Abstract

The transparency of accounting information and its role in making investment decision (Companies listed on the Saudi stock exchange)

Highlights

  • The present study aimed to explore the impact of accounting information transparency on the process of making investment decisions in Saudi companies

  • It was found that having transparent accounting information shall significantly help managers in making investment decisions

  • If the provided information is accurate, and adequate, the investors shall be capable to predict the price of the stocks in the financial market (Zhu et al, 2015)

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Summary

Introduction

Stockholders to make wise decisions on the right time. It should be noted that providing the aforementioned investors with reliable financial information is highly important. Dhaliwal et al (2012) defined transparency as the extent to which investors have access to the sought financial information that concern the company, they want to invest their funds in. The latter term can be defined as the flow of information from companies to investors. Investors in financial markets must be provided with adequate information about the company they want to invest their money in If the provided information is accurate, and adequate (i.e., the transparency and disclosure levels are accepted), the investors shall be capable to predict the price of the stocks in the financial market (Zhu et al, 2015)

The significance of transparency
The elements of transparency
The study’s objectives
The study’s significance
Previous studies
Data collection methods
The study’s population and sample
The study’s instrument
Variable analysis
Statistical analysis methods
Results
Hypotheses testing
Disclosure
Recommendations
Conflict of interest
Full Text
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