Financial Inclusion Disclosure, Internal Governance Quality, and Bank Ownership Structure - An Exploratory Study in Egyptian Banks

Document Type


Publication Date

Summer 8-31-2023


The purpose of this study is to investigate the effectiveness of internal governance mechanisms in enhancing financial inclusion (FI) disclosure quality in Egyptian banks. Pooled ordinary least squares (OLS) regression analysis is employed, using data from Egyptian banks listed over an eight-year period, from 2014 to 2021. Two indices are constructed: a FI disclosure quality index and an internal governance quality index. The findings of the study indicate that compliance with corporate governance best practices strengthens the monitoring quality of internal governance mechanisms in Egyptian banks. This, in turn, has a significant positive impact on the levels of FI disclosure. Results further show that ownership structure influences this relationship. Overall, the study findings support the notions of agency, stakeholders, and moral legitimacy theories. The study's originality lies in its focus on emerging FI practices in less-developed economies, and its relevance to regulators, policymakers, and professional bodies seeking to enhance FI practices and disclosures. The research also highlights the importance of the banking sector in achieving the national sustainable development goals (SDGs) by 2030 and facilitating informed decision-making by various stakeholder groups. The study's findings are supported by the robustness of the empirical analysis.