Purpose: This paper aims to examine the impact of listing firms listed in emerging markets on the London Stock Exchange (LSE) on both financial reporting opacity (FRO) and the sustainable growth rate, as well as the impact of FRO on the sustainable growth rate (SGR).
Design/methodology/approach; Sample of 77 Egyptian Firms was relied on during the period from 2014 to 2023 with a total of 693 observations. The study uses OLS and 2SLS to test research hypotheses.
Findings: The study found that there is a positive relationship between the listing of Firms in emerging markets on LSE and FRO, while there is no relationship between the listing of Firms in emerging markets on LSE and the rate of SGR, while there is a negative relationship between FRO and SGR.
Research limitations; This research is limited to Firms listed on LSE and therefore the rest of the other European stock exchanges are excluded, this research is also limited to Egyptian Firms listed first in the Egyptian Stock Exchange and then listed on LSE and not Firms listed on LSE and then listed on the Egyptian Stock Exchange, as well as the research is limited to analyzing the financial reports of the issuing Firms in the local language
Practical implications: The results of this study are useful to the regulatory and supervisory authorities in developing countries, taking into account the objectives of Firms from listing in emerging markets and that there is a minimum limit for listing in global markets. In addition, current and potential investors should realize that simply listing the company on a foreign stock exchange does not necessarily mean the quality of financial reporting and sustainable growth rates, as well as financial institutions should not rely on the reputation gained by Firms listed on international stock exchanges, but must It do a good audit of the financial reports of Firms listed on international stock exchanges.
Originality/Value; This study is the first of its kind within the limits of researchers' knowledge, which deals with the impact of listing developing country Firms (Egyptian Firms as an example) on SGR, this study is the first of its kind (within the limits of researchers' knowledge), which focuses on listing emerging market Firms (Egyptian Firms as an example) on LSE without other stock exchanges and its impact on FRO and the SGR.