IFRS 9 Measurement Pressure, Classification Choices, and Financial Sustainability: The Moderating Role of State Ownership in Egyptian Banks
Year: 2026
Type: article
Abstract: ABSTRACTPurpose: To examine the association between IFRS 9 measurement outcomes and financial sustainability and assess the moderating role of state ownership in Egyptian commercial banks.Design/methodology/approachUsing a balanced panel of 15 Egyptian commercial banks selected through predefined sample-selection criteria, the study analyzes 180 bank-year observations (2013-2024) using bank and year fixed-effects models.FindingsImpairment-recognition intensity is negatively associated with financial sustainability, whereas FVOCI and FVTPL intensities are insignificant. State ownership significantly attenuates the adverse association. Additional analyses indicate that the relationship is concentrated primarily in the asset-quality dimension, remains robust across alternative specifications, and persists in a post-IFRS 9 subsample (2019-2024) .Research limitations/implicationsThe findings should be interpreted as associations rather than causal effects. The relatively small sample and Egypt-specific setting may limit generalizability.Practical implicationsThe results highlight the importance of impairment-recognition outcomes and governance characteristics in shaping sustainable banking performance.Originality/valueThe study introduces a multidimensional Financial Sustainability Index and provides evidence that state ownership moderates the association between IFRS 9 measurement outcomes and financial sustainability.
Source: ERU Research Journal
Authors: Sherif E.H Nayel, Khaled Abdelaziz Hegazy
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7222901220