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Estimating Damages in Securities Fraud Cases in Saudi Capital Market: The Fiqh, Legal Basis and Econometric Methods تقدير التعويض في قضايا التضليل بسوق الأسهم السعودية: الأسس الفقهية والقانونية والطرق القياسية

Author

Listed:
  • Nader A. Naifar

    (Associate Professor, Department of Finance and Investment, Faculty of Economics and Administrative Sciences Al-Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh, Saudi Arabia)

  • Mohammed I. Al-Suhaibani

    (Professor Department of Finance and Investment, Faculty of Economics and Administrative Sciences Al-Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh, Saudi Arabia)

Abstract

The paper examines the applicable econometric methods to estimate financial damages in securities fraud cases filed with the Committee for the Resolution of Securities Disputes (CRSD) in Saudi capital market. The paper starts with a primer highlighting the key fiqh and legal concepts related to securities fraud cases and the two widely adopted econometric methods to estimate the damage awards. Using real data from Saudi Stock Market (Tadawul), the paper applied the two econometric methods to estimate the damages in three securities fraud cases already filed with CRSD. The paper demonstrates the viability of applying these methods in Saudi legal environment and opens the door for future research on the economic analysis of Saudi laws and the role of econometrics in court rulings. يهدف البحث إلى دراسة قضايا التعويض بسبب التضليل الذي مصدره الشركات المدرجة في السوق المالية السعودية، فيستعرض في البداية أبرز المفاهيم الفقهية والقانونية ذات العلاقة بالتعويض عن الضرر في قضايا التضليل في السوق المالية، ثم يقدم طريقتين تمثلان أبرز الأساليب القياسية المعتمدة في الأسواق العالمية المتقدمة لتقدير مبلغ التعويض عن الضرر في هذه القضايا. ويطبق البحث لغرض المقارنة الطريقتين على ثلاث حالات تضليل وقعت في سوق الأسهم السعودية. ومن أهم نتائج البحث اقتراح تطبيق أساليب قياسية جديدة لتقدير التعويض بسبب التضليل بما يتلاءم مع بيئة المملكة العربية السعودية. ويؤمل أن يفتح البحث المجال لمزيد من الدراسات المتخصصة بالتحليل الاقتصادي للأنظمة السعودية، وربط الأحكام القضائية بالطرق القياسية.

Suggested Citation

  • Nader A. Naifar & Mohammed I. Al-Suhaibani, 2017. "Estimating Damages in Securities Fraud Cases in Saudi Capital Market: The Fiqh, Legal Basis and Econometric Methods تقدير التعويض في قضايا التضليل بسوق الأسهم السعودية: الأسس الفقهية والقانونية والطرق," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(3), pages 47-83, October.
    • Handle: RePEc:abd:kauiea:v:30:y:2017:i:3:no:2:p:47-83
    DOI: 10.4197/Islec.30-3.2
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    More about this item

    Keywords

    securities fraud; excessive ghabn; event study; value line; Saudi capital market exchange. التضليل في الأسواق المالية، الغبن الفاحش، دراسة الحدث، خط القيمة، السوق المالية السعودية.;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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