27 Copyright © 2014, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 3 DOI: 10.4018/978-1-4666-4639-1.ch003 Corporate Governance Codes in a Transitional Economy ABSTRACT This study aims to investigate the infuence of the introduction of a corporate governance code in 2005 on the levels of compliance with mandatory IFRS disclosure requirements by companies listed on the Egyptian Exchange (EGX) as a leading stock exchange in the Middle East. Using a disclosure index derived from mandatory IFRS disclosure requirements for the fscal year 2007, this study measures the levels of compliance by a sample of 75 non-fnancial companies listed on the focus stock exchange. This study extends the fnancial reporting literature and the emerging market disclosure literature by being the frst to investigate the infuence of corporate governance requirements for best practices on the levels of compliance with mandatory IFRS disclosure requirements by companies listed on the EGX. Results provide evidence of the lack of infuence of corporate governance best practices on the levels of compli- ance with mandatory IFRS disclosure requirements as it is not yet part of the cultural values within the Egyptian context. These fndings are consistent with the notions of the proposed theoretical foundation. INTRODUCTION Across the globe a series of events over the last two decades placed corporate governance at the top of the agenda for business communities, international financial institutions, governments, and capital market regulators. Specifically, these were the Asian financial crisis and the high-profile corpo- rate scandals such as WorldCom, Enron, Lehman Brothers and Tyco. Furthermore, in academia, the topic continues to attract much attention from researchers (e.g., Beasley, 1996; Haniffa & Cooke, 2002; Ghazali & Weetman, 2006; Brown 2007; Ezat & El-Masri, 2008; Felo, 2009; Al-Akra et al., Marwa Hassaan Mansoura Business School, Egypt