The Effect of Adopting International Financial Reporting Standards (IFRS) on Stock Price Crash Risk "An Empirical Study on Egyptian Listed Companies"

The main objective of this research was to investigate the relationship between stock price crash risk and International Financial Reporting Standards (IFRS) adoption. The sample of the study included 125 nonfinancial listed companies on the Egyptian Stock Exchange during the period from 2016 to 2019. The total number of observations was 490 observation after excluding 10 observations due to incomplete data. The research results concluded a positive insignificant relationship between International Financial Reporting Standards (IFRS) adoption and stock price crash risk. The researcher recommends management of firms listed on the Egyptian Stock Exchange to increase accounting information disclosure level in the financial reports with high transparency, and increasing voluntary disclosure level in order to reduce the problem of information asymmetry, which contributes to reduce stock price crash risk. In addition, researchers to be aware of the importance of conducting further accounting studies and research on determining the determinants and effects of stock price crash risk in the Egyptian business environment.