The Objective the Research: To analyzing the relationship between accounting conservatism and cash holdings and its impact on the quality of accounting profits: an empirical study on listed firms in the Egyptian Stock Exchang (EGX 50). Design and Methodology: The empirical study was conducted on a sample composed of (32) listed firms in the Egyptian Stock Exchange (EGX 50),using the content analysis method in the examining of the companies annual reports of during the period from (2016) to (2018), with a total of (96) observations, to test the research hypotheses which reflect the relationship between accounting conservatism and cash holdings and its impact on the quality of accounting profits,using a set of statistical methods are Pearson correlation coefficient and, multiple regression model. Results and Recommendations:The results of this research indicate a positive significant relationship with between the accounting conservatism and cash holdings ,Also there is positive significant relationship with between accounting conservatism,cash holdings and total accruals, which means that is negative significant relationship between accounting conservatism,cash holdings and earnings quality, On the basis of this, the researcher recommends that the Financial Supervisory Authority determining a specific level of cash holdings for companies as a conditions for registration in the Egyptian Stock Exchang and obligate the listed companies to disclose the level of cash holdings and the reasons and justifications for increasing or decreasing from this level. Authenticity and Addition: The current research provides contribution and addition a modest to the current researchs in this field by analyzing the relationship between accounting conservatism and cash holdings and its impact on the quality of accounting profits, an empirical study on listed firms in the Egyptian Stock Exchang (EGX 50). |
