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Tamer Mohamed Farahat Hemada Elshandidy
- Professor, Director of Graduate Programs
- Ext: 6274
Dr. Tamer Elshandidy is a Professor of Accounting and the Founding Director of Graduate Programs (MBA and DBA) at the College of Business Administration, Ajman University, UAE. Previously, he served as a Professor of Accounting and Head of the Accounting and Finance Division at Bradford University School of Management, UK. His academic journey includes roles as Associate and Assistant Professor of Accounting and PhD Program Coordinator at the University of Nottingham and University of Bristol, UK. Dr. Elshandidy's scholarly contributions are widely recognized, with numerous publications in top-tier journals (mostly A* and A in ABDC or 3* in ABS) that are frequently cited and award-winning. His academic expertise extends to refereeing for prestigious journals, funding bodies such as the British Academy and the European Science Foundation, and publishers like Oxford University Press. He has played a significant role in faculty promotion at several GCC universities. He serves as Associate Editor for Cogent Business and Management and is a member of the Editorial Board for Journal of Management and Governance. His academic standing is further reflected in his role as an External Examiner for Nottingham and Southampton Universities and an External Assessor for REF 2021 submissions at Newcastle and Durham Business Schools, UK. Additionally, he has validated academic programs for UK and Greek institutions through the Centre for Inclusion and Collaborative Partnerships (CICP) of the Open University, UK. Dr. Elshandidy has also held the position of Publicity Officer for the Financial Accounting and Reporting Special Interest Group (FARSIG) under the British Accounting and Finance Association (BAFA). Over the years, he contributed to the Standing Scientific Committee (SSC) of the European Accounting Association (EAA) Annual Congress and the SSC of FARSIG. He has delivered research seminars across the UK, Italy, Poland, and Egypt, establishing his international academic reputation. His experience includes supervising and examining graduate dissertations and theses at leading UK universities, further solidifying his contribution to the field of accounting.
Education
- PhD in Accounting (Risk Reporting Incentives: A Cross-Country Study), the University of Stirling, UK, 2012.
- MSc in Accounting “A Proposed Framework for Arab Regional Accounting Harmonization: An Empirical Study” University of Helwan, Egypt, 2004.
- B.Com (Accounting Major) University of Helwan, Egypt, 1998.
PhD in Accounting (Risk Reporting Incentives: A Cross-Country Study), the University of Stirling, UK, 2012.
MSc in Accounting “A Proposed Framework for Arab Regional Accounting Harmonization: An Empirical Study” University of Helwan, Egypt, 2004.
B.Com (Accounting Major) University of Helwan, Egypt, 1998.
Experience
- Professor of Accounting, Founding Director of DBA Program, Ajman University, UAE (January 2019-September 2023).
- Professor of Accounting & Head of Accounting and Finance Division Bradford University School of Management, UK. July 2017-January 2019.
- Associate Professor of Accounting, PhD Coordinator (Accounting), the University of Nottingham, UK. April 2017-June 2017.
- Assistant Professor in Accounting, PhD Coordinator (Accounting and Finance), the University of Bristol, UK. October 2010-March 2017.
- Lecturer in Statistics, the National Institution of Quality and Productivity (NIQP), Egypt. October 2007-October 2008.
- External Assessor for Research Excellence Framework (REF) Submissions 2021: Durham Business School (January 2020)and Newcastle Business School (January 2019), UK.
- External Examiner for Roehampton Business School (September 2016-December 2020), Southampton Business School (October 2017-December 2020), and Nottingham University Business School (September 2015-March 2017), UK.
- Revalidation & Validation Consultant. The Centre for Inclusion and Collaborative Partnerships (CICP), The Open University, UK. Revalidation for the BSc (Hons) Business Administration, The American College of Greece (ACG) (April 2015). Validation for the BA (Hons) in Accountancy, Leeds City College (July 2016), UK.
- Ad-hoc Referee (Frequent Reviewer for A and A* Journals) 2011-present. Abacus - Accounting and Business Research - Journal of Accounting and Public Policy - Accounting and Finance - Accounting in Europe - Accounting Forum - Advances in Accounting - Applied Financial Economics - British Accounting Review - Economic Modelling - European Accounting Review - Corporate Governance: An International Review - Journal of International Markets, Institutions, and Money - Journal of Applied Accounting Research - Journal of Banking and Finance - Journal of Business Finance and Accounting - Journal of International Accounting Research - Journal of Business Review - International Review of Financial Analysis - Managerial Auditing Journal - Schmalenbach Business Review - Journal of Business Strategy and the Environment - Meditari Accountancy Research - Journal of Accounting in Emerging Economies - Asian Journal of Accounting Research - Journal of Accounting & Organizational Change - Cogent Business & Management - Journal of International Accounting, Auditing and Taxation - International Journal of Accounting - Journal of Management & Governance - North American Journal of Economics and Finance - International Journal of Accounting and Information Management - African Journal of Accounting, Auditing, and Finance - Accounting Research Journal - Managerial Finance - Bosra Istanbul Review - Advances in Environmental Studies - Journal of Behavioral and Experimental Finance - Corporate Governance - Applied Economics - Finance Research Letters.
- Doctorate Supervision (October 2011-present): 16 students till completion at the University of Bristol, UK - Bradford University, UK-Ajman University, UAE.
- Doctorate Supervision (October 2011-present): 23 students at the University of Bristol - University of West of England - Portsmouth Business School - Kingston Business School, UK-Ajman University, UAE.
- MSc Supervision (August 2010- December 2018): 87 students (35 MSc students at the University of Stirling, UK - 42 MSc students at the University of Bristol, UK - 10 MSc students at the University of Nottingham, UK).
- MSc Examination (August 2010- December 2018): 107 MSc dissertations (45 dissertations at the University of Stirling, UK - 52 dissertations at the University of Bristol, UK - 10 dissertations at the University of Nottingham, UK).
Professor of Accounting, Founding Director of DBA Program, Ajman University, UAE (January 2019-September 2023).
Professor of Accounting & Head of Accounting and Finance Division Bradford University School of Management, UK. July 2017-January 2019.
Associate Professor of Accounting, PhD Coordinator (Accounting), the University of Nottingham, UK. April 2017-June 2017.
Assistant Professor in Accounting, PhD Coordinator (Accounting and Finance), the University of Bristol, UK. October 2010-March 2017.
Lecturer in Statistics, the National Institution of Quality and Productivity (NIQP), Egypt. October 2007-October 2008.
External Assessor for Research Excellence Framework (REF) Submissions 2021: Durham Business School (January 2020)and Newcastle Business School (January 2019), UK.
External Examiner for Roehampton Business School (September 2016-December 2020), Southampton Business School (October 2017-December 2020), and Nottingham University Business School (September 2015-March 2017), UK.
Revalidation & Validation Consultant. The Centre for Inclusion and Collaborative Partnerships (CICP), The Open University, UK. Revalidation for the BSc (Hons) Business Administration, The American College of Greece (ACG) (April 2015). Validation for the BA (Hons) in Accountancy, Leeds City College (July 2016), UK.
Ad-hoc Referee (Frequent Reviewer for A and A* Journals) 2011-present. Abacus - Accounting and Business Research - Journal of Accounting and Public Policy - Accounting and Finance - Accounting in Europe - Accounting Forum - Advances in Accounting - Applied Financial Economics - British Accounting Review - Economic Modelling - European Accounting Review - Corporate Governance: An International Review - Journal of International Markets, Institutions, and Money - Journal of Applied Accounting Research - Journal of Banking and Finance - Journal of Business Finance and Accounting - Journal of International Accounting Research - Journal of Business Review - International Review of Financial Analysis - Managerial Auditing Journal - Schmalenbach Business Review - Journal of Business Strategy and the Environment - Meditari Accountancy Research - Journal of Accounting in Emerging Economies - Asian Journal of Accounting Research - Journal of Accounting & Organizational Change - Cogent Business & Management - Journal of International Accounting, Auditing and Taxation - International Journal of Accounting - Journal of Management & Governance - North American Journal of Economics and Finance - International Journal of Accounting and Information Management - African Journal of Accounting, Auditing, and Finance - Accounting Research Journal - Managerial Finance - Bosra Istanbul Review - Advances in Environmental Studies - Journal of Behavioral and Experimental Finance - Corporate Governance - Applied Economics - Finance Research Letters.
Doctorate Supervision (October 2011-present): 16 students till completion at the University of Bristol, UK - Bradford University, UK-Ajman University, UAE.
Doctorate Supervision (October 2011-present): 23 students at the University of Bristol - University of West of England - Portsmouth Business School - Kingston Business School, UK-Ajman University, UAE.
MSc Supervision (August 2010- December 2018): 87 students (35 MSc students at the University of Stirling, UK - 42 MSc students at the University of Bristol, UK - 10 MSc students at the University of Nottingham, UK).
MSc Examination (August 2010- December 2018): 107 MSc dissertations (45 dissertations at the University of Stirling, UK - 52 dissertations at the University of Bristol, UK - 10 dissertations at the University of Nottingham, UK).
Teaching Area
- Financial Accounting/Reporting, International Accounting, and Quantitative Research Methods.
Financial Accounting/Reporting, International Accounting, and Quantitative Research Methods.
Research
- Research Areas: Textual analysis - Corporate (risk) disclosure strategies - Corporate governance - IFRS implications - Market-based accounting research.
Research Areas: Textual analysis - Corporate (risk) disclosure strategies - Corporate governance - IFRS implications - Market-based accounting research.
Publications
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JournalAcheampong, A., & Elshandidy, T. (2025)., Does sustainability disclosure improve analysts’ forecast accuracy? Evidence from European banks., Financial Innovation (Q1 in Scopus), Vol: 11, pp.1 - 32, May 2024, doi: https://doi.org/10.1186/s40854-024-00693-5
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JournalElshandidy, T., Eldash, H., & Allam, N. (2025). , Do firm, governance, and country characteristics predict financial constraints across GCC stock markets?, Cogent Business and Management (Q2), Vol: 12, pp.2451127 - , Jan 2025, doi: https://doi.org/10.1080/23311975.2025.2451127
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JournalElshandidy, T., Bamber, M., & Omara, H. (2024)., Across the faultlines: A multi-dimensional index to measure and assess board diversity, International Review of Financial Analysis, (A in ABDC, 3* in ABS, Q1 in Scopus)., Vol: 93, pp.103231 - , Mar 2024, doi: https://doi.org/10.1016/j.irfa.2024.103231
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JournalElshandidy, T., Elsayed, M., Omara, H., Sharma, A. (2024), Board diversity faultlines and textual social and environmental disclosures, Review of Quantitative Finance and Accounting (B in ABDC, 3* in ABS), Aug 2024, doi: https://doi.org/10.1007/s11156-024-01329-6
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JournalAcheampong, A., & Elshandidy, T. (2024). Do social and environmental disclosures impact information asymmetry?., Economics Letters (A in ABDC, 3* in ABS, Q2 in Scopus), Vol: 234, pp.111487 - , Mar 2024, doi: https://doi.org/10.1016/j.econlet.2023.111487
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JournalElshandidy, T., & Elsayed, M. (2024)., The UK financial firms’ textual risk disclosure and market liquidity, Finance Research Letters (A in ABDC, Q1 in Scopus), pp.105305 - , Mar 2024, doi: https://doi.org/10.1016/j.frl.2024.105305
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JournalElshandidy, T., & Kamel, H. (2024), Tone of narrative disclosures and earnings management: UK evidence., Advances in Accounting (A in ABDC, Q2 in Scopus), Vol: 64, pp.100710 - , Jan 2024, doi: https://doi.org/10.1016/j.adiac.2023.100710
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JournalElshandidy, T, Ahmed, Y (2023), Stock price informativeness of risk disclosure: Does time orientation matter?, Quarterly Review of Economics and Finance (B in ABDC, Q1 in Scopus), Vol: 89, pp.149 - 162, Jun 2023, doi: https://doi.org/10.1016/j.qref.2023.03.008
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JournalAbdulla, H., & Elshandidy, T. (2023). , Do governance factors affect the effectiveness of risk management disclosure in UAE banks?, . Cogent Business & Management (Q2 in Scopus), Vol: 10, pp. 2238394 - 2238394, Jul 2023, doi: https://doi.org/10.1080/23311975.2023.2238394
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JournalElsayed, M., Elshandidy, T., & Ahmed, Y, (2023)., Is expanded auditor reporting meaningful? UK evidence., Journal of International Accounting, Auditing and Taxation, Forthcoming, (3* in ABS, Q1 in Scopus), Jan 2023, doi: https://doi.org/10.1016/j.intaccaudtax.2023.100582
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JournalElsayed, M., Elshandidy, T., & Ahmed, Y. (2022)., Corporate failure in the UK: An examination of corporate governance reform, International Review of Financial Analysis, 82, 102165, (A in ABDC, 3* in ABS, Q1 in Scopus), Apr 2022, doi: https://doi.org/10.1016/j.irfa.2022.102165
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JournalT Elshandidy, M Elmassri, M Elsayed. (2022), Integrated reporting, textual risk disclosure, and market value, Corporate Governance (B in ABDC, Q1 in Scopus), Vol: 22, pp.173 - 193, Jan 2022, doi: https://doi.org/10.1108/CG-01-2021-0002
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JournalElshandidy, T., Zeng, C. (2022), The Value Relevance of Risk-Related Disclosure: Does the Tone of Disclosure Matter?, Borsa Istanbul Review, 22 (3), 498-514. (Q1 in Scopus), Jan 2022, doi: https://doi.org/10.1016/j.bir.2021.06.014
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JournalElshandidy, T. (2022)., The Impact of Corporate Governance on the Quality of Integrated Reporting: International Evidence., The Journal of Asian Finance, Economics and Business, (Q2 in Scopus), May 2022, doi: https://doi.org/10.13106/jafeb.2022.vol9.no6.0127
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JournalElshandidy, T., Acheampong, A. (2021). Does hedge disclosure influence cost of capital for European banks? International Review of Financial Analysis, 78(6), 101942. (A in ABDC, 3* in ABS, Q1 in Scopus)., j, Oct 2021, doi: https://doi.org/10.1016/j.irfa.2021.101942
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JournalElshandidy, T, Eldaly, K., and Abdel-Kader, M. (2021). Independent oversight of the auditing profession: A review of the literature. International Journal of Auditing, 25 (2), 373-407. (A in ABDC, Q1 in Scopus), J, Nov -0001, doi: https://doi.org/10.1111/ijau.12224
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JournalAcheampong, A, and Elshandidy, T. (2021). Does soft information determine credit risk? Text-based evidence from European banks. Journal of International Financial Markets, Institutions and Money, 75(6),101303 . (A in ABDC, 3* in ABS, Q1 in Scopus)., J, pp.101303 - , Nov 2021, doi: https://doi.org/10.1016/j.irfa.2021.101942
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Ahmed, Y, and Elshandidy, T. (2021).Effect of leverage deviation on choices and outcomes of public versus non-public acquisitions. International Journal of Finance & Economics, 26(3), 3436-3459. (B in ABDC, 3* in ABS).
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JournalElsayed, M., and Elshandidy, T. (2021). Internal control effectiveness, textual risk disclosure, and their usefulness: U.S. evidence. Advances in Accounting, 53 (June), 100531. (A in ABDC)., Advances in Accounting (A in ABDC, Q2 in Scopus), Jun 2021, doi: https://doi.org/10.1016/j.adiac.2021.100531
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JournalElsayed, M., and Elshandidy, T. (2020). Do narrative-related disclosures predict corporate failure? Evidence from UK non-financial publicly quoted firms.International Review of Financial Analysis, 71(October), 101555. (A in ABDC, 3* in ABS, Q1 in Scopus)., International Review of Financial Analysis, 82, 102165, (A in ABDC, 3* in ABS, Q1 in Scopus), Oct 2020, doi: https://doi.org/10.1016/j.irfa.2020.101555
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Elshandidy, T., Shrives, P., Bamber, M., and Abraham, S. (2018). Risk Reporting: A review of the literature and implications for future research: Journal of Accounting Literature, 40(1), 54-82. (A in ABDC, 3* in ABS, Q1 in Scopus): Selected as one of the most cited papers published in JAL since 2016.
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Ahmed, Y, and Elshandidy, T. (2018). Why do over-deviated firms undertake foreign acquisitions? International Business Review, 27(2), 309-327. (A in ABDC, 3* in ABS, Q1 in Scopus).
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Elshandidy, T., Neri, L., and Guo, Y. (2018). The determinants and use of risk disclosure quality: Evidence from China. Journal of Applied Accounting Research 19(4),518-536.(B in ABDC, 2* in ABS).
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Tan, Y., Zeng, C., and Elshandidy, T. (2017). Risk disclosures, international orientation, and share price informativeness: Evidence from China. Journal of International Accounting, Auditing, and Taxation, 29, 81-102. (3* in ABS, Q1 in Scopus).
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Elshandidy, T. and Gan, M. (2017). The effect of board structure and ownership structure on risk disclosure quality. Egyptian Accounting Review, Faculty of Commerce, Cairo University, 6.
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Elbakry, A., Nwachukwu, J., Abdou, A., and Elshandidy, T. (2017). Comparative evidence on the value relevance of IFRS-based accounting information in Germany and the UK. Journal of International Accounting, Auditing, and Taxation, 28, 10-30. (3* in ABS, Q1 in Scopus): Selected as one of the most cited papers since 2016.
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Elshandidy, T., and Shrives, P. (2016). The environmental incentive for and usefulness of textual risk disclosure: The German Evidence, the International Journal of Accounting, 51(4), 464–486. (A in ABDC, 3* in ABS, Q1 in Scopus).
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Ahmed, Y, and Elshandidy, T. (2016). The effect of bidder conservatism on M&A decisions: Text-based evidence from US 10-K filings. International Review of Financial Analysis, 46, 176-190. (A in ABDC, 3* in ABS, Q1 in Scopus).
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Elshandidy, T., and Neri, L. (2015). Corporate Governance, risk disclosure practices, and market liquidity: Comparative evidence from UK and Italy. Corporate Governance: An International Review, 23(4), 331,356. (A in ABDC, 3* in ABS, Q1 in Scopus). Selected as one of the most cited papers published in CGIR since 2014.
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Elshandidy, T, Fraser, I., and Hussainey, K. (2015). What drives mandatory and voluntary risk reporting variations across Germany, UK and US? The British Accounting Review, 47(4), 376–394. (A* in ABDC, 3* in ABS, Q1 in Scopus): Selected as one of the most cited papers published in BAR since 2013.
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Elshandidy, T., and Hassinen, A. (2014). Do IFRS and board of directors’ independence affect accounting conservatism? Applied Financial Economics, 24(16), 1091-1102. (B in ABDC, 2* in ABS).
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Elshandidy, T. (2014). Value relevance of accounting information: Evidence from an emerging market. Advances in Accounting, 30(1), 176-186. (A in ABDC, 2* in ABS).
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Elshandidy, T., Fraser, I., and Hussainey, K. (2013). Aggregated, voluntary and mandatory risk disclosure incentives: Evidence from UK FTSE all Share companies. International Review of Financial Analysis; 30, 320-333. (A in ABDC, 3* in ABS, Q1 in Scopus): Awarded the most cited paper certificate (December 2016).
Acheampong, A., & Elshandidy, T. (2025)., Does sustainability disclosure improve analysts’ forecast accuracy? Evidence from European banks., Financial Innovation (Q1 in Scopus), Vol: 11, pp.1 - 32, May 2024, doi: https://doi.org/10.1186/s40854-024-00693-5
In this study, we investigate the extent to which sustainability disclosures in the narrative sections of European banks’ annual reports improve analysts’ forecasting accuracy. We capture sustainability disclosures with a machine learning approach and use forecast errors as a proxy for analysts’ forecast accuracy. Our results suggest that sustainability disclosures significantly improve analysts’ forecasting accuracy by reducing forecast errors. In a further analysis, we also find that the introduction of Directive 2014/95/European Union is associated with increased disclosure content, which reduces forecast error. Collectively, our results suggest that sustainability disclosures improve forecast accuracy, and the introduction of the new EU directive strengthens this improvement. These results hold after several robustness tests. Our findings have important implications for market participants and policymakers.
About the journal
Elshandidy, T., Eldash, H., & Allam, N. (2025). , Do firm, governance, and country characteristics predict financial constraints across GCC stock markets?, Cogent Business and Management (Q2), Vol: 12, pp.2451127 - , Jan 2025, doi: https://doi.org/10.1080/23311975.2025.2451127
The paper explores the extent to which firm-level characteristics, governance attributes, and country-level characteristics predict the financial constraints of non-financial listed firms in stock markets for countries in the Gulf Corporation Council (GCC). The study employs widely used explanatory indicators in the less studied context of GCC to capture three significant effects of firm-specific, governance mechanisms, and country-specific characteristics used for predicting financial constraints. Across seven different GCC stock markets, financial data were collected from 2010 to 2020, resulting in having 2211 firm-year observations. Our multivariant analysis shows that combining indicators to capture firm-specific, governance, and country-specific attributes improved the ability of the empirical model to predict the financial constraints for non-financial firms in the GCC. These empirical findings statistically specify the significant indicators at each level of explanatory variables. The empirical results further indicate that an Altman Z-score is a better indicator than the Current Ratio as a responding variable to predict financial constraints in the GCC stock markets. Overall, the paper’s results are essential for investors and market regulators in the GCC and other contexts since firms’ financial constraints are one of the most prominent aspects that threaten the continuity of these firms.
About the journal
Elshandidy, T., Bamber, M., & Omara, H. (2024)., Across the faultlines: A multi-dimensional index to measure and assess board diversity, International Review of Financial Analysis, (A in ABDC, 3* in ABS, Q1 in Scopus)., Vol: 93, pp.103231 - , Mar 2024, doi: https://doi.org/10.1016/j.irfa.2024.103231
Drawing on faultline theory, this article proposes a multidimensional diversity index (MDI) to measure and assess board diversity. Herein, we contest that diversity needs to be considered across multiple dimensions, or faultlines. Based on the FTSE all-share non-financial firms (2005–2018), the proposed MDI captures the joint effect of differences in director attributes across four faultlines (surface, identity, demographic, and meso-level). After constructing our MDI, we examine how shifts in diversity impact firm risk. Our analysis indicates that moderate levels of diversification (between 0.25 and 0.75) are both typical across our sample and reduce riskiness. At extreme levels of diversification, however, we find that risk increases. We perform further analysis that supports these findings while also showing that, regardless of whether boards are moderately or extremely diversified, their faultline scores are significantly correlated with industry competition and financial risk.
About the journal
Elshandidy, T., Elsayed, M., Omara, H., Sharma, A. (2024), Board diversity faultlines and textual social and environmental disclosures, Review of Quantitative Finance and Accounting (B in ABDC, 3* in ABS), Aug 2024, doi: https://doi.org/10.1007/s11156-024-01329-6
By creating a comprehensive corporate social-and environmental-related lexicon, this paper examines the extent to which board diversity impacts social and environmental disclosures. Contributing to diversity literature, we rely on the faultlines concept, postulated and developed by organizational research, which is hypothetical dividing lines that split a boardroom into relatively homogeneous subgroups based on directors’ diversified attributes. Employing a sample of FTSE All-share non-financial firms, our findings show that firms with higher faultline strength in the boardroom (ie, relatively more homogeneous subgroups) exhibit significantly lower levels of both social and environmental disclosures in their narrative sections of annual reports.
About the journal
Acheampong, A., & Elshandidy, T. (2024). Do social and environmental disclosures impact information asymmetry?., Economics Letters (A in ABDC, 3* in ABS, Q2 in Scopus), Vol: 234, pp.111487 - , Mar 2024, doi: https://doi.org/10.1016/j.econlet.2023.111487
We examine the impact of social and environmental disclosures (SEDs) on information asymmetry. Employing data from 145 banks from 2005 to 2021 across 19 European (EU) countries. Our findings reveal that both SEDs reduce information asymmetry by increasing market liquidity. We further find that the observed impact of such disclosures is more pronounced for banks operating in countries that pay high attention to human development.
About the journal
Elshandidy, T., & Elsayed, M. (2024)., The UK financial firms’ textual risk disclosure and market liquidity, Finance Research Letters (A in ABDC, Q1 in Scopus), pp.105305 - , Mar 2024, doi: https://doi.org/10.1016/j.frl.2024.105305
The informativeness of textual risk disclosure (TRD) of financial firms is unexplored in the extant literature. Employing a sample of UK FTSE all-share financial firms, this paper fills this gap in the literature by providing the first empirical evidence on the relationship between TRD and market liquidity. Consistent with the convergence argument for TRD, we find that TRD decreases the financial firms’ market liquidity. However, consistent with the divergence argument for TRD, our further analysis shows that TRD increases the market liquidity of large financial firms. Overall, our results suggest that financial firms’ TRD is informative to market participants. In addition to the practical and policy implications of our results, this paper opens avenues for future research to use our textual method to measure the determinants and use risk information of financial firms in different contexts.
About the journal
Elshandidy, T., & Kamel, H. (2024), Tone of narrative disclosures and earnings management: UK evidence., Advances in Accounting (A in ABDC, Q2 in Scopus), Vol: 64, pp.100710 - , Jan 2024, doi: https://doi.org/10.1016/j.adiac.2023.100710
This paper investigates whether a relationship exists between the tone of narrative disclosures and engagement in earnings management activities. Using FTSE all-share nonfinancial firms, our estimates show a significant association between the tone of narrative disclosure (measured by the percentage of positive words, negative words, and net tone) and the prevalence of earnings management. The results also suggest that manipulating firms, which represent extreme cases of earnings management, are more likely to use less negative tone to conceal their fraudulent practices. In contrast, non-manipulating firms tend to use more positive tone to mask their involvement in managing earnings. Additionally, the paper examines the market reaction to both earnings management and the tone of narrative disclosure. The findings reveal that earnings management and net tone are positively associated with abnormal market returns for non-manipulating firms, but have no significant association for manipulating firms. Overall, the paper highlights the important role of the tone of narrative disclosures in providing clarity to the numbers presented in annual reports.
About the journal
Elshandidy, T, Ahmed, Y (2023), Stock price informativeness of risk disclosure: Does time orientation matter?, Quarterly Review of Economics and Finance (B in ABDC, Q1 in Scopus), Vol: 89, pp.149 - 162, Jun 2023, doi: https://doi.org/10.1016/j.qref.2023.03.008
This paper investigates the extent to which firms’ stock prices may incorporate aggregate risk disclosure levels differently depending on its time orientation, whether forward-looking or non-forward-looking. Using a sample period of ten years for the UK FTSE all-share non-financial firms, this paper used price synchronicity to capture stock informativeness and utilized textual analysis of the narrative sections of annual reports to capture aggregate risk disclosure levels and time orientation. Our empirical results suggest that, whereas the UK market does not incorporate aggregate risk disclosure, it does react significantly to the time orientation of the content of risk disclosure. Specifically, we find that non-forward-looking risk disclosure is significantly and negatively associated with stock price synchronicity, suggesting that this disclosure is firm-specific and it is difficult to replace with market-wide factors. However, we also find that forward-looking risk disclosure, is significantly and positively associated with stock price synchronicity, indicating that such disclosure is generic, and it can be replaced by market-wide factors. These results are likely to have theoretical and practical implications because they testify to the importance of considering the content (time orientation) rather than the level of aggregate risk information when observing the informativeness of the narrative sections of annual reports.
About the journal
Abdulla, H., & Elshandidy, T. (2023). , Do governance factors affect the effectiveness of risk management disclosure in UAE banks?, . Cogent Business & Management (Q2 in Scopus), Vol: 10, pp. 2238394 - 2238394, Jul 2023, doi: https://doi.org/10.1080/23311975.2023.2238394
This paper examines the impact of governance factors on the effectiveness of credit, market, operational, and aggregate risk disclosures in banks. The study measures the effectiveness of risk management disclosure by assessing the level of compliance with local and international banking regulations in the UAE. By controlling for year-fixed effects and other bank-level factors, the empirical analysis reveals that the influence of governance factors on the effectiveness of risk management disclosure varies depending on the type of risk being addressed (credit, market, operational, and aggregate). Moreover, the paper distinguishes between two prominent banking models, Islamic and Conventional, in line with the UAE’s banking landscape. The results indicate that differences in the effectiveness of risk management disclosure are observed mainly in the context of market risk between Islamic and Conventional banks. These findings hold significant practical implications not only within the UAE but also beyond its borders. By understanding the key governance factors that impact risk management disclosures, banks in the UAE can enhance their risk management practices and compliance with regulations. The insights gained from this paper can guide policymakers, regulators, and industry practitioners in implementing measures to improve risk management effectiveness. Furthermore, the results contribute to the broader academic literature on risk management and governance in the banking sector, offering valuable knowledge for researchers and scholars worldwide.
About the journal
Elsayed, M., Elshandidy, T., & Ahmed, Y, (2023)., Is expanded auditor reporting meaningful? UK evidence., Journal of International Accounting, Auditing and Taxation, Forthcoming, (3* in ABS, Q1 in Scopus), Jan 2023, doi: https://doi.org/10.1016/j.intaccaudtax.2023.100582
In 2013, the United Kingdom (UK) Financial Reporting Council (FRC) mandated independent auditors to provide an expanded audit report to disclose the risks of material misstatement and application of materiality. This paper examines the information content and economic consequences of the expanded auditor’s report and offers three main results. We first investigate the usefulness of auditor reporting regime change and find evidence that the new reporting regime has some influence on market indicators. Second, we document that firms receiving an expanded audit report with a higher level of disclosure on risks of material misstatement (materiality) exhibit significantly higher (lower) idiosyncratic risk, beta, and cost of equity. That is, the expanded auditor’s disclosure meaningfully affects firms’ risk fundamentals. Third, we find that information conveyed by the expanded auditor’s report impacts bid-ask spread, trading volume, volatility of market returns, and analyst forecast dispersion. Collectively, our analyses suggest that auditors provide information that meaningfully reflects the risks that the audited companies face. Furthermore, this information is associated with significant economic consequences for capital market participants, implying that it is not generic. This firm-specific and useful disclosure supports the FRC (followed by International Auditing and Assurance Standard Board (IAASB) and Public Company Accounting Oversight Board (PCAOB)) decision mandating the expanded audit report and provides evidence-based insights to major recent structural reforms aiming at proposing remedies to audit and capital market problems in the UK, and beyond.
About the journal
Elsayed, M., Elshandidy, T., & Ahmed, Y. (2022)., Corporate failure in the UK: An examination of corporate governance reform, International Review of Financial Analysis, 82, 102165, (A in ABDC, 3* in ABS, Q1 in Scopus), Apr 2022, doi: https://doi.org/10.1016/j.irfa.2022.102165
In the context of major corporate collapses, executive compensation, board network, gender diversity and oversight committees have all received attention in a package of corporate governance (CG) reforms that were recently issued in the UK. This paper examines whether these reforms of CG can influence the likelihood of corporate failure (CF). It also investigates how efficient they are when CF approaches. After controlling for variables that prior research shows to be related to CF, we find that CF is less likely when a firm is characterized by a lower executive compensation, larger size of the board's social network, and smaller degree of the board's managerial network. However, board gender diversity and independence of oversight committees do not reduce the likelihood of CF. We further observe that the explanatory power of these CG variables is significant but relatively decreased as the time to CF closes. This implies that despite the capability of these variables to render early warning alerts of CF, they are less helpful (efficient) as failure becomes closer. Our results remain robust after a battery of sensitivity tests and addressing potential endogeneity problems. Collectively, the evidence provided by our paper should be of interest to the UK's regulatory bodies (Financial Reporting Council) and legislators (the UK's Parliament), since it shows the practical implications of the UK's CG Code and other governance regulations on reducing future corporate collapses. This paper provides timely evidence-based insights to major recent structural reforms aiming at proposing remedies to CG problems in the UK.
About the journal
T Elshandidy, M Elmassri, M Elsayed. (2022), Integrated reporting, textual risk disclosure, and market value, Corporate Governance (B in ABDC, Q1 in Scopus), Vol: 22, pp.173 - 193, Jan 2022, doi: https://doi.org/10.1108/CG-01-2021-0002
Purpose Exploiting the mandatory provision of integrated reporting in South Africa, this paper aims to investigate whether this regulatory switch from the conventional annual report is associated with differences in the level of textual risk disclosure (TRD). This paper also examines the economic usefulness of this regulatory change by observing the impact of TRD on the complying firms’ market values. Design/methodology/approach Archival data are collected and examined using time-series difference design and difference-in-differences design. Findings The authors find that the level of TRD within the mandatory integrated reporting is significantly lower than that of annual reports. The authors find that the impact of TRD in integrated reporting on market value compared to that of annual reports is statistically not different from zero. The authors’ further analyses suggest that corporate governance effectiveness is not a moderating factor to the study results. The results are robust to comparisons with the voluntary adoption of integrated reporting in the UK. Originality/value Collectively, the study results suggest that managers’ adherence to the mandatory provision of integrated reporting has significantly decreased the level of (voluntary) TRD they tended to convey within the conventional annual reports, resulting in a trivial impact on market value. These unintended consequences should be of interest to the International Integrated Reporting Council and other bodies interested in integrated reporting.
About the journal
Elshandidy, T., Zeng, C. (2022), The Value Relevance of Risk-Related Disclosure: Does the Tone of Disclosure Matter?, Borsa Istanbul Review, 22 (3), 498-514. (Q1 in Scopus), Jan 2022, doi: https://doi.org/10.1016/j.bir.2021.06.014
This paper investigates whether risk-related disclosure, which includes aggregate risk disclosure and its tone, including upside and downside risk disclosures, is value relevant for investors in the UK market. Based on 1941 firm-year observations for nonfinancial firms listed on the FTSE All-Share, we employ fixed-effect estimations and find that the value relevance of aggregate risk information is not statistically observable unless a distinction is made in its tone. Specifically, upside- (downside-) risk disclosure significantly increases (decreases) stock prices. We also find that the value relevance of risk information exhibits cross-sectional variations conditional on firms’ growth and profitability. In particular, we find an asymmetric response of stock prices to upside- and downside-risk disclosures for high-growth firms but not those with low growth. In addition, profit-making firms, but not loss-making firms, provide upside and downside disclosures that significantly influence stock prices. Our paper contributes to the extant research on value relevance and risk reporting by providing new evidence on the extent to which, and how, combining the accounting numbers that are examined extensively in prior research with non-accounting information (i.e., risk information) is important for observing value relevance. Our paper also advances prior research on the usefulness of risk disclosure by looking at the tone of this information and how the market responds to each type of disclosure.
About the journal
Elshandidy, T. (2022)., The Impact of Corporate Governance on the Quality of Integrated Reporting: International Evidence., The Journal of Asian Finance, Economics and Business, (Q2 in Scopus), May 2022, doi: https://doi.org/10.13106/jafeb.2022.vol9.no6.0127
This paper aims to investigate the impact of corporate governance on the quality of integrated reporting. Corporate governance includes internal (board size, board independence, and board diversity) and external (audit quality and enforcement) governance factors. This paper develops an index to capture the quality of integrated reporting by employing the completeness of information required by the International Integrated Reporting Council (IIRC). For an international sample, the paper manually collects 160 integrated reports along with internal and external governance factors and employs multivariate analyses to examine the association between these governance factors and the quality of integrated reporting. The empirical results suggest that firms with a larger board of directors, a larger proportion of female members on board, and located in countries with enforcement for integrated reporting requirements have a higher quality of integrated reporting. Our conclusions still hold after accounting for several conditions, including the industry-fixed and year-fixed effects. Together, these results suggest that both internal and external governance factors are important determinants for the quality of integrating reporting. These results have several theoretical and practical implications as they fulfill the absence of relevant studies on addressing the impact of internal and external corporate governance factors on the quality of integrated reporting.
About the journal
Elshandidy, T., Acheampong, A. (2021). Does hedge disclosure influence cost of capital for European banks? International Review of Financial Analysis, 78(6), 101942. (A in ABDC, 3* in ABS, Q1 in Scopus)., j, Oct 2021, doi: https://doi.org/10.1016/j.irfa.2021.101942
Upon extracting and quantifying relevant hedge information from the narrative section of European banks annual reports, this paper examines the impact of such information on cost of capital [as measured by weighted average cost of capital (WACC), cost of equity (COE) and cost of debt (COD)]. Using a sample of 1885 bank-year observations from 19 countries, we find that textual hedge disclosure leads to a significant reduction in WACC, COE, and COD; thus explains a substantial portion of variation in cost of capital. Further, we find that these results are stronger in countries with high corruption and financial openness. Our results are robust to several controls and model specification. Collectively, our findings enrich prior evidence which examines the economic consequences of hedge disclosure.
About the journal
Elshandidy, T, Eldaly, K., and Abdel-Kader, M. (2021). Independent oversight of the auditing profession: A review of the literature. International Journal of Auditing, 25 (2), 373-407. (A in ABDC, Q1 in Scopus), J, Nov -0001, doi: https://doi.org/10.1111/ijau.12224
This paper reviews the literature on the independent oversight of auditing from 2003 to 2018 and provides several research opportunities for filling the identified gaps in that literature. Our review classifies the literature into three themes: (1) the development of independent audit oversight, (2) the effects of independent audit oversight and (3) the interface between the independent audit oversight authorities and the global audit networks. The paper finds different effects of the independent audit oversight. Positively, it enhances the capital markets by adding more credibility to the published information. Auditors become more conservative about accepting or continuing to work with high-risk clients. At the same time, while audit fees have increased as a result of the additional requirements of independent audit regulation, non-audit fees from audit clients have decreased significantly. Negatively, independent oversight has increased audit concentration and resulted in insufficient choice of auditors in most audit markets.
About the journal
Acheampong, A, and Elshandidy, T. (2021). Does soft information determine credit risk? Text-based evidence from European banks. Journal of International Financial Markets, Institutions and Money, 75(6),101303 . (A in ABDC, 3* in ABS, Q1 in Scopus)., J, pp.101303 - , Nov 2021, doi: https://doi.org/10.1016/j.irfa.2021.101942
Upon extracting and quantifying relevant hedge information from the narrative section of European banks annual reports, this paper examines the impact of such information on cost of capital [as measured by weighted average cost of capital (WACC), cost of equity (COE) and cost of debt (COD)]. Using a sample of 1885 bank-year observations from 19 countries, we find that textual hedge disclosure leads to a significant reduction in WACC, COE, and COD; thus explains a substantial portion of variation in cost of capital. Further, we find that these results are stronger in countries with high corruption and financial openness. Our results are robust to several controls and model specification. Collectively, our findings enrich prior evidence which examines the economic consequences of hedge disclosure.
About the journal
Ahmed, Y, and Elshandidy, T. (2021).Effect of leverage deviation on choices and outcomes of public versus non-public acquisitions. International Journal of Finance & Economics, 26(3), 3436-3459. (B in ABDC, 3* in ABS).
Elsayed, M., and Elshandidy, T. (2021). Internal control effectiveness, textual risk disclosure, and their usefulness: U.S. evidence. Advances in Accounting, 53 (June), 100531. (A in ABDC)., Advances in Accounting (A in ABDC, Q2 in Scopus), Jun 2021, doi: https://doi.org/10.1016/j.adiac.2021.100531
This paper investigates the impact of internal control effectiveness (ICE) on the level of textual risk disclosure (TRD; including aggregate risk disclosure and its tone of good news and bad news about risk). Our findings suggest that firms with an ineffective internal control system exhibit significantly lower levels of TRD than firms with effective internal controls. Besides, we show a significant change in TRD behavior provided by managers of firms with recurrent ineffective internal controls. Pursuant to agency theory, this behavior change is prompted to reduce the expected public uncertainty and agency problems. We also investigate the usefulness of ICE reporting and TRD to the market. Results suggest that firms reporting ineffective internal controls are likely to have higher investor-perceived risk than firms reporting effective internal controls. Furthermore, TRD improves firms' market liquidity, and such improvement is principally driven by good news rather than bad news about risk. Collectively, our results fill an apparent gap in the literature on the importance of ICE, as well as the usefulness of the external auditor's attestation on a firm's internal controls and management TRD.
About the journal
Elsayed, M., and Elshandidy, T. (2020). Do narrative-related disclosures predict corporate failure? Evidence from UK non-financial publicly quoted firms.International Review of Financial Analysis, 71(October), 101555. (A in ABDC, 3* in ABS, Q1 in Scopus)., International Review of Financial Analysis, 82, 102165, (A in ABDC, 3* in ABS, Q1 in Scopus), Oct 2020, doi: https://doi.org/10.1016/j.irfa.2020.101555
By creating a comprehensive corporate failure-related lexicon, this paper explores the incremental explanatory power of narrative-related disclosures in predicting corporate failure. We find that corporate failure-related narrative disclosures significantly predict firms' failure up to two years ahead of actual failure. Additionally, we find that a financially distressed firm would become more vulnerable when financial constraints befall, which in turn would precipitate corporate failure. Various robustness tests assure the credibility of the explanatory ability of corporate failure-related narrative disclosures to predict corporate failure. Collectively, our results show the feasibility of these narrative-related disclosures in improving the explanatory power of models that predict corporate failure.
About the journal
Elshandidy, T., Shrives, P., Bamber, M., and Abraham, S. (2018). Risk Reporting: A review of the literature and implications for future research: Journal of Accounting Literature, 40(1), 54-82. (A in ABDC, 3* in ABS, Q1 in Scopus): Selected as one of the most cited papers published in JAL since 2016.
Ahmed, Y, and Elshandidy, T. (2018). Why do over-deviated firms undertake foreign acquisitions? International Business Review, 27(2), 309-327. (A in ABDC, 3* in ABS, Q1 in Scopus).
Elshandidy, T., Neri, L., and Guo, Y. (2018). The determinants and use of risk disclosure quality: Evidence from China. Journal of Applied Accounting Research 19(4),518-536.(B in ABDC, 2* in ABS).
Tan, Y., Zeng, C., and Elshandidy, T. (2017). Risk disclosures, international orientation, and share price informativeness: Evidence from China. Journal of International Accounting, Auditing, and Taxation, 29, 81-102. (3* in ABS, Q1 in Scopus).
Elshandidy, T. and Gan, M. (2017). The effect of board structure and ownership structure on risk disclosure quality. Egyptian Accounting Review, Faculty of Commerce, Cairo University, 6.
Elbakry, A., Nwachukwu, J., Abdou, A., and Elshandidy, T. (2017). Comparative evidence on the value relevance of IFRS-based accounting information in Germany and the UK. Journal of International Accounting, Auditing, and Taxation, 28, 10-30. (3* in ABS, Q1 in Scopus): Selected as one of the most cited papers since 2016.
Elshandidy, T., and Shrives, P. (2016). The environmental incentive for and usefulness of textual risk disclosure: The German Evidence, the International Journal of Accounting, 51(4), 464–486. (A in ABDC, 3* in ABS, Q1 in Scopus).
Ahmed, Y, and Elshandidy, T. (2016). The effect of bidder conservatism on M&A decisions: Text-based evidence from US 10-K filings. International Review of Financial Analysis, 46, 176-190. (A in ABDC, 3* in ABS, Q1 in Scopus).
Elshandidy, T., and Neri, L. (2015). Corporate Governance, risk disclosure practices, and market liquidity: Comparative evidence from UK and Italy. Corporate Governance: An International Review, 23(4), 331,356. (A in ABDC, 3* in ABS, Q1 in Scopus). Selected as one of the most cited papers published in CGIR since 2014.
Elshandidy, T, Fraser, I., and Hussainey, K. (2015). What drives mandatory and voluntary risk reporting variations across Germany, UK and US? The British Accounting Review, 47(4), 376–394. (A* in ABDC, 3* in ABS, Q1 in Scopus): Selected as one of the most cited papers published in BAR since 2013.
Elshandidy, T., and Hassinen, A. (2014). Do IFRS and board of directors’ independence affect accounting conservatism? Applied Financial Economics, 24(16), 1091-1102. (B in ABDC, 2* in ABS).
Elshandidy, T. (2014). Value relevance of accounting information: Evidence from an emerging market. Advances in Accounting, 30(1), 176-186. (A in ABDC, 2* in ABS).
Elshandidy, T., Fraser, I., and Hussainey, K. (2013). Aggregated, voluntary and mandatory risk disclosure incentives: Evidence from UK FTSE all Share companies. International Review of Financial Analysis; 30, 320-333. (A in ABDC, 3* in ABS, Q1 in Scopus): Awarded the most cited paper certificate (December 2016).
Conference Presentation
- Research Seminar Invitation: Queen’s University Belfast, Northern Ireland, UK (October 2024): Risk Management Disclosures and the Cost of Capital in the European Tourism Firms.
- Research Seminar Invitation: Benha University, Egypt (December 2022). Best Practices for International Publication.
- Research Seminar Invitation: University of Economics in Katowice, Poland (March 2021): How to publish in highly ranked journals?
- Research Seminar Invitation: Bristol Business School, University of West of England, UK (February 2021): The Impact of Board Diversity on Textual Social and Environmental Disclosures.
- Corporate governance, corporate textual risk disclosure and market value: Comparative evidence between two reporting systems of annual report and integrated report (with Elmasri, M). Presented at the 23rd annual conference of Financial Reporting and Business Communication Research Unit at the University of Reading (July 2019).
- Research Seminar Invitations: Southampton Business School, University of Southampton (December 2018). Paper presented: The value relevance of risk-related disclosure: Does tone of disclosure matter?
- Research Seminar Invitations: Bath Management School, University of Bath (February 2017). Paper presented: Stock price informativeness of risk-related disclosure: Does risk disclosure’s orientation matter?
- Research Seminar Invitations: Bradford University School of Management, University of Bradford (April 2016): paper presented: Stock price informativeness of risk-related disclosure: Does risk disclosure’s orientation matter?
- Research Seminar Invitations: Nottingham University Business School, University of Nottingham (March 2015). Paper presented: The environmental incentive for and usefulness of textual risk disclosure: The German Evidence.
- The value relevance of risk-related disclosure. Presented at the 20th annual conference of Financial Reporting and Business Communication Research Unit at the University of Bristol (July 2016). The 2016 South West Area Group (SWAG) Annual Regional Conference (September 2016).
Research Seminar Invitation: Queen’s University Belfast, Northern Ireland, UK (October 2024): Risk Management Disclosures and the Cost of Capital in the European Tourism Firms.
Research Seminar Invitation: Benha University, Egypt (December 2022). Best Practices for International Publication.
Research Seminar Invitation: University of Economics in Katowice, Poland (March 2021): How to publish in highly ranked journals?
Research Seminar Invitation: Bristol Business School, University of West of England, UK (February 2021): The Impact of Board Diversity on Textual Social and Environmental Disclosures.
Corporate governance, corporate textual risk disclosure and market value: Comparative evidence between two reporting systems of annual report and integrated report (with Elmasri, M). Presented at the 23rd annual conference of Financial Reporting and Business Communication Research Unit at the University of Reading (July 2019).
Research Seminar Invitations: Southampton Business School, University of Southampton (December 2018). Paper presented: The value relevance of risk-related disclosure: Does tone of disclosure matter?
Research Seminar Invitations: Bath Management School, University of Bath (February 2017). Paper presented: Stock price informativeness of risk-related disclosure: Does risk disclosure’s orientation matter?
Research Seminar Invitations: Bradford University School of Management, University of Bradford (April 2016): paper presented: Stock price informativeness of risk-related disclosure: Does risk disclosure’s orientation matter?
Research Seminar Invitations: Nottingham University Business School, University of Nottingham (March 2015). Paper presented: The environmental incentive for and usefulness of textual risk disclosure: The German Evidence.
The value relevance of risk-related disclosure. Presented at the 20th annual conference of Financial Reporting and Business Communication Research Unit at the University of Bristol (July 2016). The 2016 South West Area Group (SWAG) Annual Regional Conference (September 2016).
Memberships, Awards and Honors
- Fellow of the UK Higher Education Academy (HEA). Recognition reference: PR111293.
- Member of the Scientific Standing Committee (SSC) of the European Accounting Association (EAA) (2017, 2018, 2019, 2021, 2022, and 2024 Annual Congress)
- Publicity Officer for Financial Accounting and Reporting Special Interest Group under the British Accounting and Finance Association (BAFA), July 2014 - present.
- The British Accounting and Finance Association, BAFA.
- Nominated by BAFA, CPAF, and CDAF as a Panel Member to the Research Excellence Framework (REF) 2021 Sub-panel 17 (Business and Management Studies).
- Nominated for the Outstanding Teaching Category of the Student-led Bristol Teaching Awards, University of Bristol.
- Associate Editor for Cogent Business and Management (Scopus Q2), October 2014 - Present.