Examining the mediating role of cybersecurity disclosure in the relationship between bank characteristics and financial Analysts’ forecast accuracy: evidence from Egyptian listed banks

Purpose: This study aims to investigate the direct impact that bank characteristics (such as size, leverage, liquidity, profitability) have on the financial analysts’ forecasts accuracy (FAFA), as well as its direct effect on cybersecurity risk management disclosure (CRMD), in addition to examining CRMD direct effect on FAFA. Additionally, the current study examines the mediating role of CRMD in the relationship between bank characteristics and FAFA. Design/ Methodology/ Approach: The CRMD was measured by examining the reports of 12 listed bank in the Egyptian Exchange (EGX), while data of the bank characteristics were gathered from LSEG (London Stock Exchange Group) resulting in 156 observations, the FAFA data were also gathered from LSEG resulting in 130 observations (excluding 2 banks) over the period from 2012-2024. Data was analyzed in STATA software by applying Ordinary least square (OLS) regression, Logistic regression, and Generalized structural equation modeling (GSEM). Findings: The results found that the influence of bank characteristics on the FAFA was supported. Additionally, the significance of bank size, leverage, liquidity, and profitability, as determinants of CRMD was also supported. Unexpectedly, the results revealed that the influence of CRMD on the FAFA was not statistically significant. Additionally, its meditating role between the bank characteristics and FAFA was not supported. Originality: Previous research on CRMD have taken much attention in developed countries (e.g. USA and Canada) than in developing counterparts, which makes studying it more urgent especially in the banking sector as it is suffers more from cybersecurity breaches, which is one of operational risks.