Document Details

Document Type : Article In Journal 
Document Title :
The Value of Accounting Disclosure: Investors’ Perceptions
أهمية الإفصاح المحاسبي للمستثمرين بدولة الكويت
 
Subject : Accounting 
Document Language : Arabic 
Abstract : This paper examines the information content and value of corporate financial accounting disclosures to financial analysts and investors generally in Kuwait. The focus is on four major releases of information, the preliminary announcement, annual report, annual general meeting and the interim report. Daily share price data for a sample of firms is used and the issue of thin trading is explored. Particular attention is paid to the incremental information content of the annual report, an issue that has received inadequate research focus to-date in Kuwait. The issue of thin trading is explored in detail and the Scholes and Williams method is used to reduce bias in systematic risk (beta). The relationship between size of firm and announcement information content is also discussed. Moreover, Using OLS tests, the average beta was 81 whereas when estimating the risk measure using an estimating method designed to avoid thin trading bias, the average beta rose to 1.03. Despite the company sample being drawn from actively traded companies, results clearly demonstrate the need for such approaches to reduce bias and the inadequacy of restricting samples to larger companies in an attempt to overcome this bias. The results of this study, inter alia, suggest that the annual report in general contains little apparent information of value to investors for decision-making purposes, although such results may still be consistent with price sensitive information being disclosed in individual firm cases. An inverse relationship between company size and announcement information content is also reported. 
ISSN : 1319-0997 
Journal Name : Economics and Administration Journal 
Volume : 16 
Issue Number : 1 
Publishing Year : 1423 AH
2002 AD 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
وائل إبراهيم الراشد WAEL I. Al-RASHEDResearcher  

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