This paper examines the impact of gender diversity on financial reporting quality (accrual and real earnings management). We use a sample of 78 Egyptian listed companies over the period 2009–2021. The quality of financial reporting is measured using different models of earnings management (accrual and real earnings management). Accrual earnings management (AEM) is detected through four different models developed by modified Jones model, the Kasznik model, Kothari model, Raman and Shahrur model, while real earnings management (REM) is measured using six different model which are abnormal cash flows from operations (ABCFO), abnormal production costs (ABPROD), abnormal discretionary expenditures (ABDISEXP) and three aggregate proxies (RM1, RM2, RM3). Using the system generalized method of moments, companies with more gender diversity are more effective in reducing accrual earnings manipulation (AEM). The exception is the modified Jones model. Moreover, we find that gender diversity is positively and significantly correlated with financial reporting quality based on proxies of real earnings-based activity, except for RM2. The study found a non-significant and negative relationship between board diversity and RM2 as a proxy for REM. Overall, the empirical results based on accrual and real earnings management models (AEM and REM) support the notion that enterprises with more gender diversity on the board are more effective in controlling earnings manipulation practices. The predictions of corporate governance theories are confirmed. Policy makers should continue to promote and support gender diversity in leadership positions within organizations. This can be achieved through initiatives such as diversity quotas, mentoring programs, and leadership development opportunities for women.

This paper investigates the nonlinear relationship between capital structure and firm performance in the MENA region using a sample of 499 listed firms over the 2007–2020 period, or 6986 firm-year observations. Specifically, we examine the size-threshold effect in the capital structure–firm performance nexus. To do so, this study applies a dynamic panel threshold regression model (DPTR). The findings show that there is a nonlinear relationship between debt and firm performance (Tobin’s Q, ROA, and ROE). Specifically, the threshold values of firm size for the three models are estimated at 9.126 (about $1 million), 15.48 (about $5 million), and 16.816 (about $20 million), respectively, between the low- and the high-sized regimes. In the lower regime, the firm’s value (Q) increases when debt increases; however, in the higher regime, this value decreases when debt increases. Furthermore, in the lower regime, the performances (ROA and ROE) of small firms decrease when debt increases; however, in the upper regime, when debt increases, the performances of large firms increase. The results are several robustness tests. These results support the predictions of signal, pecking order, and trade-off theories. Managers of large (small) MENA firms should increase (decrease) the use of debt to improve performance.

This study investigates the relationship between institutional quality (IQ) and sustainable firm growth (SFG) in North African countries, focusing on Egypt, Morocco, and Tunisia. Utilizing panel data from 155 non‐financial firms over the period 2007–2020, we employ a system generalized method of moments (GMM) approach to analyze this relationship. Our findings reveal a significant U‐shaped relationship between IQ and SFG, indicating that both very low and very high levels of IQ are associated with limited firm growth, while an optimal level of IQ promotes substantial growth. This suggests that firms in low‐IQ environments struggle due to weak regulatory frameworks and corruption, whereas those in high‐IQ environments benefit from better governance and transparency, leading to enhanced growth. The study makes several contributions by providing empirical evidence from an underexplored region, highlighting the complex dynamics between institutional quality and firm growth, and offering robust methodological insights. Policy implications underscore the need for balanced regulation and long‐term investment in institutional quality, education, and infrastructure.

This paper analyzes the nonlinear relationship between corporate ownership structure and income manipulation through accrual-based earnings management in the Egyptian context. To do so, we develop a sample of 78 listed non-financial firms, covering the period 2008–2017. Using the dynamic panel threshold analysis approach (Seo and Shin in J Econom 195: 169–186, 2016), we found a nonlinear relationship between ownership structure and earnings manipulations. This proves the presence of an optimal ownership structure threshold below which the ownership structure generates an entrenchment effect on earnings management. However, above this threshold, the ownership structure has an alignment effect. Certainly, these results confirm the theoretical predictions in relation to managerial ownership, governmental ownership, and earnings management (agency, political and development theories, respectively). These results yield important policy implications. It is recommended to set an optimal threshold of ownership structure to control the firm`s managers. This is likely to avoid earnings management.

The aim of this study was to examine the curvilinear relationship between tangible investment and sustainable firm growth in the MENA region, as well as the moderating role of financial inclusion on this connection. To achieve this, we selected a sample of 465 firms over the period 2007–2020. Employing a system GMM model for the empirical analysis, the findings reveal that there is a curvilinear (inverted U-shaped) nexus between tangible investment and sustainable firm growth. Moreover, this study employs a moderating effect model to demonstrate that financial inclusion can enhance sustainable firm growth. The system GMM model further indicates that financial inclusion moderates the curvilinear relationship between tangible investment and sustainable firm growth. This study offers valuable insights for strategic firm planning and policy development, highlighting the role of financial inclusion in promoting firm sustainability.