Is Corporate Fundamental Analysis Transparent to Shareholders in Transitional Markets? Perspectives from Egypt

This study examines the extent to which the disclosed fundamental financial information is transparent to shareholders in Egypt's stock market. The methodology employs the partial adjustment model to compare between three cases: disclosed, undisclosed and integrated fundamental financial information. The speed of adjusting market-to-book ratio can fairly be used to examine the issue of transparency. The results show that the disclosed financial information is relatively more transparent to the shareholders than the other two cases (undisclosed and integrated). Therefore, the disclosed financial information can fairly be used in the course of fundamental analysis in the Egyptian stock market.