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Investor Perception of Information Disclosed in Financial Reports of Palestine Securities Exchange Listed Companies

Author

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  • Naser Abdelkarim
  • Yasser A. Shahin
  • Bayan M. Arquawi

Abstract

The primary objective of this study is to investigate the perception of users regarding the availability, adequacy, and usefulness of information disclosed in the financial reports of companies listed on the Palestine Securities Exchange (PSE). A survey methodology was utilized involving a selected sample of information users, i.e., individual and institutional investors, analysts, academics, and intermediaries. Results of the study demonstrated that users perceive reported information as neither adequate nor relevant to investment decisions. In particular, reported information was insufficient, as listed companies did not comply with the minimum disclosure requirements of international standards. This unfavorable perception, along with poor credibility and bad timeliness of the disclosures, has prevented information from being impounded into stock prices. The study presented a number of recommendations that may be helpful in improving the efficiency of the PSE, which in turn will contribute to the Palestinian economy as a whole.

Suggested Citation

  • Naser Abdelkarim & Yasser A. Shahin & Bayan M. Arquawi, 2009. "Investor Perception of Information Disclosed in Financial Reports of Palestine Securities Exchange Listed Companies," Accounting & Taxation, The Institute for Business and Finance Research, vol. 1(1), pages 45-61.
    • Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:45-61
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    References listed on IDEAS

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    1. Lucia S Chang & Kenneth S Most & Carlos W Brain, 1983. "The Utility of Annual Reports: An International Study," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 14(1), pages 63-84, March.
    2. Mohamed A. El-Erian & Manmohan S. Kumar, 1995. "Emerging Equity Markets in Middle Eastern Countries," IMF Staff Papers, Palgrave Macmillan, vol. 42(2), pages 313-343, June.
    3. Ball, R & Brown, P, 1968. "Empirical Evaluation Of Accounting Income Numbers," Journal of Accounting Research, Wiley Blackwell, vol. 6(2), pages 159-178.
    4. Francis, J & Schipper, K, 1999. "Have financial statements lost their relevance?," Journal of Accounting Research, Wiley Blackwell, vol. 37(2), pages 319-352.
    5. Graham, Roger C. & King, Raymond D., 2000. "Accounting Practices and the Market Valuation of Accounting Numbers: Evidence from Indonesia, Korea, Malaysia, the Philippines, Taiwan, and Thailand," The International Journal of Accounting, Elsevier, vol. 35(4), pages 445-470, 010.
    6. Naser Abdelkarim & Said Alawneh, 2009. "The Relationship Between Corporate Governance And The Performance Of Palestinian Firms: An Empirical Study," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 3(2), pages 105-120.
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    Citations

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    Cited by:

    1. Araniyar C. Isukul & John J. Chizea, 2017. "Corporate Governance Disclosure in Developing Countries: A Comparative Analysis in Nigerian and South African Banks," SAGE Open, , vol. 7(3), pages 21582440177, July.
    2. Abdul Razak Abdul Hadi & Shadi Hamad & Eddy Yap Tat Hiung, 2017. "Integration of Financial Markets: A Study of Egypt and Palestine Stock Markets," Applied Finance and Accounting, Redfame publishing, vol. 3(1), pages 1-10, February.

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    More about this item

    Keywords

    Information Disclosure; Market Efficiency; Financial Statements; Information Usefulness;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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