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The purpose of this paper is to investigate the current level of voluntary corporate disclosure in the Egyptian Stock Exchange. In addition, it explores the factors influencing the extensiveness of voluntary disclosure and examines the potential consequences of such disclosure in regards to the phenomenon of earnings management.

A relevant disclosure index to the Egyptian context was adopted to assess the level of voluntary disclosure in the 2010 annual reports of the most actively traded companies listed on the Egyptian Stock Exchange. The relationship between the extent of voluntary disclosure and each specific-related factor was examined using unranked and ranked OLS regression models. Meanwhile, a system of simultaneous equations was performed using a two-stage least squares regression model in order to investigate whether companies with higher levels of voluntary disclosure exhibit lower levels of earnings management practices.

The results indicate that the level of voluntary disclosure is positively responsive to specific corporate attributes, namely, the type of auditing firm and the two industries of Healthcare and Pharmaceuticals, and Chemicals. However, no significant indications were found that firm size, leverage, profitability and liquidity are important determinants of corporate disclosure. Also, the results show no evidence to support the prior anticipation that a higher level of voluntary disclosure reduces the ability of managers to make use of earnings management. On the contrary, it was found that leverage and the tendency of firms to avoid reporting declines in earnings are the main drivers of the phenomenon of earnings management in Egypt.

This paper has important implications for both domestic and overseas investors in Egypt as well as the regulatory authorities in the developing economies.

The main contribution of this paper is its focus on the extent of voluntary disclosure in a developing country such as Egypt, which has a high potential for economic growth in the near future. Besides, this paper is the first to examine the relationship between the level of voluntary disclosure and the phenomenon of earnings management in the Egyptian context.

Purpose – Past literature suggests that the performance and turnover of the subordinate are affected by the support, abuse, and feedback provided by the supervisor. In this study, we posit that support, abuse, and feedback in an accounting firm, are in turn, affected by the supervisor's personality, as defined by the Big Five personality factors.

Methodology/approach – We conducted a web-based study with 115 accountants from a top 100 US accounting firm. The accountants completed questionnaires related to the personality of their supervisors along with questionnaires related to the support, abuse, and feedback they received from their supervisors. We analyzed the data using factor analysis and multiple regression.

Findings – We hypothesize that Openness and Agreeableness increase support; Neuroticism increases abuse, but less so if the supervisor is an Extravert; and Extraversion and Conscientiousness increase feedback. Among the hypothesized relationships, all are supported except the relationship between Openness and support. Additional findings are that Extraversion and Conscientiousness increase support; Agreeableness and Conscientiousness decrease abuse; and Agreeableness increases feedback.

Research implications – Our study contributes to the literature by demonstrating the relationship between the personality traits of supervisors and their behavior toward subordinates in an accounting setting. The results of our study can be used in identifying the supervisors who have the right personality for the position, which will likely improve the work environment and reduce turnover.