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The Results in ancial lease ion of both ng Act (Law Asian ctors on anel Da onding auth essor f Business A ty - Giza, E @yahoo.com moud Abdel niversity Le iness Admin Cairo, Egypt @yahoo.com Publis rg/10.5296/ cific factors of EAS 49 a es Numeric Egyptian F The depende ings per sha current rat sales, finan e study use ndicate the ed fixed ass h IFRS 16 e w 176 of 20 n Journal of F n Lesso ata Ana or) Administrati Egypt aal ecturer nistration t shed: Decem ajfa.v14i2.1 s that might and the Fin cal data for Financial Re ent variable are EPS, retu io, return o ncial liabiliti ed pooled m e sales, fi sets have a equivalent o 18). The da Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro or Finan alysis) ion mber 1, 202 18956 t have an im nancial Leas r five years egulatory A is the firm f turn on equi on assets RO ies, EBIT/o model, fixe inancial lia an effect o of EAS 49 ata is accur ccounting 946-052X 14, No. 2 think.org/ ncial 2 mpact on sing and s during Authority financial ity ROE, OA, and operating ed effect abilities, n lessor and the rate and complet This st perform 2018). creditor Keywo te. The leng tudy tries t mance after a Thus, this rs, lessors, a rds: firm sp gth of the s to identify application study is a and lessees. pecific facto study period the impact of EAS 49 a a modest co ors, firm per 16 d makes it p t of some and Financi ontribution rformance, Asian possible to firm specif ial Leasing to better d lessor, Egy n Journal of F track progr fic factors o and Factorin decision ma pt Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro ress of lesso on lessor f ing Act (Law aking of in ccounting 946-052X 14, No. 2 think.org/ or firms. financial w 176 of nvestors, 1. Intro 1.1 Intr The pur and the the leas treatme financia the fina and reg During and Fac activity lessee f a contr ownersh asset in a specif lessor i natural the fina The firm worth i impact presents results. 1.2 Lite Standar recordin main re Accoun paper p lessee. ‘‘right-o the IAS Accoun differen sheet). contract IFRS 16 in the oduction roduction rpose of issu Financial L se contracts ents properly al leasing a ancial leasin gulations con 2018, the E ctoring Act y. Financial for a specifi ract. The l hip of the le n economic fied rent. T is the entity or legal per ancial lease m's financia investigatin specifically s the hypoth The study p erature Revi rd setting b ng lease tran esult of th nting Stand ublished on On August of-use’’ mod SB issued nting Stand ntiate betwe However, ts on the b 6 “Leases” financial s uing IFRS 1 Leasing and s. In additio y to avoid o and factorin ng, as well a ntrolling the Egyptian Fi (Law 176 o Leasing gr ied period in essor and eased asset activities, s The Financia y that is lic rson that ha contract. al performa ng firm spec y on lessor hesis. The s presents a d iew odies, for s nsactions to he Financia dards Boar n March 19 t 2010, the del for the r IFRS 16 dard IAS 17 een an oper the new ac balance shee ensures tha statements. 16 and its co d Factoring A on, IFRS m ff balance s ng activities as, prime mi e activities o inancial Reg of 2018). Th rants the les n return for the lessee to the owne service activ al Leasing a ensed to en as the right ance influen cific factor financial pe tudy presen discussion. T some time n o bring the al Accounti rd IASB 2009 that i FASB and realization o ”Leases” e 7. The pro rating lease ccounting m et (except f at the busine This lead 17 orrespondin Act (Law 17 makes sure th sheet record s. It superse minister rulin of the facto gulatory Au his law sta ssor the rig lease paym write a c ership of the vities or pro and Factorin ngage in fin to possess nces the stre rs and ident erformance nts the meth The study w now, have b majority of ing Standar joint proje included a l the IASB of lease-rela effective as ovisions of (off balanc model oblig for short-ra ess firms re ds to more Asian ng Egyptian 76 of 2018) hat the less ding. Law nu edes law nu ng number 1 oring. uthority FRA ates that Fin ght to posse ments in acc ontract stat e lessee. Th oduction ac ng Act (Law nancial leas and use the ength of the tifying thos . This study hodology. Th wraps up wit been delibe f leases on- rds Board ect was t leasing proj delivered a ated liabiliti s of year 2 IAS 17 L ce sheet) an ges the less ange leases cord all of t e transparen n Journal of F n Accountin was to incr sor firms ap umber 176 y umber 95 ye 1446 year 2 A issued th nancial Lea ess and use ordance wit ting that th he intension tivities for w 176 of 20 sing activity e leased ass e country ec se factors t y reviews re he study pre th the concl erating on th -balance she FASB and the drafting ject for both an exposure ies and asse 2019 to rep eases oblig nd a finance see to iden and inexpe the leases an nt, accurate Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro ng Standard rease the nu pply the acc year 2018 r ear 1995 re 2003 related he Financial asing is a fi a leased as th the provi he lessor t n is to use th a certain pe 018), states y. The lesse set in accord conomy. Th that might elated literat esents the st lusion. the best me eet for less d the Inter g of a dis h the lessor e draft sugg ets. Finally, place Inter gated the le e lease (on ntify majori ensive asse and in the sa te and com ccounting 946-052X 14, No. 2 think.org/ EAS 49 umber of counting regulates elated to d to rules Leasing inancing sset to a isions of transfers he leased eriod for that the ee is the dance to hus, it is have an ture then tatistical thod for ees. The rnational scussion r and the gesting a in 2016, rnational essee to balance ity lease ets). The ame way mparable informa expecte The fol benefit that, co matter t has a vi states th the sha busines to help between agent an the shar of maki parties d Studies The eco supplier their co how hig the com Nasser Air Ara quarter and rela gross pr assets fr There is debt rat Maali ( compan Qatar A Capitali standard in the li and Deb Öztürk Turkey lease st ation. After ed. llowing star the shareho ome the sele that justify ital part in th hat a purpos areholders ( ss firms, esp explain co n sharehold nd principa reholders an ing the most drive the sta prove firm onomy of s rs and cust ounterparts, ghly influen mpany the m & Alrashed abia after ap ended Marc ated ratios w rofit, revenu from operati an increase tio and debt 2018), anal nies (Emirat Airways) f ization App d will cons iabilities an bt to Equity & Serçem and the inf tandard. Ou r examining rts with a p olders. Thes ected observ the concep he determin se of financ (Watts & Z pecially for l ommon age ders and ma l. Therefore nd the mana t of persona andard sette m size and fi scale concep tomers, gen and retainin ntial big com more reliable dy (2022) ex pplying IFR ch 31, 2019 with those o ues, current ions. Results in return on t to equity ra lyze the resu tes Airlines financial re proach is us iderably inf nd assets of y ratios. meli (2016) fluence of t utcomes sho g firm cash presentation se theories a vations and pts. The Pos nation of stan ial reporting Zimmerman, large size fir ency theory anagers, as e, it is clear agement of b al benefits (W ers to presen irm growth pt confirms nerating and ng better pri mpanies are e its public i xplore the ou RS 16. The 9. The study of the quart assets, curr s also show a n equity, curr atio. ult of imple , Royal Jor eports as w sed. The fin fluence the these comp take a clos the variatio ow operating 18 h flow, no n of a coupl are the agen d findings of sitive Acco ndards (Wa g is to force , 1978). Ac rms, to appl y problems well as, the that the acc business fir Watts & Zim nt new stan opportuniti s that big co d withstand rices than th e over smal information utcomes of study inves y compares a ter ended Se rent liabiliti a fall in net rrent ratio, a ementing th rdanian, Air well as bas ndings show Middle Ea panies with a se look at on in the rel g leases inc Asian change to le of theori ncy theory f previous l unting Theo tts & Zimm e manageme ccordingly, ly new and i associated e diverse ap counting sta rms especial mmerman, dards, speci ies as signi ompanies ar ding strateg he competiti ll companie n. f the financia stigates fina and changes eptember 30 es, net incom change of, and return on he new lease r Arabia, Tu sic financia w applicatio ast aviation a significan the balance lated ratios creases liabi n Journal of F the value es to make and econom literature re ory propose merman, 197 ent to opera it is extrem improved ac d with the pproaches t andard sette lly large siz 1978). In tu ifically for l ficant deter re capable o ic expansio ve level. Th es. This imp al performa ancial statem s financial s 0, 2018. Re me, cash, to EPS, total l n assets wh e standard o urkish Airlin al ratios. C on of the IF business. T nt impact on e sheet of t after the ad ilities and a Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro of the com manageme mies of scal elated to the es that mana 78). This the ate for the be mely impor ccounting st conflict of towards risk ers are press ze ones with urn, these be leasing IFR rminants of of negotiati on, competi his theory d plies that th ance of the E ments for th statements e esults show otal equity, a liabilities, a hereas, a dec on six majo nes, Oman Constructive FRS 16 new There is an n the Debt to the lessee doption of assets with ccounting 946-052X 14, No. 2 think.org/ mpany is ent act to le. After e subject agement eory also enefit of rtant for tandards interest k by the sured by h the aim enefiting RS 16. f leasing. ing with ing with describes e bigger Egyptian he fourth elements a rise in and total and cash. crease in or airline Air, and e Lease w Lease increase o Assets firms in the new a rise in the debt De Fari new lea industry operatin the Toro Results affects f Park & account 2001-20 adoptio register well as Joubert ratios o from pu 2015-20 near fut influenc there is Zamora of adop reveal th coverag exampl consiste Park & debt an Korea. during corpora amount credit r listed c choose Magli e and the Results liabilitie t/asset ratio ia Olivo et. ase standard y because t ng lease. Th onto, Sydne infer abno firm value. & Na (2017) ting. The K 013 equival on of operati red firms. Th profiting fro et. al. (201 of main firm ublic financ 016. In add ture compan ce return on no compan a-Ramírez & pting the IF hat total ass ge ratio wil e retail, pro ent results r Na (2018) nd credit ra The study c 2001-2013 ate credit ra t than firms ratings beca ompanies, t operating le et. al. (2018 e financial l indicate th es and leas o and a fall i . al. (2022) d affected fi there is he he study inv ey, and Lon ormal return ) inspects h Korean firms lent to 7,023 ing leases. P hus, private om off-bala 17) examine ms in the avi cial reports dition, the st ny financia n assets RO ny heading t & Morales- RS 16 on th sets and liab ll decrease ofessional s related to pr ) inspects th atings for 6 collects num . Outcomes atings. But, s that emplo ause of the there is no eases over c ) analyses th everage of hat in the ba e assets. In in the Retur under take irm value. eavy use of m vestigated d ndon stock ns variation how the firm s record eith 3 firm-year Private firm e firms favor ance sheet fi es the poten iation and te of firms r tudy exami l distress. O OA and debt to a differen Díaz (2018 he financia bilities, as w except for services, m rofitability. he influence 6133 listed merical data s prove lea , enterprise oy capital l listing statu difference capital lease he effect of different in alance sheet n the income 19 rn on Asset e an event s This study movable as data from th exchanges n. This ind m listing po ther a capita r observation ms have a hig r using oper inancing, in ntial impact elecommun registered o ines the Alt Outcomes re t to equity nt Z score ra 8) perform a al statement well as, lever r those indu media and h e of operati and non-lis a from fina ase choice d es that impl leases. Resu us of the b due to leas es experienc f applying (I nstitutions li t, there is a e statement Asian ROA ratio. study to ide y focuses on sets that re e financial for year 20 dicates that osition affec al or an ope ns. Finding gher ratio of rating leases n contrast to t that the IF nication segm n the Austr tman Z scor eveal inclus D/E ratios. ange. an empirica s of quoted rage ratios w ustries with hotels. The ing lease an sted local f ancial statem does not ha lement ope ults also co business firm se selection ce a drop in IFRS 16) Le isted in the decrease in t, there is a n Journal of F entify if the n the evalua equires the reports of 1 016 and yea the adoptio cts the firm' erating lease s show priv f operating l s to escape r publicly reg FRS has on ments. The ralian Stock re results fo sion of addi Altman Z al analysis to d Spanish co will increase h increased results of t nd capital le firms that r ments for a ave conside rating lease nvey there m. As for th . However, n their cost o eases, on th Italian bus n equity, and an increase Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro e applicatio ation of the use of ren 1002 firms l ar 2019 sep on of the I 's adoption e during th vate firms se leases than rising debt l gistered bus n the basic f study acqui k Exchange or the predi itional lease score resul o identify th ompanies. F e. However, d lease volu the study fo ease on the recognize l period of 1 erable influ es spend a is no diffe the cost of unlisted fir of debt. he firm perfo siness envir d a rise in f in Earnings ccounting 946-052X 14, No. 2 think.org/ on of the e mining ntal and listed on parately. IFRS 16 of lease e period elect the publicly levels as sinesses. financial ires data e during iction of ed items ts imply he effect Findings , interest ume, for ound no e cost of eases in 13 years uence on smaller rence in debt for rms that ormance ronment. financial s Before Interest Susanti lease ac Financi an airlin level of of asset Cash F (ROE) i Singh ( Americ operatin relation debt. Biondi account measure impact recogni Sliwosk 2016–0 of the sheet fin Knubley project the rele also out propose the bala Bunea-B draw a stateme Chatfie USA. R amount Gibson reported credit r signific t Tax Depre et. al. (202 ccounting st ial Accounti ne company f profitabilit ts drop. How Flow from O increase. (2013) exa can restaura ng leases ar n between le et. al. (20 ting. The s ement and of lease a ition and inc ki (2017) p 02. The stu ese rules nancing. y (2010) d and its addi ease of the A tlines the p ed changes d ance sheet li Bontaş (20 attention to ents. ld et. al. (20 Results indic ted to 51% o (2021) pro d financial risk, resourc cant change ciation and 21) made a tandard IFR ing Standar y in Indones ty represent wever, the Operations amines the ant and retai re completel easing and d 011) discuss study comm reassessme accounting come measu provides a g udy also pr prohibits distinctly cla ition to the I August 201 proposed app described re iabilities an 17) from R the effect 017) analyz cate that ho of their asse oved that b data and fi ce efficienc es. Firms w Amortizatio case-study RS 16 corres rds Board o sia that heav ed by return liquidity rat CFO and t relationship il firms dur ly measured debt. This m ses the situ ments on t ent at fair v elements o urement. general disc rovides a m s lessees arifies the j IASB and FA 10 exposure proach to le equire by th nd assets. Romania dis ts of the n zes the off-b ospitality co ets in 2015. by applying financial per cy, liquidity with operatin 20 on EBITDA to determin sponding to on the financ vily utilizes n on assets ( tio represen the profitab p between ring the per d. Results sh means that $ uation of the the definiti values, clas on accountin cussion on more focuse from u justification FASB joint p e draft sugg essor and le he new lease cusses the new accou balance shee ompanies do g IFRS 16 L rformance y, and finan ng leases d Asian A and financ ne the influe PSAK 73 L cial stateme lease finan (ROA), solv nted by Inte bility repres the lease a riod 2006 – how that th $1.00 of lea e proposed ion of a l ssification o ng ratios, im the new le ed discussio using leas ns behind t project agen gesting a "ri essee accou e standard e contrast bet nting mode et leases by o extensive Leases, ther metrics tha ncial leverag demonstrate n Journal of F ce costs. ence of the a Leases issue ents and key ncing. The re vency, and e erest Covera sented by th and debt in 2008. Both ere is a sign asing displac exposure d ease, accou of lease ac mpact of le ease accoun on for how es to ob the proposi nda in July 2 ight-of-use" unting. Find enforce the a tween IAS el on a co y the hospita ly use oper re are mea at measure ge. The stu ed more vo Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro adoption of ed by the Ind y financial r esults show efficiency in rage Ratio I he return on n a sample h capital lea nificant and ced nearly draft towar unting for ccounting el ease accoun nting rules w implem obtain off- ition of the 2006 that res " model. Th dings prove acknowledg 17 and IFR ompany’s f ality industr rating leases asurable cha firms’ prof udy results r olatility in f ccounting 946-052X 14, No. 2 think.org/ f the new donesian ratios of w that the n the use ICR and n equity of 233 ases and d inverse $0.50 of rds lease lessors, lements, nting on in ASU mentation f-balance e leasing sulted in his study that the gment of RS 16 to financial ry in the s, which anges in fitability, revealed financial perform Tóth (2 on liste the appl Secinar the fina made co The stu USA, C Oman, aviation heavily IFRS 1 the fina conside This stu after th Factorin EBIT/o perform asset tu total de 1.3 Hyp It is ev nationa on hand H1 there applicat and Fac H0 there the app Leasing 2. Meth This stu country sectiona control and tim mance. Asse 018) discus d Hungaria lication of I ro et. al. (20 ancial statem onfirm the a udies presen Canada, Eng and Qatar. n, mining, depend on 6 (Leases) ancial perfo eration if the udy evaluat he applicatio ng Act (Law operating pr mance repres urn over, ret bt/total asse pothesis vident that lly and inte d proposes t e is a signifi tion of both ctoring Act e is no sign plication of g and Factor hod udy uses pa y and firm al of firms for heterog me series me t efficiency sses the app an entities. A IFRS 16 ma 020) investig ments of It adoption of nted above gland, Austr . Studies ar telecommu n leasing. significantl ormance rati e company i tes the impa on of EAS w 176 of 2 rofit or lo sents (total turn on cap ets) the studie ernationally the followin icant impact h the IFRS 1 (Law 176 o nificant impa both the IF ring Act (La anel data a effects. Pa during sev geneity in a ethods (Balt y and profita lication of I According t ay have sign gates the re talian small f IFRS 16 ha took place ralia, Spain, re available unication, m The studies y impact th ios. Howev is a lessor or act of some 49, equival 2018). The ss, and fin debt/total e pital employ s made co are rare. Ac ng hypothes t of firm spe 16 equivalen of 2018). act of firm FRS 16 equ aw 176 of 2 approach to anel (longitu veral period addition to t agi, 2008). 21 ability decre IFRS16 (Le to the resul nificant effe epresentatio l and mediu as a substan in differen , Korea, Ind e related to media, retai s above una he balance s ver, results h r a lessee, in e firm speci lent of the firm specif nancial lea equity, earni yed ROCE, oncerning th ccording to sis: ecific factor nt of the EA specific fac uivalent of 2018). accommod udinal) dat ds (Baltagi time invaria Asian ease. Financ eases), effec ts of the stu ect on the le n of change um enterpri ntial effect o nt business e donesia, Hun o different il, hotel, an animously sheet assets have to be in n addition to fic factors o IFRS 16, a fic factors a ased fixed ings per sha current rat he account the results rs on lessor AS 49 and t ctors on less the EAS 4 date inconsi a is poolin , 2013). Pa ant variable n Journal of F cial leverage ctive as of 2 udy, expecta ase market. e in the acco ises. Resu on the balan environmen ngary, Emir business s nd restaura agree that t s and the lia nterpreted c o, the differe on lessor fin and the Fin are (sales, f assets). Th are EPS, retu io, return o ing treatme of the abov financial pe he Egyptian sor financia 49 and the istencies in ng of observ anel data a es not proba Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro e increased 2019, and its ations are h . ounting of l ults of a cas nce sheet. nts in Italy, rates, Egypt sectors such ant sectors the adoptio abilities, as carefully tak ent business nancial perfo nancial Leas financial lia he lessor f urn on equi on assets RO ents for th ve studies, th erformance n Financial al performan Egyptian F n unnoticed rvations on approach is able cross s ccounting 946-052X 14, No. 2 think.org/ . s impact high that leases in se study Turkey, t, Jordan, h as the that all n of the well as, king into s sectors. formance sing and abilities, financial ty ROE, OA, and e lessor he study after the Leasing nce after Financial distinct a cross able to sectional The stu applicat Factorin reports FRA. T The dep firm spe assets], EBIT/c current assets], liability current The stu accomp yit: depe αoi: fixe βit Xit: in Eit: rand The stu - Poo - Fix - Com - Ran - Com The pur Effect M after ap The ind or loss, y2 retur capital equity. It is wo udy uses dat tion of the ng Act (Law of 10 non-f The sample o pendent var ecific facto return on a apital empl ratio [curr return on y/equity]. T liabilities], udy used th panied by th endent varia ed term for s ndependent dom error udy follows oled Model xed Effect M mparison of ndom Effec mparison of rpose was t Model best pplication of dependent v x4 financia rn on equity employed R orth noting t a for 5 year EAS 49 c w 176 of 201 financial in of the study riable is the ors. The dep assets ROA oyed (net as rent assets/c equity RO The indepen EBIT/ oper he pooled m he panel dat able, accom sample i t variable an five steps: , Model, f Pooled M ct Model, f Random E to specify w indicates th f EAS 49 an variables rep al leased fix y ROE, y3 r ROCE, y6 that the F-T rs during the correspondin 18). The stu nstitutions li y is equivale firm financ pendent vari [= net incom ssets = total current liab OE [= net ndent variab rating profit model, the a approach. mpanied by u nd slope odel and Fix Effects Mod which of th he effect of t nd Financia present x1 sa xed assets. T return on as current rati Test compar 22 e period 20 ng to the I udy evaluate isted in the ent to 50 firm cial perform iable is rep me/total ass l assets – cu bilities], tot income/eq bles are sal t or loss, fin fixed effec . The found unit i, over xed Effect M del and Fixe he Pooled M the indepen al Leasing an ales, x2 fina The depend ssets ROA, io, y7 total res the Pool Asian 16-2020 tha IFRS 16 an es public nu Egyptian F m year obse mance. The in resented by sets], return urrent liabili tal debt/tota quity], and les, financia nancial leas ct model, a ation is: period t Model, ed Effect M Model, Fixe ndent variab nd Factorin ancial liabil dent variable y4 earning l debt/total led Model a n Journal of F at signifies b nd the Fina umerical dat Financial Re ervations. ndependent y: asset turn on capital e ities)], earni al assets [t total debt/ al liabilities ed fixed ass and the ran yit = αoi + β odel using t ed Effect M bles on the d g Act (Law lities, x3 EB es represent gs per share assets, and and the Fixe Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro before and ancial Leas ta from the f egulatory A t variables a n over [= sa employed R nings per sha total liabilit t/total equit s [total liab sets ndom effec βit Xit + Eit the Hausma Model, and R dependent v w 176 of 201 BIT/operatin t y1 asset tu e EPS, y5 r d y8 total d ed Effect M ccounting 946-052X 14, No. 2 think.org/ after the sing and financial Authority are some ales/total ROCE [= are EPS, ties/total ty [total bilities – ct model (1) an Test Random variables 18). ng profit urn over, eturn on debt/total Model. If the resu One: wh Two: w Three: w Four: w Five: w Six: wh Seven: Eight: w 3. Resu The fol and ind Table 1 Independe Constant X1 X2 X3 X4 P-v F-test & H The stu F-test: t check is Hausma ults show th hen the dep when the dep when the de when the dep when the dep hen the depe when the de when the de ults llowing is a dependent va . Dependen ent variables F value R2 Hausman te udy compare to distinguis s significan an test: to d he Pooled M pendent vari pendent vari ependent va pendent var pendent vari endent varia ependent va ependent var a presentatio ariables. nt Variable y s Po Coeffic 0.2473 0.0002 -0.0000 -0.0724 -0.0000 st es the three sh between nt (F = 2.898 distinguish b Model is the iable is y1 a iable is y2 a ariable is y3 riable is y4 a iable is y5 a able is y6 an ariable is y7 riable is y8 on of the st y1 oled model cient P-va 352 0.0 277 0.0 087 0.0 486 0.1 001 0.9 5.906 0.000 0.383 F 2.898 models usin the pooled 8, p < 0.05), between the 23 best, then s and the inde and the inde 3 and the ind and the inde and the inde nd the indep 7 and the ind and the ind tatistical re Fix alue Coef 000 0.29 000 0.00 002 -0.0 01 -0.1 940 -0.0 F-test ng two tests model and , inferring th e random e Asian stop. Otherw ependent var ependent va dependent v ependent va ependent va pendent var dependent v dependent v esults for th xed effects m fficient P- 95866 0 00445 0 00079 0 84046 0 00023 0 4.640 0.000 0.675 P-value 0.014 χ2 7.404 s: the fixed ef hat the fixe effect model n Journal of F wise, go to s riables are x ariables are x variables are ariables are ariables are x iables are x variables are ariables are he evaluatio model R -value C 0.000 0 0.000 0 0.014 - 0.035 - 0.105 - Hausman ffects mode d effects mo l and fixed Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro step four. x1, x2, x3, a x1, x2, x3, e x1, x2, x3 x1, x2, x3, x1, x2, x3, x1, x2, x3, a e x1, x2, x3 e x1, x2, x3, on of the de Random effe Coefficient 0.250913 0.000338 0.000085 0.089837 0.000012 7.14 0.00 0.42 n test P-val 0.11 el. The resul odel is pref effects mo ccounting 946-052X 14, No. 2 think.org/ and x4 and x4 , and x4 and x4 and x4 and x4 3, and x4 , and x4 ependent ects model P-value 0.000 0.000 0.001 0.085 0.345 48 00 29 lue 6 lt of this ferred. del. The result o model i Based o The res The ov determi of the v Accord a signif insignif The coe x1 by E coeffici the x2 b Table 2 Independe Constant X1 X2 X3 X4 P-v F-test & H The stu F-test: t check is Hausma The res model i of this chec is better. on the previ ults of this verall regres ination (R2) variance in t ing to the e ficance on y ficant effect efficient of x EGP 1 y1 i ient of x2 h by EGP 1 y . Dependen ent variables F value R2 Hausman te udy compare to distinguis s significan an test: to d ult of this c is better. k is non-sig ious e.g. Tab model are a ssion mode ) is 0.429, i the depende .g. Table 1 r y1. Howeve t on y1. x1 has a dir increases, o has an indire 1 decreases nt Variable y s Po Coeffic 0.252 0.000 0.000 -0.055 -0.000 0 st 4 es the three sh between nt (F = 4.713 distinguish b check is non gnificant (χ ble 1 results as follows: el is signifi .e. the indep ent variable results, only er, x3 (0.08 rect effect a overall, by ect effect an , on average y2 oled model cient P-va 2716 0.0 0334 0.2 0146 0.2 5916 0.7 0110 0.0 1.345 0.270 0.124071 F 4.713639 models usin the pooled 3639, p < 0. between the n-significant 24 χ2 = 7.404, s, the appro cant (F = pendent var (y1). y x1 (0.000 851) and x4 and is equal 0.000338, nd is equal e, by 8.57E Fix alue Coef 0970 0.5 2678 -0.0 2097 3.7 7634 -0.0 0772 -3.8 5630 0960 F-test ng two tests model and .05), indicat e fixed effe t (χ2 = 2.41 Asian p > 0.05), opriate mode 7.148, p < riables (x1, 0) and x2 (0 (0.3451) h to 0.00033 supposing to -8.57E-0 -05, assumi xed effects m fficient P- 522356 0 000399 0 74E-05 0 064813 0 86E-05 0 4.0 0.0 0.644344 P-value 0.0007 χ2 2.4 s: the fixed ef ting that the ects model a 1391, p > 0 n Journal of F indicating el is the ran 0.05), and x2, x3 and 0.0012) hav have p > 0.0 8. So, for ev the x2, x3, 05. Thus, fo ing the x1, x model R -value C 0.0679 0.3183 0.7456 0.8375 0.4744 041495 000854 4 Hausman 411391 ffects mode e fixed effec and the rand .05), indicat Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro the random ndom effects d the coeffi d x4) explain ve p < 0.05 05 that indi very increa , x4 are fix or every inc x3, x4 are fi Random effe Coefficient 0.385204 -7.49E-05 0.000103 -0.019758 -6.66E-05 n test P-val 0.660 el. The resul cts model is dom effects ating random ccounting 946-052X 14, No. 2 think.org/ m effects s model. icient of n 42.9% assumes cates an se in the xed. The crease in fixed. ects model P-value 0.0929 0.8165 0.3111 0.9372 0.1916 0.898846 0.474257 0.086437 lue 06 lt of this s better. s model. m effects Accord is non-s P-value x4 (0.19 Based o The res The ov coeffici Table 3 Independe Constant X1 X2 X3 X4 P-v F-test & H The stu F-test: signific Hausma this che better. Accord F-statist equal to x1 (0.77 Based o The res ing to e.g. T significant. e of the F te 916) individ on the previ ults of this verall regres ient of deter . Dependen ent variables F value R2 Hausman te udy compare compare b cant (F = 24 an test: dist eck is non- ing to e.g. tics (p = 0. o 0.140872 737), x2 (0. on the previ ults of this Table 2 abo The R-squ est for each dually. ious e.g. Tab model are a ssion mode rmination (R nt Variable y s Po Coeffic 4.748 -0.008 -0.004 17.34 0.000 0 st 24 es the three between po 4.663458, p inguishes b significant Table 3 ab .271434) p subsequent 3436), x3 ( ious e.g. Tab model are a ove, F-statis uare equals independen ble 2 results as follows: l is signific R2) equal 8. y3 oled model cient P-va 8137 0.3 8819 0.3 4910 0.2 4003 0.0 0219 0.9 2.851 0.039 0.256834 F 44.663458 models usin ooled mode p < 0.05), in etween rand (χ2 = 4.756 bove that re > 0.05. So t to 14%. Th 0.1753), x4 ble 3 results as follows: 25 stics (p = 0.4 0.086437 c nt variable a s, the appro cant (F = 0 .6%. Fix alue Coef 3634 9.5 3896 0.0 2204 0.0 0105 -2.7 9228 0.0 1150 9090 F-test ng two tests el and fixe ndicating th dom effects 6123, p > 0 epresent the o, the whole he P-value 4 (0.3294) in s, the appro Asian 474257) p > correspondin are x1 (0.81 opriate mode 0.898846, p xed effects m fficient P- 507359 0 001121 0 000774 0 712163 0 000305 0 22 0.0 0.991987 P-value 0 χ2 4.7 s: ed effects m at fixed effe s model and 0.05), indica e outcomes e model is of F test of ndividually. opriate mode n Journal of F > 0.05. Thu ng to 8.6%. 165), x2 (0. el is the ran p > 0.05) no model R -value C 0.0000 0.6533 0.2842 0.1528 0.3716 8.5579 000000 0.0000 Hausman 756123 model. Res ects model i d fixed effec ating rando of the rand non-signific f each indep el is the ran Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro us, the whol . The result 3111), x3 ( ndom effects non-significa Random effe Coefficient 11.89553 0.000708 0.000674 -2.527432 0.000330 n test P-val 0.313 sult of this is better. cts model. R om effects m dom effects cant. The R pendent vari ndom effects ccounting 946-052X 14, No. 2 think.org/ le model ts of the 0.9372), s model. ant. The ects model P-value 0.0290 0.7737 0.3436 0.1753 0.3294 1.352764 0.271434 0.140872 lue 32 s test is Result of model is s model, R-square iable are s model. The ov coeffici Table 4 Independe Constant X1 X2 X3 X4 P-v F-test & H The stu F-test: signific Hausma Outcom is better Based o The res 5.92339 variable Accord x1 (p > (p < 0. 0.04243 assumin -4.63E- the x1, verall regres ient of deter . Dependen ent variables F value R2 Hausman te udy compare to distingu cance (F = 5 an test: to mes show no r. on previous sults of this 96, p < 0.05 es (x1, x2, x ing to the e 0.05) and x 05) show s 39. In turn, ng the x1, x -06. So, whe x2, x3 are f ssion mode rmination (R nt Variable y s Po Coeffic 0.015 1.30E -2.24E 0.040 -4.64E 0 st 8 es the three uish amon 5.923396, p distinguish on-significa s e.g. Table s model are 5), and coe x3 and x4) e .g. Table 4 r x2 (p > 0.05 significance when x3 in x2, x4 are fi en x4 increa fixed. l is signific R2) equal 14 y4 oled model cient P-va 5436 0.0 E-05 0.3 E-06 0.7 0054 0.0 E-07 0.8 5.507 0.001 0.366992 F 8.689996 models usin ng pooled < 0.05), ind h between ance (χ2 = 8 e 4 results, e as follow fficient of d explain 38.4 results, x1 ( 5) imply non e on y4. Th creases by E ixed. The co ases by EGP 26 cant (F = 1 4%. Fix alue Coef 0490 0.0 3963 3.8 7042 5.0 0001 0.0 8813 -6.2 7711 1344 F-test ng two tests model and dicating tha random e 8.980611, p the appropr ws: The ove determinati 4% of the va (0.0542), x2 n- significan he x3 coeffi EGP 1 there oefficient o P 1 y4 decre Asian 1.352764, p xed effects m fficient P- 004025 0 82E-05 0 07E-06 0 045844 0 26E-06 0 10 0.0 0.828773 P-value 0 χ2 8.9 s: d fixed eff at fixed effec effects mod > 0.05), ind riate model erall regress on (R2) is 0 ariance in th 2 (0.6415), x nce on y4. H ficient has a e is an overa of x4 has an eases -on av n Journal of F p > 0.05) no model R -value C 0.7285 0.0269 0.2953 0.0015 0.0086 .79738 000000 0.0000 Hausman 980611 ffects mode cts model is del and fix dicating ran l is the rand sion model 0.384053, i he dependen x3 (0.0001) However, x a direct effe all increase n indirect ef verage- by 4 Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro non-significa Random effe Coefficient 0.011615 2.54E-05 1.93E-06 0.042439 -4.63E-06 n test P-val 0.061 el. Results s better. xed effects ndom effect dom effects is significa i.e. the inde nt variable ), x4 (0.030 x3 (p < 0.05 fect and is in y4 by 0. ffect and is 4.63E-06, a ccounting 946-052X 14, No. 2 think.org/ ant. The ects model P-value 0.1820 0.0542 0.6415 0.0001 0.0307 5.923396 0.000832 0.384053 lue 16 are of model. ts model s model. ant (F = ependent (y4). 7) ) and x4 equal to 042439, equal to ssuming Table 5 Independe Constant X1 X2 X3 X4 P-v F-test & H Accord result o model i The res 4.72480 and x4) Accord signific indepen (p >0.0 effect a decreas and is e increase . Dependen ent variables F value R2 Hausman te ing to e.g. T of this chec is better. In sults of this 03, p < 0.05 ) independen ing to e.g. cant. The re ndent variab 05) and x4 and is equal ses by 0.000 equal to 0.0 e in y5 by 0 nt Variable y s Po Coeffic 0.573 -0.000 0.000 0.421 -0.000 0 st 1 Table 4 F-te ck is non-si relation to p s model are 5), and the c nt variables Table 5 the esults x1 (0. bles x1 (p (p >0.05) h l to -0.0007 0754, assum 000302. Thi 0.000302, as y5 oled model cient P-va 3330 0.0 0754 0.0 0302 0.0 1389 0.0 0124 0.0 4.724 0.003 0.332152 F 1.028045 est: to distin gnificant (F previous ou e as follow coefficient o s explain 33 e F-statistics .0375), x2 ( <0.05) and have non-si 754. This m ming x2, x3, is explains t ssuming x1, 27 Fix alue Coef 0022 0.3 0375 -0.0 0314 0.0 0597 0.3 0904 -0.0 4803 3411 F-test nguish betw F = 1.02804 utcomes, the ws: The ove of determin 3.2% of the s (p=0.0034 (0.0314), x3 d x2 (p <0 ignificance means for e , x4 are fixe that whenev , x3, x4 are Asian xed effects m fficient P- 394811 0 000770 0 000526 0 357579 0 000124 0 2.1 0.0 0.493690 P-value 0.4419 χ2 7.0 een pooled 45, p > 0.0 e appropriat erall regress ation (R2) i variance in 411) so p<0 3 (0.0597), 0.05) have on y5. T every increa ed. The coe ver x2 incre fixed. n Journal of F model R -value C 0.3799 0.2332 0.0076 0.4835 0.1585 175165 040106 0 Hausman 038992 model and 05), indicati te model is t sion model s 0.332152, the depend 0.05. Thus, x4 (0.0904 significance The x1 coef ase in the x efficient of x eases EGP Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro Random effe Coefficient 0.573330 -0.000754 0.000302 0.421389 -0.000124 0.3321 n test P-val 0.133 fixed effect ing that the the pooled m is significa , i.e. the (x1 dent variable the entire m 4) individua e on y5, w fficient has x1 by EGP1 x2 has dire 1 there is a ccounting 946-052X 14, No. 2 think.org/ ects model P-value 0.0022 0.0370 0.0309 0.0589 0.0893 4.724803 0.003411 152 lue 38 ts model, e pooled model. ant (F = 1, x2, x3 e (y5). model is ally. The while x3 indirect 1 the y5 ect effect a general Table 6 Independe Constant X1 X2 X3 X4 P-v F-test & H The stu F-test: signific Hausma prove n better. Based o The coe and x4) Accord individu non-sig direct e is an inc . Dependen ent variables F value R2 Hausman te udy compare to distingu cance (F = 4 an test: to d non-signific on previous efficient of ) explain 14 ing to the ually. The x gnificance o effect and is crease in y6 nt Variable y s Po Coeffic 0.027 3.69E -5.12E 0.023 -1.90E 0 st 4 es the three uishes betw 48.975328, p differentiate cance (χ2 = e.g. Table 6 determinat 4.2% of the v e.g. Table x1 (p > 0.05 on y6, while s equal to 0. 6 with an ov y6 oled model cient P-va 7153 0.1 E-06 0.9 E-06 0.7 3770 0.3 E-06 0.8 0.253 0.905 0.026008 F 48.975328 models usin ween pooled p < 0.05), in between ra 0.650879, 6 results, th ion (R2) is variance in 6 results, x 5), x2 (p > e x3 (p < 0. .037615. Th verall value 28 Fix alue Coef 1926 0.0 9287 1.7 7477 -5.8 3557 0.0 8209 -2.5 3670 5625 F-test ng two tests d model an ndicating th andom effec p > 0.05), he appropria 0.142459, the depend x1 (0.4703) 0.05), and .05) has a s his shows th of 0.03761 Asian xed effects m fficient P- 007561 0 73E-05 0 88E-07 0 038812 0 54E-06 0 34 0.0 0.939874 P-value 0 χ2 0.6 s: nd fixed ef hat fixed eff cts model an indicating ate model is i.e. the inde dent variable ), x2 (0.842 x4 (p > 0.0 ignificance hat whenev 5, assuming n Journal of F model R -value C 0.6133 0.4183 0.9243 0.0285 0.3828 .87092 000000 4 0.0000 Hausman 650879 ffects mode fects model nd fixed effe that random the fixed ef ependent va e (y6). 21), x3 (0.0 05) independ on y6. The er x3 increa g x1, x2, x4 Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro Random effe Coefficient 0.021593 1.50E-05 -1.21E-06 0.037615 -2.40E-06 0.1424 n test P-val 0.957 el. Results is better. fects model. m effects m ffect model ariables (x1 0277), x4 ( dent variab e x3 coeffic ases by EGP 4 are fixed. ccounting 946-052X 14, No. 2 think.org/ ects model P-value 0.4099 0.4703 0.8421 0.0277 0.4029 1.578192 0.199908 459 lue 72 display . Results model is l. 1, x2, x3 (0.4029) les have cient has P1 there Table 7 Independe Constant X1 X2 X3 X4 P-v F-test & H Accord reveal n The res 5.23299 and x4) Accord overall individu y7, whi The x1 increase coeffici EGP1 y . Dependen ent variables F value R2 Hausman te ing to e.g. T non-signific sults of this 93, p < 0.05 ) independen ing to e.g. T significanc ually. The x ile x3 (p > 0 coefficien es EGP1 y ient of x2 h y7 increases nt variable y s Po Coeffic 0.776 -0.000 0.000 -0.041 2.37E 0 st Table 7 F-te cance (F = 1 s model are 5), and the c nt variables Table 4 the ce. Results x1 (p <0.05 0.05) and x4 nt has indire 7 will decr has direct ef s by 0.00012 y7 oled model cient P-va 6028 0.0 0271 0.0 0127 0.0 1746 0.4 E-05 0.1 5.232 0.001 0.355189 F 1.537 est: to comp 1.537970, p e as follow coefficient o s explain 35 F-statistics present x1 5) and x2 (p 4 (p > 0.05) ect effect a rease by ab ffect and is 27, assumin 29 Fix alue Coef 0000 0.8 0026 -9.2 0003 0.0 4272 -0.1 1722 1.0 2993 1855 F-test 7970 pare pooled > 0.05), ind ws: the over of determin 5.5% of the s (p = 0.001 1 (0.0026), p <0.05) ind have non-s and is equa bout 0.0002 equal to 0. ng x1, x3, x4 Asian xed effects m fficient P- 840974 0 25E-05 0 000122 0 183745 06E-05 0 2.8 0.0 0.563521 P-value 0 χ2 4.0 model and t dicating tha rall regress ation (R2) i variance in 855) is less x2 (0.000 dependent v significant o al to -0.000 271, assumi .000127. A 4 are fixed. n Journal of F model R -value C 0.0000 0.5230 0.0062 0.1180 0.5902 880056 008701 0.1816 Hausman 092307 the fixed ef at the pooled ion model s 0.355189, the depend s than 0.05. 03), x3 (0.4 variables ha on y7. 0271. Cons ing x2, x3, ccordingly, Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro Random effe Coefficient 0.787391 -0.000234 0.000121 -0.058816 2.05E-05 0.3284 n test P-val 0.393 ffects model d model is b is significa , i.e. the (x1 dent variable Therefore, 4272), x4 ( ave signific sequently, w x4 are fix when x2 in ccounting 946-052X 14, No. 2 think.org/ ects model P-value 0.0000 0.0126 0.0006 0.3370 0.2298 4.646938 0.003749 477 lue 37 l, results better. ant (F = 1, x2, x3 e (y7). there is (0.1722) cance on when x1 xed. The ncreases Table 8 Independe Constant X1 X2 X3 X4 P-v F-test & H Accord outcom better. Accord of this p >0.05 indepen Accord non-sig The e.g individu signific on y8. increase . Dependen ent variables F value R2 Hausman te ing to e.g. T mes are non- ing to previ model are 5), and the ndent variab ing to tab gnificance. g. Table 8 ually. Cons cance on y8, The x4 co es by EGP1 nt Variable: Y s Po Coeffic 10.36 0.009 0.005 -5.268 -0.003 0 st Table 8 F-te -significant ious e.g. Tab e as follow coefficient bles explain ble 8 the 8 results pr sistent with , while x1 ( oefficient ha y8 decreas Y8 oled model cient P-va 6703 0.0 9486 0.3 5865 0.1 8782 0.3 3982 0.0 1.734 0.162 0.154417 F 2.009 est: to distin (F = 2.009 ble 8 outcom ws: The ove of determin n 15.4% of th F-statistics resent x1 h the resul p > 0.05), x as indirect ses by 0.003 30 Fix alue Coef 0348 23 3233 -0.0 1171 -1.3 3760 -6.3 0457 -0.0 4847 2479 F-test 9915 nguish betw 9915, p > 0 mes, the po erall regres nation (R2) he variance s (p=0.162 (0.3233), x lt, the inde x2 (p > 0.05 effect and 3982, assum Asian xed effects m fficient P- .92257 0 021265 0 34E-05 0 348233 0 001231 0 2.0 0.0 0.479246 P-value 0 χ2 4.8 een pooled 0.05), indica ooled model ssion mode is 0.15441 e in the depe 2479) exce x2 (0.1171 ependent v 5), and x3(p is equal to ming x1, x2, n Journal of F model R -value C 0.0350 0.1789 0.9976 0.6097 0.5606 052958 052555 6 0.0748 Hausman 882239 model and ating that th l is the appr el is signifi 7, i.e. the ( endent varia eds 0.05 ), x3 (0.3 ariables x4 > 0.05) hav o -0.003982 x3 are fixe Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro Random effe Coefficient 11.62339 0.003275 0.005130 -4.291338 -0.003244 0.1064 n test P-val 0.299 fixed effect he pooled m ropriate. Th icant (F=1. (x1, x2, x3 able (y8). suggesting 760), x4 ( 4 (p <0.05 ve non-sign 2. Hence, w ed. ccounting 946-052X 14, No. 2 think.org/ ects model P-value 0.0608 0.7537 0.1617 0.5642 0.0891 1.131637 0.356199 441 lue 96 ts model, model is e results 734847, and x4) overall (0.0457) ) has a nificance when x4 Table 9 Dep From th a signif IFRS 16 176 of 2 (y1 asse asset tu (y4 EPS equity). 4. Discu During the valu the num represen of the f million The top vehicles June 20 . Summary pendent Var Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 he evaluatio ficant impac 6 equivalen 2018). Thus et turn over urn over, y5 S, y6 curren . ussion the period f ue of the fin mber of th nting an inc financial lea Egyptian p p three fina s, and heav 021, the rea y riable I X n results e.g ct on financ nt of the EAS s, the H1is c r, y5 ROCE ROCE, y7 t nt ratio) x4 ( from April nancial leas he financia crease of 95 asing contra pounds respe ancial lease y equipmen al estate and Independen Variable 1, X2, X3, X g. Table 9, th cial perform S 49 and the confirmed. E, y7 total d total debt/to (financial le to June 202 sing contrac l leasing c 5.4%. From acts increas ectively rep e contracts nt for April d land secto 31 nt X4 R R R R R the study gen mance of th e Egyptian F Results als debt/total as otal assets) x ased fixed a 20 and 2021 cts. From A contracts in April to Ju ed from 92 presenting a sectors are to June 202 or acquired Asian Model Random effe Random effe Random effe Random effe Pool Random effe Pool Pool nerally conf he lessor aft Financial L so specifical ssets) x2 (fin x3 (EBIT/op assets) impa 1, there was April to June ncreased fr une 2020 an 92.5 million n increase o e the real e 21 and Apr the largest n Journal of F D ect Is x x ect ect ect Is x3 x Is x1 ect Is Is x Is x firms firm s ter the appl easing and F lly identifie nancial liab perating pro acts (y4 EPS an increase e 2020 and rom 482 to d April to J n Egyptian of 106.4%. estate and l il to June 2 share of the Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro Description s effected b 1(direct) an x2(indirect) No impact No impact s effected b 3(direct) an x4(indirect) s effected b (indirect) a x2(direct) s effected b x3(direct) s effected b x1(indirect) x2(direct) s effected b x4(indirect) specific fact lication of b Factoring A es x1 (sales) bilities) imp ofit or loss) S, y8 total d e in the num April to Ju o 942 resp June 2021 th pounds to land, transp 2020. From e value of f ccounting 946-052X 14, No. 2 think.org/ n y nd ) y nd ) y and y y ), y ) ors have both the Act (Law impacts pacts (y1 impacts debt/total mber and une 2021 pectively he value 19180.3 portation April to financial leasing the tota about 7 From A pounds transpor of the to about 7 April to pounds The tot million are in fi 17.33% 2,936.8 Financi Financi first six Corples the peri third pla Accord Financi percent of June while it with a Compan There w represen Egyptia The tot 2021. F compar likely d A repor increase during existed contract contracts w al value of c 7,395.6 mill April to June representin rt vehicles otal value o 87.7 million o June 202 representin tal market s Egyptian p first place EF % of total m Egyptian ial Leasing w ial leasing c x months o ss Leasing - iod. In seco ace was EF ing to the ial Regulat age of shar 2021. EFG t lent only 1 share of 16 ny in third p was an over nting an an an pounds in al financial Financial l red to 58.9 b due to the re rt issued by e in the num 2017-2021. in 2017. T ts from 1,7 worth to ab contracts. Fr lion Egyptia e 2021, the ng 4.57% o sector acqu of contracts. n Egyptian 20, the hea ng 3.90% of shares of fin pounds. The FG Hermes market share pounds rep with 2,036. companies of 2021. Th - Egypt (Co ond place w G Hermes F non-bank ory Author res that reac G Hermes F .1 billion p 6.8%, follow place with a rall increas nnual recor n 2020. l leasing co easing con billion Egyp ecovery from y the Egypt mber of com . There wer This report 59 to 3,516 bout 15,776 rom April t an pounds r transport ve of the total uired about . From Apri pounds rep avy equipm f the total va nancial leas e top three s Financial S es. In secon presenting 1 6 Egyptian provided lo his represen orpless) wit was BM Fin Financial So financial a rity, EFG ched 21.8% Financial So ounds in M wed by Cor a share of 11 e in the ma rd of 10.7 ontracts reac ntracts amo ptian pound m the conse tian Financi mpanies ope re 46 comp also expla 6 by the end 32 .7 million E to June 202 representin ehicles sect l value of c 557.7 mill il to June 20 presenting 4 ment sector alue of cont sing compa financial le Solutions w nd place, C 15.76% of pounds rep oans worth nted an ann th a share o nancial Lea olutions wit activities m Hermes Fi % of the fina olutions lent May. After th rpless Leasi 1.9%. arket month billion Eg ched an am ounted to 7 ds in 2020. T equences of ial Regulato erating in th anies by th ained that t d of the yea Asian Egyptian po 0, the real e g 79.59% o tor acquired contracts. F ion Egyptia 021, the hea .11% of the acquired a tracts. nies for Ap easing com with 3,228.2 Corpless Lea total marke presenting 1 35.6 billion nual increas of 16.6% of sing Compa th a share o monthly rep inancial So ancial leasin t 2.2 billion hat came BM ing - Egypt hly lending gyptian pou mount of 10. 79.8 billion This represe the COVID ory Author he financial he end of 20 there was a ar 2021. Thi n Journal of F ounds repre estate and la of the total d about 877. From April an pounds r avy equipm e total value about 362.0 pril to June panies for A Egyptian p asing - Egy et shares. I 0.93%. n Egyptian se of 39%. f the value any with a f 10.7%. ports issued olutions acq ng market in n pounds to M Financial t (Corpless) rate in Jun unds, compa .1 billion E n Egyptian ents an incre D 19 pandem ity revealed leasing dur 021, while an increase is is in addi Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro esenting 82 and sector a value of co .3 million E to June 20 representing ment sector a e of contract 0 million E 2021 was April to Ju pounds repr ypt (Corple In third pla pounds du In first pl of contract share of 15 d by the E quired the n Egypt by customers l Leasing C ) Financial ne 2021 by ared to 4.3 Egyptian pou n pounds in ease of 35.5 mic. d that there ring the last only 27 com e in the num ition to the ccounting 946-052X 14, No. 2 think.org/ .25% of acquired ontracts. Egyptian 020, the g 6.00% acquired ts. From Egyptian 18632.3 ne 2021 esenting ss) with ace, BM uring the ace was s during 5.1%. In Egyptian highest the end in June, Company Leasing 151.3% 3 billion unds for n 2021, 5% most e was an t 5 years mpanies mber of increase in the v billion record o 21.045 sector th 2.185 b amount Egyptia 5. Conc This stu firms li Second Egyptia firms ad financia number of some the Fina the disc signific equival 2018). T asset tu turn ove EPS, y6 equity). Authori during 5 By usin decision couple adoptin Act (La IFRS 16 176 of compar Egyptia above i from fin lessee in value of the Egyptian po of 66.741 bi billion Egy hat had con billion Egyp ted to 3.122 an pounds fo clusion udy is an add isted in the , this study an Financial dopting IFR al statement rs throughou e firm specif ancial Leas cussion abo cant impact ent of the E Thus, the H urn over, y5 er, y5 ROC 6 current ra . The avail ity FRA wa 5 years (201 ng the resu ns regardin of limitatio ng IFRS 16 e aw 176 of 20 6 equivalen 2018). Re rison of the an Financial influence th nancial inst nstitutions i contracts fr ounds by th illion Egypt yptian poun ntracts worth ptian pound 2 billion Eg or the year e dition to the e Egyptian y focuses o l Leasing an RS 16 in dev ts evaluated ut the study fic factors o ing and Fac ove, the stud on lessor EAS 49 and H1is confirm ROCE, y7 E, y7 total d atio) X4 (fin lable data i s limited to 16-2020) eq ults conclu ng their fin ons may se equivalent o 018). Secon nt of the EAS esearchers c before and l Leasing an he generaliz titutions ins instead of th rom 28.6 bil he end of 2 tian pounds ds worth of h 4.845 bill ds for the y gyptian pou end 2017 e current lite FRA for f n lessors th nd Factorin veloping cou d in this stud period 2016 on lessor fina ctoring Act dy generall financial p d the Egypti med. Resul total debt/to debt/total as nancial leas in this stud only 10 non quivalent to uded from t ancing and erve as fut of the EAS ndly, the stu S 49 and the can make d after applic nd Factoring zation of th tead of non he lessors. 33 llion Egypti 2021. The re s worth of c f contracts lion Egyptia year 2017. unds for the erature for a five years hat apply b ng Act (Law untries is th dy, the key 6-2020. The ancial perfo (Law 176 o ly confirms performance an Financia lts also spec otal assets) ssets) X3 (E sed fixed as dy provided nfinancial i o 50 firm ye this study, d better stra ture studies 49 and the udy analyze e Egyptian F more stud cation of g Act (Law he results. In nfinancial in Asian ian pounds eal estate an ontracts for for 2017. A an pounds b The machi e year-end 2 a couple of r 2016-2020 both IFRS 1 w 176 of 20 he catalyst o observation e aim of this ormance afte of 2018). F the firm sp e after app al Leasing a cifically ide X2 (financi EBIT/opera ssets) impa d by the E institutions w ar observati managers ategies to i s. First, the Egyptian Fi es data for Financial L dies for mo IFRS 16 eq 176 of 201 n addition, nstitutions. A n Journal of F in the year nd land sec r the year en After that ca by the end o nery and eq 2021, while easons. Firs adequate t 16 equivale 018). Lack o of this study n was the no s study is to er applying rom the eva pecific facto lication of and Factorin entifies X1 ial liabilities ting profit o ct (y4 EPS, Egyptian Fin without thei ions. will be ab improve fir e study app inancial Lea only 10 les easing and F ore lessor quivalent of 8). These lim researchers Also, resear Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro 2017 reach ctor had the nd 2021, wh ame the aut of 2021, wh quipment c e only 1.433 st, it tracks 1 to identify ent of EAS of studies o y. Accordin noticeable ch o identify the EAS 49 (20 aluation res tors actually both the I ng Act (Law (sales) imp s) impacts ( or loss) imp , y8 total d nancial Re ir names fo ble to mak rm perform plies to the asing and F ssor firms a Factoring A firms for the EAS 49 mitations d s can evalu rchers can e ccounting 946-052X 14, No. 2 think.org/ hing 79.8 e highest hile only tomobile hile only contracts 3 billion 10 lessor change. 49 and on lessor ng to the hange in e impact 019) and sults and y have a IFRS 16 w 176 of pacts (y1 (y1 asset pacts (y4 debt/total gulatory r lessors ke better mance. A e lessors actoring adopting Act (Law a better 9 and the iscussed uate data examine Acknow The dat Regulat Univers the pape Disclos No pote Referen Asimak wide d Finance Baltagi, https://d Baltagi, https://d Biondi, T. J. (20 Americ FASC). Bunea-B approac Chatfie new lea 101-111 De Fari Adoptio Academ 116-143 De Ma account Gibson, Analysi Joubert leases A Journal wledgemen ta used in th tory Author sity, on the er. sure Statem ential confli nces kopoulos, I. determinants e, 35(11), 9 , B. H. (201 doi.org/10.1 , B. H. (20 doi.org/10.1 Y., Bloomf 011). A per can Accoun Accounting Bontaş, C. ch. Revista E ld, H. K., C ase account 1. https://do ia Olivo, R. on of IFRS mic Scientif 3. artino, G. ( ting, 27(2), , Y. S. (20 is of Its Imp , M., Garvi AASB 16 l of new bus nt his paper is rity FRA. W statistical a ment ict of intere ., Samitas, s of firm 30-939. http 13). Panel d 1016/B978- 008). Foreca 1002/for.104 field, R. J., rspective on nting Asso g Horizons, A. (2017). Economia C Chatfield, R ting standar oi.org/10.10 L., Ricciar S 16 for C fic Research 2011). Con 355-365. h 021). The N pacts on Key ie, L., & Pa (IFRS 16) siness ideas available a We appreciat analysis mad st was repor A. and Pap profitability ps://doi.org/ ata forecast 0-444-6273 asting with 47 Glover, J. C n the joint IA ciation's Fi 25(4), 861 Lease acc Contempora R. E., & Poo rds?. The Jo 80/1091321 rdi, R., Sale Companies h Journal f nsiderations https://doi.or New Lease y Financial arle, G. (201 with the i s and trends 34 and can be a te the work de. All error rted by the padogonas, y: Greek e /10.1108/03 ting. Handb 31-5.00018- panel data C., Jamal, K ASB/FASB inancial A -871. https: counting un ană, 2(2), 7 on, P. (2017 ournal of H 11.2017.139 es, G. A. W with Inten for Engine s on the su rg/10.1016/j Accounting Performan 17). Implica inclusion o s, 15(2), 1-1 Asian accessed dir of Dr. Saye s are our own authors. T. (2009). evidence u 3074350910 book of econ -X . Journal of K., Ohlson, J B exposure d Accounting ://doi.org/10 nder IFRS 1 8-84. ). Is the ho Hospitality F 98955 W., & da Silv nsive Use eering, Tech ubject of le /j.adiac.2011 g Standard ce Metrics. ations of th f operating 1. n Journal of F rectly from d Mohamed n. Both autho Firm‐spe sing panel 0993818 nomic foreca of forecastin J. A., Penm draft on acc Standards 0.2308/acch 16 and IAS spitality ind Financial M va, F. L. (20 of Mobile hnology, an ease accoun 1.08.007 ds (Topic 8 e new acco g leases in Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro Egyptian F d Bahrawy, ors worked eq ecific and e data. Man asting, 2, 9 ng, 27(2), 1 man, S. H., & counting fo Committee h-50048 S 17-a com dustry ready Managemen 022). Impac Assets. A nd Sciences nting. Adva 842): An Em ounting stan the balanc ccounting 946-052X 14, No. 2 think.org/ Financial Helwan qually on economy nagerial 95-1024. 153-173. & Wilks, r leases: e (AAA mparative y for the t, 25(2), ts of the merican s, 85(1), ances in mpirical ndard for ce sheet. Knubley Finance Maali, B An Emp Innovat Magli, perform https://d Nasser, Perform https://d Öztürk, of finan and Eco Park, Y from S https://d Park, Y Evidenc https://d Secinar IFRS 16 SMEs. h Singh, A and re https://d Susanti Implem Confere https://d Tóth, Á new IFR Watts, R account Zamora Spanish https://d y, R. (2010 e, 28(5), 32 B. (2018). T pirical Anal tion Review, F., Nobolo mance: Th doi.org/10.5 D., & A mance Case doi.org/10.2 , M., & Ser ncial positio onomics Re Y., & Na, K South Kore doi.org/10.2 Y., & Na, K. ce from doi.org/10.3 ro, S. F., Bre 6 for Financ https://doi.o A. (2013). I etail indust doi.org/10.1 , M., Ardan mentation on ence on En doi.org/10.2 Á. (2018). M RS 16-based R. L., & Zi ting standar a-Ramírez, C h compa doi.org/10.2 ). Proposed 2-327. https The Effect o lysis on the w, 4(1). o, A., & he IFRS 5539/ibr.v11 Alrashedy, T e Study-Air 21608/jsst.2 rçemeli, M. on and key search Jour (2017). The ea. Gadjah 22146/gama (2018). Th m Firms 3390/socsci7 escia, V., Ia cial Stateme org/10.1726 Is leasing a try. Journa 1177/109634 na, I. C., & n Key Fina ntrepreneurs 2991/aebmr Measuring d lease acco mmerman, rds. Accoun C., & Mora anies. St 25115/eea.v d changes to s://doi.org/1 of Applying Airline Ind Ogliari, M 16. Inte 1n8p76 T. (2022). r Arabia. ة 2021.62164. (2016). Im ratios: a ca rnal, 7(4), 1 e effects of h Mada In aijb.12848 e Effect of L s in 7090154 annaci, D., & ents: Empir 65/1537-150 substitute o al of Hos 4801142550 & Dewi, S. P ancial Ratio ship and Bu .k.210507.0 the capitali ounting in H J. L. (1978 ting review, ales-Díaz, J. tudies of v36i2.2536 35 o lease acco 10.1108/146 g the New IF dustry in the M. (2018). ernational The Effec ـــوث مجلة ح .1219 mpact of New ase study on 143. https:// f listing statu Internationa Lease Acco Korea. & Chmet, F rical Eviden 06/2020.01. or complem spitality & 01 P. (2021, M os: Evidence usiness Ma 045 ization imp Hungary. Hu 8). Towards , 112-134. (2018). Eff of Applie Asian ounting. Jou 6357810110 FRS 16 "Le e Middle Ea The effect Business t of IFRS اليـــــة البحـ w Standard n an airline /doi.org/10.2 us on a firm al Journal ounting on C Social F. (2020). R nce the Impa 001 ment to debt? & Tourism May). The Im e from Indo nagement ( pact of off-b ungarian sta a positive ffects of IFR ed Econ n Journal of F urnal of Prop 069936 eases" on Fin ast. Organiz ts on finan Research 16 Applica ـــــة المال جاري IFRS 16 L company i 20409/berj.2 m's lease acc of Busine Credit Ratin Sciences, Relevance in act of the F ? Evidence Research, mpact of IF onesia. In N (ICEBM 20 balance she atistical rev theory of th RS 16 on key nomics, 3 Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro operty Inves inancial Stat zational Stud ncial levera h, 11(8), ation on F 1)23 ,والتجا Leases on st in Turkey. B 201642234 counting: E ess, 19(1), ng and Cost 7(9), n the Applic Financial M from the re , 37(2), 1 FRS 16 (PS Ninth Inter 020) (pp. 29 eet items un view, 1(1), 9 he determin y financial 36(2), 3 ccounting 946-052X 14, No. 2 think.org/ tment & tements: dies and age and 76-89. Financial 1), 1-23. tatement Business 4 Evidence 77-92. t of Debt: 154. cation of Method in estaurant 155-183. SAK 73) national 95-303). nder the 91-108. nation of ratios of 385-406. Copyri Copyrig the jour This is Commo ights ght for this rnal. an open-a ons Attribut article is re access articl tion license etained by t le distribute (http://crea 36 the author(s ed under th ativecommo Asian s), with firs he terms an ons.org/licen n Journal of F st publicatio nd conditio nses/by/4.0/ Finance & Ac ISSN 19 2022, Vol. 1 ajfa.macro on rights gr ons of the C /) ccounting 946-052X 14, No. 2 think.org/ ranted to Creative