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)
Summary
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)
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