The Influence of Ownership Structure, CEO Duality, Audit Type, Board Independence and Triple Bottom Line on Reducing the Financial Distress of Egyptian Companies: Using Z-Score Model

The study examines the impact of CG measures on corporate failure of 55 listed companies whose shares are among Egypt's 100 most actively traded shares from (2010-2018). The results can be used to identify which specific CG mechanisms (i.e., ownership structure, CEO duality, audit type, board independence) reduce corporate failure which can in return greatly contribute to the widespread awareness and implementation of these CG practices among listed companies.
Design/Methodology
The research methodology relies on using appropriate empirical and statistical analysis to test research hypothesis such as descriptive statistics, correlation analysis, path analysis and multi-group analysis using structured equation model using (AMOS), and panel least square regression analysis using E-views. Data about CG, accounting variables, and corporate failure was officially provided by the Egyptian Stock Market. The analysis used Egyptian Disclosure books, Coface Egypt Finance yearbooks and company's website provided to construct datasets.
 Findings:
The study's results indicate that there is a negative significant correlation between CG measures (top management, institutions, private sector, audit type, board independence) and corporate failure. The main enthusiasm of this study is the limited research conducted on the area of financial distress in Egypt. In addition, the  lack of research examining the usefulness of operating cash flow and Z-Score model when evaluating the financial position (failure) of Egyptian companies. First, the study documents an interaction effect of accounting variables, and CG on corporate failure which CG measures and firm accounting variables can reduce the likelihood of companies' financial distress. Also, it examines whether or not firms engage in CSR activities with a good CG system, can help to prevent companies from failure.
Keywords: Corporate Governance, Corporate Social Responsibility, Financial Distress, Z-Score Model, Developing Countries.