The review demonstrates that the transition from local GAAP to IFRS has been successful in affecting firms’ financial performance measures in less shareholder-oriented civil l...

Does Deferred Tax Mediate the Relationship Between Tax Planning and Earnings Management?

الفکر المحاسبى, 2019

The objective of this study is to investigate the effect of deferred tax disclosed under the Egyp... more The objective of this study is to investigate the effect of deferred tax disclosed under the Egyptian Accounting Standard No. 24, income taxes and tax planning on earnings management. In addition, to investigate the role of net deferred tax liabilities as a mediator between tax planning and earnings management. This study employs a sample of 127 firms listed on the Egyptian stock exchange covering the period 2012 to 2018 ending up with 889 observations. Stratified simple random sampling technique was used to select the sample. Path analysis is employed to examine the framework of the study and analyses the indirect effect of tax planning on earnings management. In addition, Ordinary Least Square Regression is employed to calculate discretionary accrual, which is used as a proxy to earnings management. The results suggest that tax planning does not have a significant direct effect on earnings management. However, it has a significant indirect effect on earnings management through net deferred tax liabilities, which in turn has a significant direct effect on earnings management. Findings of this paper may be of interest to financial analysts and standard setters, as they highlight how tax planning and deferred tax liabilities affect the quality of accounting information.

format_quoteTax planning (TP) indirectly affects earnings management through net deferred tax liabilities (NDTL), highlighting their significance as motivators for earnings manipulation.format_quote

The Impact of Country-Level and Firm-Level on Financial Performance: A Multilevel Approach

INTERNATIONAL JOURNAL OF ACCOUNTING AND TAXATION, 2018

The objective of this study is to demonstrate the relative importance of both firm-level and coun... more The objective of this study is to demonstrate the relative importance of both firm-level and country-level on financial performance. In addition, to explore the influence of firm-level variables (Accounting standards, firm age, firm size, liquidity) together with country-level variables (GDP per capita, inflation rate, development status, human development index, country openness to trade) on financial performance. Financial performance is measured in this study by Return on Assets. Hierarchical Linear Modeling is employed to identify the components of firm performance variability. This study employs a sample of 4095 publicly listed industrial firms from 54 countries listed on stock exchange covering the period from 2014 to 2016.The results show that both firmand country-level performance variations are significant. However, financial performance is explained better by firm-level performance variation that contributes up to 92.8% to variance in financial performance.Moreover, in terms of country-level variables, the results show that country openness to trade and human development indexare significantly affecting firm performance. Moreover, in term of firm-level variables, the results show that firm age is negatively related to firm financial performance and firms adopting IFRS are more likely to have higher financial performance than firms adopting local GAAP.This study contributes to the literature by employing Hierarchical Linear Modeling to integrate both firm-level and country-levelvariables into one cross-sectional analysis. It provides an insight to analysts and stakeholders to consider multi-level characteristics when examining financial performance.

format_quoteFirm-level effects, especially age and accounting standards, account for greater variance in financial performance than country-level factors in a sample of 4,095 firms.format_quote

Product Costing in Lean Manufacturing Organizations

Research Journal of Finance and Accounting, 2013

Lean manufacturing has been widely adopted by many organizations since the early 1990s. At the sa... more Lean manufacturing has been widely adopted by many organizations since the early 1990s. At the same time, the traditional accounting methods are almost obsolete with respect to Lean Manufacturing system. It fails to properly assess the operational improvements and therefore new cost management methods are needed to support the newly implemented lean manufacturing system. This paper discusses the drawbacks of traditional accounting methods used in companies that adopt Lean Manufacturing and presents two costing methods compatible with lean manufacturing organizations, Value Stream Costing (VSC) and features & characteristics costing which intended to cast light on the operational improvements achieved in organizations adopting lean manufacturing. Value Stream Costing appears to provide a bridge between operational views and financial views of lean, which enhances the transfer of information from shop level to management level.

format_quoteTraditional accounting methods distort costs in lean organizations, driving the need for Activity Based Costing (ABC) to identify waste and allocate costs accurately.format_quote

The integration of a newly defined N-gram concept and vector space model for documents ranking

International Journal of Business Intelligence and Data Mining, 2017

Vector space model (VSM) is used in measuring the similarity between documents according to the f... more Vector space model (VSM) is used in measuring the similarity between documents according to the frequency of common words among them. Furthermore, the N-gram concept is integrated in VSM to put into consideration the relation between common consecutive words in the documents. This approach does not consider the context and semantic dependency between nonconsecutive words existing in the same sentence. Accordingly, the approach proposed here presents a new definition of the N-gram concept as N non-consecutive words located in the same sentence, and utilises this definition in the VSM to enhance the measurement of the semantic similarity between documents. This approach measures and visualises the correlation between the words that are commonly existing together within the same sentence to enrich the analysis of domain experts. The results of the experimental work show the robustness of the proposed approach against the current ranking models.