Mohamed Abd EL-Fattah, Amr Yousef, Ahmed Sakr, Karim Elfaham
The empirical study of accounting conservatism has received significant interest from scholars in recent years because it improves investors' ability to assess business performance by reducing the information asymmetry that exists between investors and management. In order to do this, this paper used two control variables, firm size and age, to examine the impact of accounting conservatism measured by (Asymmetric Timeliness (AT), Asymmetric Accrual to Cash-flow (AACF), and the Market-to-Book on firm characteristics (Investment Efficiency, Liquidity, Firm Leverage and Firm Growth). Accordingly, secondary data (panel data) are collected from Egyptian companies listed on Egyptian stock exchange according to EGX 100 after excluding the financial institutions and banks during the period from 2012 to 2021. The Generalized Least Squares (GLS) method for regression analysis was conducted for the panel data used for this research. In addition, the fixed versus random effect models had been fitted, and the Hausman test had been used to select the suitable method of fixed versus random models. Finally, the results fully support the relationship between accounting conservatism and firm leverage, while the relationship between accounting conservatism and liquidity is partially supported. On the other hand, the results did not support the relationship between accounting conservatism and investment efficiency as well as the relationship between accounting conservatism and firm growth.