‫بسم هللا الرحمن الرحيم‬
‫الجـامعة اإلسالميــــــــة – غزة‬
‫كلية التـجــــــــــــــــــــــــــــارة‬
‫قسم المحاسبـــــــــــــــــــــــــة‬
THE ISLAMIC UNIVERSITY - GAZA
FACULTY OF COMMERCE
ACCOUNTING DEPARTMENT
Role of Accounting Disclosure in Guiding the
Investment Decisions in Palestine Exchange
A Graduation Project Submitted to the
Faculty of Commerce, the Islamic University of Gaza
In Partial Fulfillment for the Degree of
Bachelor in Accounting
By:
Ahmed A. AbuMutair
Khalid M. Alnairab
Dr. Salah R. Shubair
Supervisor
2012
Dedication
We lovingly dedicate the research
To our parents
To our teachers
To our friends
The researchers…
fo et tT stnotnoC
Chapter 1 / The General Framework Of The Research............................................................................ 1
1.1 Statement of the problem ............................................................................................................... 2
1.2 Importance of the research ............................................................................................................. 3
1.3 Objectives ........................................................................................................................................ 4
1.3.1 Main objective .......................................................................................................................... 4
1.3.2 Specific objectives .................................................................................................................... 4
1.4 Research Hypotheses ...................................................................................................................... 4
1.5 Research variables ........................................................................................................................... 5
1 .6 Methodology .................................................................................................................................. 6
1.7 Time Plan ......................................................................................................................................... 7
1.8 Related Works ................................................................................................................................. 8
Chpter 2 / The Importance Of Accounting Dislosure............................................................................. 13
First :Accounting disclosure................................................................................................................. 14
2.1.1 The concept of data and accounting disclosure ..................................................................... 14
2.1.2 The importance of accounting disclosure .............................................................................. 17
2.1.3 Types of accounting disclosure .............................................................................................. 19
2.1.4 Accounting disclosure under IFRS .......................................................................................... 20
Second :GUIDING THE INVESTMENT DECISIONS IN PALESTINE EXCHANGE ....................................... 24
2.2.1 The concept of the investment and PEX ................................................................................ 24
2.2.2 Objectives of the investment decision ................................................................................... 28
2.2.3 Types of accounting information for investment decision .................................................... 30
2.2.4 The sources to obtain the accounting information ................................................................ 34
2.2.5 Effect of accounting information asymmetry in the stock market ........................................ 41
Chapter3 /Action Research And Hypothesis Testing ............................................................................. 51
3.1 Research Methodology ................................................................................................................. 52
3.2 Society and the research sample................................................................................................... 53
3.3 Research tool ................................................................................................................................. 53
3.4 Validity and reliability of questionnaire ........................................................................................ 54
3.5 Statistical treatments used ............................................................................................................ 63
3.6 Description of the characteristics of the sample........................................................................... 63
3.7 Testing the hypotheses ................................................................................................................. 69
chapter 4 /Results And Recommendations ........................................................................................... 75
First: Results ........................................................................................................................................ 76
Second: Recommendations ................................................................................................................. 78
bibliography .............................................................................................................................................. A
Appendix ................................................................................................................................................... II
Appendix (1) .......................................................................................................................................... II
Appendix (2) .......................................................................................................................................... II
Tables and Figures
Table No. 1 : Time Plan .............................................................................................................................. 7
Table No. 2 : Pearson correlation coefficient in the first scope ............................................................. 55
Table No. 3 : Pearson correlation coefficient in the second scope ......................................................... 57
Table No. 4 : Pearson correlation coefficient in the third scope............................................................. 58
Table No. 5 : Pearson correlation coefficient in the foruth scope .......................................................... 59
Table No. 6 : Pearson correlation coefficient in the fifth scope.............................................................. 60
Table No. 7 : Pearson correlation coefficient for all scopes .................................................................... 62
Table No. 8 : desciription of charactristic of sample ( age ) .................................................................. 63
Table No. 9 : desciription of charactristic of sample (Qualification) ...................................................... 64
Table No. 10 : desciription of charactristic of sample (Scientific specialization) ................................... 64
Table No. 11 : desciription of charactristic of sample (The nature of investor business) ...................... 65
Table No. 12 : desciription of charactristic of sample (The number of years they invest) .................... 65
Table No. 13 : desciription of charactristic of sample (the size of investment) ..................................... 66
Table No. 14 : desciription of charactristic of sample (the important of accounting) ........................... 66
Table No. 15 : desciription of charactristic of sample (The adequacy of accounting) ........................... 67
Table No. 16 : desciription of charactristic of sample (the auditor's report) ......................................... 67
Table No. 17 : desciription of charactristic of sample (guiding the investment decision) ..................... 68
Table No. 18 : desciription of charactristic of sample (the confidence in pex) ...................................... 68
Table No. 19 : Result of a (Sign Test), for the table of the first area ...................................................... 70
Table No. 20 : Result of a (Sign Test), for the table of the second area ................................................. 71
Table No. 21 : Result of a (Sign Test), for the table of the third area .................................................... 72
Table No. 22 : Result of a (Sign Test), for the table of the forth area .................................................... 74
Figure. 1 : Research variables ................................................................................................................... 5
Figure. 2 : the user of accounting information ....................................................................................... 37
Abstract
This research aims to identify in which extent the investors in Palestine Exchange
realize the importance of using Financial Information for instructing them in their
investment decisions and serve their interests.
In this study, we concluded that the accounting information that published by
PEX has an impact on the investors’ decision in specific listed companies ,by
selecting a sample of investors located in GAZA and using the SPSS program to
explain various relations.
The research reveals some important results such as the investors are aware of the
importance of using accounting information in making decisions ,the accounting
information which are involved by financial reports are efficient and they are
used in making decisions.
At the end of this research, some of recommendations are concluded such as it is
necessary to support and to increase the awareness of investors of the importance
of using accounting information , paying more attention of financial lists function
, reinforcing investors of continual training, publishing annual reports which can
help the investors in instructing their investment decisions and supporting PEX
with more clearer information about the accounting information and obligating
the companies with these information.
CHAPTER 1
GENERAL FRAMEWORK OF THE RESEARCH
1
CHAPTER 1 / GENERAL FRAMEWORK OF THE RESEARCH
INTRODUCTION
ccountancy is one of social sciences, which handles a preparation of an
A
information, it seek to measure the results of entity's economic units and
determine their financial positions on a specific date for the submission
of financial
statements
information whether
to
they
meet users'
needs
or beneficiaries
are investors, lenders, auditors or
of such
government
agencies for use in making various of decisions including the investment
decisions.
The financial statements, which represent the output of accounting information
system, are extremely useful for managing economic units as they explain the
extent of entity success or failure in the exploitation of economic resources under
its control, (Mohammed, 2000)
To ensure proper understanding of financial statements, it is necessary that all
significant accounting policies adopted in the preparation and presentation of
financial statements should be disclosed.
Any change in an accounting policy which has a material effect should be
disclosed. The amount by which any item in the financial statements is affected
by such change should also be disclosed to the extent ascertainable. Where such
amount is not ascertainable, wholly or in part, the fact should be indicated. If a
change is made in the accounting policies which has no material effect on the
financial statements for the current period but which is reasonably expected to
have a material effect in later periods, the fact of such change should be
appropriately disclosed in the period in which the change is adopted.
2
CHAPTER 1 / GENERAL FRAMEWORK OF THE RESEARCH
Palestine Exchange (PEX) that was established in 1995 and began
the first trading sessions in 1997 as a private shareholding company and became
a public shareholding company in February 2010 in responding to principles of
transparency and good governance, consider the only local market that promote
investment in Palestine to attract Palestinians’ savings at home and abroad, and to
provides long-term financing for productive and infrastructure projects. The PEX
operates under the supervision of the Palestinian Capital Market Authority ,and
There are 46 listed companies on PEX as of 31/12/2011 with market
capitalization of about $ 2.8 billion across five main economic sectors; banking
and financial services, insurance, investments, industry, and services. Most of the
listed companies are profitable and trade in Jordanian Dinar, while others trade in
US Dollars. Only stocks are currently traded on PEX, but there is potential and
readiness to trade other securities in the future. (Palestine Exchange, 2012).
This research aims to address the study and analysis the importance of accounting
information in making investment decision to the categories of investors, and the
adequacy of financial information published for private companies shares that
was traded on the Palestine Securities Exchange, and the extent of understanding
and awareness of investors to such information, and the extent of their use when
making their investment decisions.
1.1 Statement of the problem
Some Palestinians investors in PEX unable to make a proper investment decision,
either as a result of lack of investors understanding to the accounting
information contained in the F.S of listed companies in the PEX or due to
inadequate information, which make the investors depend on their personal
experiences or
on external
sources to
guide their
investment
decisions,
3
CHAPTER 1 / GENERAL FRAMEWORK OF THE RESEARCH
therefore, those decisions will not be built on the basis of sound science,
which sometimes affects negatively on the investment decisions.
Therefore, the research problem is to test the understanding of the investors'
financial information, and the adequacy of such information and reliability in the
rationalization of investment decisions.
We can formulate research problem in the following questions:
 Are the investors in Palestine Exchange aware the importance of accounting
information contained in financial statements for the investment decision?
 Is the accounting information contained in financial reports sufficient to take
the investment decision?
 Is the investor uses the accounting information for guiding in investment
decision?
 Is there other information affecting investment decision?
 What are the main barriers in using the accounting information in the
rationalization of investment decision?
1.2 Importance of the research

Identify investor character and the necessary information required by him,
and learn how to understand and use this information to help make
appropriate investment decisions.

Test the degree of investor understanding of the accounting.

There have been some failures of some investors in PEX as a result of lack
of understanding of the nature of the market and inappropriate use of
information.
4
CHAPTER 1 / GENERAL FRAMEWORK OF THE RESEARCH
1.3 Objectives
1.3.1 Main objective
Highlighting the importance of accounting information and its role in guiding
investment decisions in PEX.
1.3.2 Specific objectives
The specific objectives of this research are:
 Measure the investors awareness in PEX for the accounting information
 Illustrate the adequacy of the information contained in the financial reports
of PEX listed companies.
 Determine the investors using extent of accounting information when
making investment decisions.
 Determine the main constraints faced by the investor in PEX, which limit
the use of accounting information.
1.4 Research Hypotheses
1. The investor not realize in PEX importance of accounting information in
the rationalization of investment decision.
2. The accounting information contained in financial reports is insufficient to
rationalize the investment decision.
3. There is no other information not included in the financial statements
affect the investment decision.
4. There is some obstacles limit in using of accounting information in guiding
of the decision to invest in PEX.
CHAPTER 1 / GENERAL FRAMEWORK OF THE RESEARCH
1.5 Research variables
The Dependent variable and independent variables
The investment decisions in PEX
5
The investors not realize the importance of accounting information .
F.S contained insufficient accounting information .
There are some obstacles limit the use of accounting information.
Some investors rely on other information to make decisons.
FIGURE. 1
6
CHAPTER 1 / GENERAL FRAMEWORK OF THE RESEARCH
1 .6 Methodology
The research depends on the descriptive analytical method by tracking and
investigate the matter subject, analysis and conclusions as well as to approach the
study content through the study of some references and sources of accounting
disclosure and review some studies and by identifying the reality of work in
PEX.
This has been relying on two methods to collect information and data:
 Interview: through interviews with some of the existing PEX investors
and ask them about how to work in the stock market and get some reports
and statistics.
 Questionnaire: questionnaires will be organized to reconnaissance the
views of respondents about the importance of financial and other
information to rationalize their investment decisions.
7
CHAPTER 1 / GENERAL FRAMEWORK OF THE RESEARCH
1.7 Time Plan
TABLE NO. 1
The work in graduation research began on 12/02/2012 and will end in 16/05/2012.
May
April
12
11
10
9
8
7
6
5
4
3
2
Introductory Activities
Selecting a title
Problem definition
Determine goals, motivation
Finalize objectives
Approval from Dr. Salah
Writing the proposal
Related Works Activities
Draft literature review
literature Review
Draft research strategy and
method
Analyze Activities
Develop questionnaire
Revise questionnaire
Questionnaire administration
Enter data into computer
Data analysis
Concluding Activities
Draft a chapter findings
Complete remaining chapters
Submit to tutor and await
feedback
Revise draft, format for
submission
Print
Submit
1
Activity
March
February
Week
8
CHAPTER 1 / GENERAL FRAMEWORK OF THE RESEARCH
1.8 Related Works
A) Tinic Study, (1990) '' A Perspective on the Stock Market’s Fixation on
Accounting Numbers'': The study talked about an investor’s adoption extent on
accounting numbers and their effect on decision making, in addition to some of
factors that influence it such accounting changes policies.
The study has reached to following conclusions:
1. Those investors are interested in accounting changes Induced by exporting
companies; in which accounting information consider the cost of time and
money to study these changes and their high impact.
2. Some investors conclude changes or differences that occur for numbers and
accounting information to the different accounting policies which used in
F.S preparation.
3. There is large effect on investors accounting numbers in which can be
available on their investment trends that lead to appropriate decisions in
stocks acquisition.
4. The accounting numbers considers as most important instrument to low
capital firms.
B) Rowaed, (2005): This research aims to test the utility of accounting
information for decision makers in investment of listed companies on the Amman
Stock
Exchange in
the accounting
addition
reports that
to
test the
have
been
consistency and
disclosed by these
uniformity in
companies
and determine the most important factors influencing investment decisions in
securities.
9
CHAPTER 1 / GENERAL FRAMEWORK OF THE RESEARCH
The study has reached to following conclusions:
1. The information published in reports of the listed companies within
the Amman Financial Market is clearly affect the decisions of the
investors in the market whether to accept the investment or ignored
it.
2. Financial and accounting information published is not enough for
investors in the market and therefore the investment decision is
subject at times to go personal and not rational.
3. There are influential factors in the market value of the shares of the
listed companies in Amman Stock Exchange.
C) Kwaku Study, (1995) '' The Information Content of interim financial
reports: UK evidence”: The study examine whether interim report includes
information will affect stock prices, a study suppose that the main objective of
financial reports is helping investors in their decisions. This study has been
applied to a sample of 100 listed companies in London exchange.
The study has reached to following conclusions:
The interim financial report has affected on financial securities prices at reports
issuance, which contributes to assist investors in making investment decisions.
D) Wright, Ken (1996) ''Venture capitalists, unquoted equity investment
appraisal'': The study dealt with the role and importance of accounting
information for investors in financial markets in the United Kingdom, the
study also indicated the importance of evaluation and accounting information
when the trade-off between different types of securities.
10
CHAPTER 1 / GENERAL FRAMEWORK OF THE RESEARCH
The study has reached to following conclusions:
Importance of accounting information in the evaluation and trade-offs between
different types of economic units of the shares (securities), in order to assist the
investor in making investment decisions.
E) Zourb,(2005)''Test the
operational
efficiency
of
Palestine
financial market '':This study aimed at identified the natural and the function
of Palestine financial market and the factors that organized it , in addition the
study determined the difficulties faced by PEX. The study has been applied to
a sample survey of 150 investors.
The study has reached to following conclusions:
1- The PEX contributes the investment process and published accurate
information on the trading
2-The number of brokers are not enough.
In addition to these studies, there are other studies relied on quantitative
methods and statistics and rather than survey lists so as to measure the role of
accounting information for investment decisions in the markets of various
securities in the world. From these studies that were taken on companies listed on
the London Stock Exchange, such as: Fredric, Taffler study (1995).
Or the New York Stock Exchange, such as Malcolm and Taffler (1995) study,
Calahan study (1997) .
Some of studies in Madrid Stock Exchange, such as Costa (2006) study.
11
CHAPTER 1 / GENERAL FRAMEWORK OF THE RESEARCH
These studies have shown that the use of all financial information is very
important when setting the prices of securities, and materiality of different
elements and components that are contained in this information.
By reviewing all the above studies, there have been indicators of accounting
information importance in which used for investment decisions in the securities
market, and also, those investors understand the importance of accounting
information for their decision of investment in these markets. On the other hand
the results of these studies varied with respect to the adequacy of the information
published for purposes of computing the investment in financial markets, and
while the majority of studies confirmed that this information is not sufficient for
the decision to invest in the securities markets, there are some studies to confirm
the adequacy of such information.
CHAPTER 2
IMPORTANCE OF ACCOUNTING DISCLOSURE IN
GUIDING THE INVESTMENT DECISIONS IN PALESTINE
EXCHANGE
13
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
INTRODUCTION
his chapter deals with accounting disclosure and its importance
in guiding the investment decision in the stock market, in the first
section we identified the accounting as a system of information and
features of this system, and the concept of data; and accounting disclosure; and
types of accounting disclosure and its characteristics and restrictions on its
availability and its users and finally presentation of information under IFRS.
T
The second section deals with the objectives of the investment decision and the
types and sources of accounting information for investment decision ;and the role
of accounting information in the decision; and finally the impact of accounting
information asymmetry stock market, and based upon the chapter has been
divided as follows:
FIRST SECTION : ACCOUNTING DISCLOSURE




The concept of data and accounting disclosure
The importance of accounting disclosure
Types of accounting disclosure
Accounting disclosure under IFRS
SECOND SECTION :GUIDING THE INVESTMENT DECISIONS IN PALESTINE
EXCHANGE




The concept of the investment and PEX
Objectives of the investment decision
Types of accounting information for investment decision
The sources to obtain the accounting information for decisionmaking
 Effect of accounting information asymmetry in the stock market
 The role of accounting information in the rationalization of the
investment decision
14
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
FIRST SECTION
ACCOUNTING DISCLOSURE
2.1.1 THE CONCEPT OF DATA AND ACCOUNTING DISCLOSURE
The disclosure principle states that you should include in an entity's financial
statements all information that would affect a reader's understanding of those
statements. Your interpretation of this principle is highly judgmental, since the
amount of information that can be provided is potentially massive. To reduce the
amount of disclosure, it is customary to only disclose information about events
that are likely to have a material impact on the entity's financial position or
financial results (GAAP, 2012)
This disclosure may include items that cannot yet be precisely quantified, such as
the presence of a dispute with a government entity over a tax position, or the
outcome of an existing lawsuit. Full disclosure also means that you should
always report existing accounting policies, as well as any changes to those
policies (such as changing an asset valuation method).
There are several definitions of disclosure which mostly have focused on present
and provide information to users, actually that shows the financial position of the
company and we try to address some of them:
1) Disclosure means the release, transfer, provision of, access to, or divulging in any
other manner of information outside the entity holding the information (Ed Jones,
2011).
2) The submission of facts and details concerning a situation or business operation.
In general, security exchanges and the SEC require firms to disclose to the
investment community the facts concerning issues that will affect the firms' stock
15
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
prices. Disclosure is also required when firms file for public offerings (Scott,
2003).
3) The voluntary or required release of information relevant to a security, company,
fund, or anything else. In order to be listed on an exchange, a company must
provide disclosure on itself by registering with the SEC and abiding by
regulations that govern what information about itself that the company releases.
Disclosure exists to prevent price manipulation and anything else that would
disrupt the efficiency of trade (Farlex, 2011).
4) Disclosure is an intellectual property term that means one of two things.
 A disclosure is any public distribution of information about an invention, by
print, demonstrations, or other means.
 Disclosure also refers to any part of a patent application process where the
inventor discloses details about his invention. An adequate disclosure would
let a person skilled in the area of your invention reproduce or use your
invention.
While the data is a set of facts and figures with symbols and indications
of certain non-classified, the decision maker will benefit from it only after
treatment for the purpose of producing
information that may take the form of
numbers or historical facts and events on the activities of the entity (Abdul
Razak, 1993)
Therefore we can say that the data is all the alternatives that reflect the reality of
facts and events and numbers raw is not meaningful or significant in itself,
and the advantage of being objective in nature reflect the fact that the events
of certain financial messy inside the system or as a result of handling the system
with other parties outside the system (environment ) and is not intended for use,
16
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
and
you
need to manufacture (process) in
order
to turn him into a
final
product ,and the use of meaningful and useful to satisfy the need for a list
of decision makers and this product is called information.
information Data are processed and have a sense of the receiver or user of and
have values or unexpected fact in the ongoing process of receiving or making
decisions, and
should
add to what
we
know
about an
event
or place,
and explain something to the receiver does not know or unpredictable. (Fayoumi,
1992)
Therefore we can say that information is a real-valued or expected in the ongoing
or future decision-making and any set of data arranged in a certain (operation and
processing) for use by a particular person in a particular purpose at a specific
time
which is subjective in
nature, to link that
person is a final
product,
and functions to increase the user has to know the person and explain to user
something does not know and cannot be predictable with the observation that all
data and facts but
not
all
the
information facts, information,
considered one of the individuals maybe data for another individual .
and is
17
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
2.1.2 THE IMPORTANCE OF ACCOUNTING DISCLOSURE
The disclosure is an effective tool for improving investor protection. Without
good disclosure, it is easy to take advantage of minority investors. Of course,
with any disclosure regime some of the responsibility for protecting the investor
is shifted to the investor himself. However, informed self-interest has proven to
be quite effective. With good information, the perception of risk in the markets is
reduced, as is the cost of capital.
Even very small changes in interest rates and the cost of capital can have a large
impact on the economy as a whole. It also encourages better management of
enterprises. Disclosure regimes do not appear to be designed for this purpose but
better markets and better disclosure seem to make for better companies. The
common wisdom is that “you manage what you measure”. The corollary is, of
course, “out of sight, out of mind”. Better-run companies, in turn, contribute to
greater economic efficiency and a greater capacity to generate wealth. This is
important since it is not only the investor that benefits. The whole society has
something to gain. In short, good information allows for more informed, more
rigorous economic decision making (Frederick, 2012).
Financial reporting is one of the tools for acquiring information and is a source of
creating investor confidence in a market. Harmonization is one of the frequently
used approaches to improve financial reporting, since the financial reporting level
is considerably poor in emerging markets as compared to developed ones.
Benefits of accounting harmonization include cost savings for multinational
companies, enhanced comprehensiveness and comparability of different
countries’ financial reports, worldwide spread of high quality accounting
18
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
standards as well as practices and finally presenting low cost financial accounting
standards to developing countries (Saudagaran, 2003).
Thus, the presence of an international set of accounting standards is needed.
Some countries adopt International accounting standards (IAS) (which are now
referred to as the International Financial Reporting Standards (IFRS)) as their
national GAAP, while some other countries use IAS as guidance to develop their
own accounting standards.
The purpose of accounting disclosure is to inform both current and potential
investors of the accounting strategies and methods used when developing
periodic corporate financial statements. These financial statements include, but
are not limited to, the balance sheet, the statement of cash flows, the income
statement, and the statement of stockholders’ equity. The full disclosure principle
requires that any event that would have an impact on the financial statements
should be disclosed (Nuttall, 2012).
As has been seen quite often in recent years, the importance of disclosing
complete and accurate accounting information can have huge and lasting effects
on the individuals, families, competitors, creditors, investors, markets, and many
other groups associated with large corporate firms. These groups are known in
the accounting world as stakeholders in the company. Financial statements are
used by both internal users and external users. Internal users use the financial
statements to plan for the future.
19
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
2.1.3 TYPES OF ACCOUNTING DISCLOSURE
The accounting disclosure respect to all relations with the financial statements in
terms of the content of the terms and quantitative information or descriptive, and
the presentation of these items, style and information within each list, as well as
accounting policies that are followed in the measurement to determine the value
of each item, to help users of these lists in the make good decisions and reduce
uncertainty they have about economic events in the future, and represents the
main financial reports, and noted that the financial reports the most
comprehensive reports , and at how much appropriate information to be disclosed
there are three levels of disclosure are:
1) Adequate disclosure: Adequate disclosure in accounting practices mandates
that all readers of a financial statement have access to pertinent data that
would be deemed essential to understanding a company's financial position.
Adequate disclosure requires that key facts are included within the financial
statement to help investors and creditors adequately assess the financial
situation of a particular company.
2) Full disclosure: The general need in business transactions for both parties to
tell the whole truth about any material issue pertaining to the transaction.
The law requires full disclosure from companies that wish to be publicly
traded on the major PEX exchanges. By enforcing this rule, the PEX attempts
to instill confidence in investors that the financial marketplace is efficient and
transparent so that individual investors can take part in it for material profit.
20
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
3) Fair disclosure: The rule mandates that all publicly traded companies must
disclose material information to all investors at the same time.
The regulation sought to stamp out selective disclosure, in which some
investors (often large institutional investors) received market moving
information before others (often smaller, individual investors).Most of the
corporate announcements are issued in press releases or during the conference
calls and are summarized at websites.
4) Informative disclosure: This type confirms on the content of the information
provided, focusing on the appropriateness of decisions to be taken, therefore,
while the above three concepts focus on the amount of information that should
be included in financial reports (yousef, 2010).
2.1.4 ACCOUNTING DISCLOSURE UNDER IFRS
Financial statements shall present fairly the financial position, financial
performance and the cash flows of the entity. Fair presentation requires the
faithful presentation of the transactions,
other events, and condition in
accordance with the definitions and recognition criteria for assets, liabilities,
income and expenses set out in the Framework. The application of IFRS, with
additional disclosure when necessary, is presented to result in financial
statements that achieve a fair presentation. (IAS 1, Para 15)
An entity whose financial statements comply with IFRS shall make an explicit
and unreserved statement of such compliance in the notes. Financial statements
shall not be described as complying with IFRS unless they comply with all the
requirements of IFRS. (IAS 1, Para 16)
21
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
The accounting standard IFRS 7 requires entities to provide disclosures in their
financial statements that enable users to evaluate the significance of financial
instruments, the nature and extent of risks arising from them and how entities
manage those risks. On this page you can access a range of articles, books and
online resources providing quick links to the standard, summaries, guidance and
news of recent developments.
The objective of this IFRS is to require entities to provide disclosures in their
financial statements that enable users to evaluate:
1) The significance of financial instruments for the entity’s financial position
and performance.
2) The nature and extent of risks arising from financial instruments to which
the entity is exposed during the period and at the end of the reporting
period, and how the entity manages those risks.
An entity shall disclose in the summary of significant accounting policies:
1) the measurement basis (or bases) used in preparing the financial
2) The other accounting policies used that are relevant to an understanding of
the financial statements.
It is important for an entity to inform users of the measurement basis or bases
used in the financial statements (for example, historical cost, current cost, net
realizable value, fair value or recoverable amount) because the basis on which an
entity prepares the financial statements significantly affects users’ analysis. When
an entity uses more than one measurement basis in the financial statements, for
example when particular classes of assets are revalued, it is sufficient to provide
22
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
an indication of the categories of assets and liabilities to which each measurement
basis is applied.
Deciding whether a particular accounting policy should be disclosed,
management considers whether disclosure would assist users in understanding
how transactions, other events and conditions are reflected in reported financial
performance and financial position. Disclosure of particular accounting policies
is especially useful to users when those policies are selected from alternatives
allowed in IFRSs. An example is disclosure of whether a venture recognizes its
interest in a jointly controlled entity using proportionate consolidation or the
equity method (see IAS 31 Interests in Joint Ventures). Some IFRSs specifically
require disclosure of particular accounting policies, including choices made by
management between different policies they allow. For example, IAS 16 requires
disclosure of the measurement bases used for classes of property, plant and
equipment.
An accounting policy may be significant because of the nature of the entity’s
operations even if amounts for current and prior periods are not material. It is
also appropriate to disclose each significant accounting policy that is not
specifically required by IFRSs but the entity selects and applies in accordance
with IAS 8.
An entity shall disclose, in the summary of significant accounting policies or
other notes, the judgments, apart from those involving estimations (see paragraph
125), that management has made in the process of applying the entity’s
accounting policies and that have the most significant effect on the amounts
recognized in the financial statements.
In the process of applying the entity’s accounting policies, management makes
various judgments, apart from those involving estimations, that can significantly
23
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
affect the amounts it recognizes in the financial statements. For example,
management makes judgments in determining:
 Whether financial assets are held-to-maturity investments;
 When substantially all the significant risks and rewards of ownership of
financial assets and lease assets are transferred to other entities;
 Whether, in substance, particular sales of goods are financing arrangements
and therefore do not give rise to revenue; and
 Whether the substance of the relationship between the entity and a special
purpose entity indicates that the entity controls the special purpose entity.
Some of the disclosures made in accordance with paragraph 122 are required by
other IFRSs. For example, IAS 27 requires an entity to disclose the reasons why
the entity’s ownership interest does not constitute control, in respect of an
investee that is not a subsidiary even though more than half of its voting or
potential voting power is owned directly or indirectly through subsidiaries. IAS
40 Investment Property requires disclosure of the criteria developed by the entity
to distinguish investment property from owner-occupied property and from
property held for sale in the ordinary course of business, when classification of
the property is difficult (IAS 1, IFRS 7).
24
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
SECOND SECTION
GUIDING THE INVESTMENT DECISIONS IN PALESTINE EXCHANGE
2.2.1 THE CONCEPT OF THE INVESTMENT AND PEX
The word "investment" can be defined in many ways according to different
theories and principles. It is a term that can be used in a number of contexts.
However, the different meanings of "investment" are more alike than dissimilar.
Generally, investment is the application of money for earning more money.
Investment also means savings or savings made through delayed consumption.
According to economics, investment is the utilization of resources in order to
increase income or production output in the future.An amount deposited into a
bank or machinery that is purchased in anticipation of earning income in the long
run are both examples of investments. Although there is a general broad
definition to the term investment, it carries slightly different meanings to
different industrial sectors. According to economists, investment refers to any
physical or tangible asset, for example, a building or machinery and equipment.
On the other hand, finance professionals define an investment as money utilized
for buying financial assets, for example stocks, bonds, bullion, real properties,
and precious items.According to finance, the practice of investment refers to the
buying of a financial product or any valued item with an anticipation that positive
returns will be received in the future (jose, 2011).
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
2.2.1 Palestine Exchange (PEX)
Palestine Exchange (PEX) was established in 1995 to promote investment in
Palestine. The PEX was fully automated upon establishment- a first amongst the
Arab Stock Exchanges. The PEX became a public shareholding company in
February 2010 responding to principles of transparency and good governance.
The PEX operates under the supervision of the Palestinian Capital Market
Authority.
The PEX strives to provide an enabling environment for trading that is
characterized by equity, transparency and competence, serving and maintaining
the interest of investors.
The PEX is very appealing in terms of market capitalization, it is financially
sound, and well capitalized to maintain a steady business in a volatile world, as it
passed with the minimum level of impact of the global financial crisis compared
to other MENA Exchanges.
There are 46 listed companies on PEX as of 31/12/2011 with market
capitalization of about $ 2.8 billion across five main economic sectors; banking
and financial services, insurance, investments, industry, and services. Most of the
listed companies are profitable and trade in Jordanian Dinar, while others trade in
US Dollars. Only stocks are currently traded on PEX, but there is potential and
readiness to trade other securities in the future.
In 2009, the PEX ranked thirty third amongst the worldwide security markets,
and regionally comes in second in terms of investor protection.
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
PEX Vision
The PEX seek to be a model for Arab and regional financial markets, through
providing innovative services, proposing ideal investment opportunities in
securities, attracting investments, the use of state of the art technology,
compliance to the rules of corporate governance and establishing constructive
relations with Arab, regional and global markets.
PEX Mission
To provide a fair, transparent and efficient market for trading securities that
serves investors, protects their interests, contributes to creating an enabling
environment that attracts local and foreign investments, and interacts with local
and Arab relevant institutions in a manner that serves the national economy and
enhances the culture of investment in financial markets.
PEX Objectives

To provide a safe and enabling trading environment characterized by
efficiency, fairness and transparency.

To increase the investment awareness of the local community and enhance
PEX relations with local, Arab and international economic institutions and
forums.

To develop domestic investments and attract Palestinian diaspora &
foreign capital.

To increase the depth of the exchange by continuously listing new
companies and providing new and diverse financial tools and services.

To create a proficient working environment within the PEX by investing in
human capital and maintaining an up-to-date technologies of stock
markets.
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
There are many reasons to invest in the Palestine Exchange:
1. Small yet robust.
2. Great spring back potential.
3. Tried & tested.
4. Undervalued stocks.
5. Evolving and efficient regulatory environment within international best
practice.
6. No restrictions on foreign investment or taxation of capital gains, no
foreign exchange restrictions.
PEX Regulatory Framework
In 2005, with the development of the legal structure of the securities sector in
Palestine, particularly the issuance of the Securities Law No. (12) of 2004 and the
Capital Market Authority Law No. (13) of 2004, the Palestine Capital Market
Authority (CMA) took over the responsibility of supervising the PEX and issuing
securities by the public shareholding companies.
The PEX operates in accordance with the Securities Law No. (12) of 2004, and
the bylaws that stemmed from it in a manner that does not contravene with the
CMA directives.
The PEX works also in accordance with modern regulations, which form a strong
basis to ensure a fair trading environment. These regulations include: listing
regulation, trading regulation, disclosure regulation, membership regulation,
dispute resolution regulation and the regulation of professional conduct
(www.pex.ps).
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
2.2.2 Objectives of the investment decision
Any investment decision will be influenced by three objectives – security,
liquidity and yield. A best investment decision will be one, which has the best
possible compromise between these three objectives.
Individually these objectives are very powerful in influencing the investors.
Collectively they work against each other forcefully, as can be seen below. Hence
the acclaim – A best investment decision will be one, which has the best possible
compromise between these three objectives.
When selecting where to invest our funds we have to analyze and manage these
three objectives.
 Security: Central to any investment objective, we have to basically ensure
the safety of the principal. One can afford to lose the returns at any given
point of time but s/he can ill afford to lose the very principal itself. By
identifying the importance of security, we will be able to identify and
select the instrument that meets this criterion. For example, when
compared with corporate bonds, we can vouch safe the safety of return of
investment in treasury bonds as we have more faith in governments than in
corporations. Hence, treasury bonds are highly secured instruments.
 Liquidity: Because we may have to convert our investment back to cash or
funds to meet our unexpected demands and needs, our investment should
be highly liquid. They should be en cashable at short notice, without loss
and without any difficulty. If they cannot come to our rescue, we may have
to borrow or raise funds externally at high cost and at unfavorable terms
and conditions. Such liquidity can be possible only in the case of
29
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
investment, which has always-ready market and willing buyers and sellers.
Such instruments of investment are called highly liquid investment.
 Yield: Yield is best described as the net return out of any investment.
Hence given the level or kind of security and liquidity of the investment,
the appropriate yield should encourage the investor to go for the
investment. If the yield is low compared to the expectation of the investor,
s/he may prefer to avoid such investment and keep the funds in the bank
account or in worst case, in cash form in lockers. Hence yield is the
attraction for any investment and normally deciding the right yield is the
key to any investment.
 Relationship: There is a tradeoff between risk (security) and return (yield)
on the one hand and liquidity and return (yield) on the other (Mclaney,
2010).
Normally, higher the risk any investment carries, the greater will be the yield, to
compensate the possible loss. That is why, ‘fly by night’ operators, offer sky high
returns to their investors and naturally our gullible investors get carried away by
such returns and ultimately lose their investment. Highly secured investment does
not carry high coupon, as it is safe and secured. When the investment is illiquid,
(i.e. one cannot get out of such investment at will and without any loss) the
returns will be higher, as no normal investor would prefer such investment.
These three points – security, liquidity and yield in any investment – make an
excellent triangle in our investment decision-making. Ideally, with given three
points of any triangle, one can say the center of the triangle is fixed. In our
investment decision too, this center – the best meeting point for S, L and Y – is
important for our consideration.
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
However, if any one or two of these three points are disturbed – security,
liquidity and yield in any investment – the center of the triangle would be
disturbed and one may have to revisit the investment decision – either to continue
the investment or exit the investment.
All these points: security, liquidity and yield – are highly dynamic in any market
and they are always subject to change and hence our investor has to periodically
watched his/her investment and make appropriate decisions at the right time.
If our investor fails to monitor her / his investment, in the worst circumstances,
s/he may lose the very investment.
Thus, we will return to our original statement - A best investment decision will
be one, which has the best possible compromise between these three objectives –
security, liquidity and yield (Guruswami, 2010).
2.2.3 Types of accounting information for investment decision
Investors pore over companies' accounting statements to find the next economic
gems, that is, businesses with promising products that will deliver blockbuster
returns. In reviewing corporate performance summaries, financial-market
participants focus on various reports, including balance sheets and statements of
profit and loss. Investors also keep a close eye on corporate operating ratios, also
known as performance metrics.
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
Characteristics of Useful Information in Accounting
1. Statement of Financial Accounting Concepts(SFAC)
o
SFAC 1, the first statement, describes the objectives of financial
reporting. Creditors, such as credit unions and banks, and investors
such as stock and bond holders, are the primary audience. Creditors
and investors are expected to know enough about accounting that they
can read a financial statement. These parties need to know whether a
company is likely to pay off its debts, and what type of return they will
receive by investing in the company.
2. Relevance
o
SFAC 2 defines specific terms that relate to accounting information:
relevance and reliability. Relevant information includes recent
accounting records. For a debt holder, relevance includes information
such as how much debt the company currently holds, what interest rate
the company is paying to other creditors, and whether the company
will need to take out additional loans in the future to cover its
operating expenses.
3. Reliability
o
Reliability is another characteristic of financial information. A reliable
accounting document includes information that an investor believes is
accurate. A company can show that its accounting records are accurate
by hiring an independent accountant to report on the records. Auditors
check the records to make sure they conform to Generally Accepted
Accounting Principles, or GAAP. An unqualified audit report means
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
that the auditor found no major, or material, problems with the
financial information in the company records and it is considered
reliable.
4. Comparability and Consistency
o
SFAC 2 includes secondary characteristics, comparability and
consistency, according to the University of Mississippi. To be useful,
accounting records should allow comparison to similar records. An
investor will want to look at financial statements going back several
years to see if the company is improving its financial position. The
records must be consistent. Accountants have to recalculate
information if the company changes its inventory tracking method, for
example.
5. Future Earnings
o
Accurate accounting information provides information about future
earnings. According to Western Kentucky University, accrual-based
records are more useful than records calculated on a cash basis. The
company may not receive a cash payment this quarter, but if it will
receive a check next quarter because of a current sale, the accrual
method still records the transaction as current revenue.
Analyzing corporate solvency enables investors to set financially viable
companies apart from moribund firms. In a global marketplace in which
companies interact with international business partners, investors generally make
sure companies have sufficient cash to operate domestically and overseas.
Securities-exchange participants use balance sheet information to appraise
corporate solvency. Specifically, they review a firm's assets, liabilities and equity
33
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
capital. Net worth, or assets minus liabilities, is an important indicator that lifts
the veil on a company's ability to repay its debts. For businesses, being able to
meet financial commitments is important. Consequently, investors with a longterm perspective want to make sure companies will still be in business in five or
10 years.
Corporate profitability is a constant priority for stock-exchange players,
especially those who make long-term investment bets. Appraising a firm's
profitability trends requires analytical skills, attention to detail and financial
acumen. When reviewing corporate profitability, investors sift through various
accounting reports, including statements of profit and loss, budgets and financial
ratios. Reporting consistently positive results is a confidence-building exercise
for companies, as it improves corporate reputation in the investment community.
Financial metrics covering corporate profitability include gross profit margin,
which equals total sales minus costs of goods sold divided by total sales. The
ratio calculates how much a firm earns on each dollar of sales.
Publicly listed companies must disclose information related to operating liquidity
movements, indicating to investors and the public how much cash is in corporate
coffers. Disclosure requirements are stricter for large, multinational companies
that borrow on major securities exchanges, such as the New York Stock
Exchange and Tokyo Stock Exchange. Failure to provide sufficient explanation
about corporate cash inflows and outflows may cause a firm to come under
regulatory scrutiny. A corporate statement of cash flows indicates a firm's
liquidity movements that cover operating, investing and financing activities.
Before making investment bets, financial-market players seek to understand
current players who are already in the game. In other words, investors who want
34
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
to purchase a company's equity shares generally sift through the list of current
shareholders. This in-depth, systematic review is key because it enables potential
stockholders to gauge investors' faith in the company. A corporate equity
statement indicates accounting data relating to equity capital holders.
2.2.4 The sources to obtain the accounting information for decisionmaking
Accounting information comes from internal sources in the organization, because
the accounting system in the organization is the source of the accounting
information, financial statements that prepare by the accounting system include
the accounting information that needed by the users.
Financial statements: are records that provide an indication of an
individual’s, organizations, or business's financial position.
Financial position: refers to a company’s economic resources, such as
cash, inventory, and buildings, and the equities and liabilities against those
resources at a particular time.
There are four basic types of financial statements statement of financial
position, Income statements, statement of cash flow and statement of retained
earnings.
Types of financial statements:
1. Statement of financial position:
It presents a summary statement of the firm‘s financial position at a given point
in time, the statements of financial position are used to provide insight into a
company’s assets and debts at a particular point in time, and provide information
35
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
about the company’s shareholder equity, the company lists its assets on the left
side of the balance sheet and its debts and liabilities on the right.
2. Income statements:
The income statement provide a financial summary of the firm‘s operating results
during specific period, and present information concerning the revenue earned by
a company in a specified time period. Income statements also show the
company’s expenses in attaining the income and shareholder earnings per share.
3. Statement of cash flow:
The statement of cash flow provides a look at the movement of cash in and out of
a company; these financial statements include information from operating,
investing, and financing activities. The cash-flow statement can be important in
determining whether or not a company has enough cash to pay its bills, handle
expenses, and acquire assets.
4. Statements retained earnings:
The statement of retained earning presents the changes in a company's or
organization’s retained earnings over a specific period of time. These statements
show the beginning and final balance of retained earnings, as well as any
adjustments to the balance that occur during the reporting period. This
information is sometimes included as part of the balance sheet or it may be
combined with an income statement. However, it is frequently provided as a
completely separate statement.
In order to the accounting information to be useful, the accountant must be clear
about for whom the information is being prepared and for what purpose the
information will be used. There are likely to be various groups of people with an
interest in a particular organization, in the sense of needing to make decisions
about that organization (Moller.jack, 2009).
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
There are several user groups with an interest in the accounting information
relating to a business. The majority of these are outside the business but,
nevertheless, they have a stake in the business. This is not meant to be an
exhaustive list of potential users; however, the groups identified are normally the
most important.
Accounting system prepares its financial report which includes accounting
information in both internal and external report. Management accounting deal
with the information that is needed for the internal users and financial accounting
focus on the information that is needed for the external users.
Managerial accounting:
Provides internal decision makers who are charged with achieving the goals of
profitability and liquidity with information about financing, investing, and
operating activities.
Financial accounting:
Generates reports and communicates them to external decision makers so they
can evaluate how well the business has achieved its goals (romney,
http://www.accounting-tutorial.com/users-accounting-information, 2008).
The most important of these groups are shown in Figure 2.6.
37
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
Accounting
Shareholder
s
Financial
Accounting
Managerial
Accounting
External Users
of Accounting
Information
Internal Users
of Accounting
Information
Managemen
t
Creditors
Agencies
Employer
Investors
Taxing authority
Labor Unions
Supplier
Customer
FIGURE. 2
Owner
38
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
A. Internal users:
Parties inside the reporting entity or company who are interested in accounting
information.
Types of internal users include:
1. Management:
Management in every level of the business from director level to supervisor level
relies on accounting information to do their job properly. They all use the same
information for different purposes. For example, directors use it for strategic
purposes and middle management can use it to see if they are meeting their
financial targets.
2. Investors:
Investors generally provide money to individual or organization to start a
business. Before investing money investors generally want to know whether they
should invest or not or if they would invest to start a business now then how
much return they will get from their investment. The investors will decide based
on the financial accounting information of that business.
3. Employers:
Employers use accounting information for their own benefit, accounting
information help the employee to ensure their future benefit from the company
like pension, health provision, retirement benefit etc.
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
4. Owners:
Business owners want to know whether their funds are being properly used or
not. Accounting information helps them to know the profitability and the
financial position of the concern in which they have invested their funds.
B. External users:
Parties outside the reporting entity or company who are interested in the
accounting information.
Types of external users include:
1. Shareholders:
Shareholders use the balance sheet and profit and loss account produced by
limited companies to decide if they are going to increase or decrease their
holding.
2. Creditors:
Creditors (lenders) are generally focused on the information which is related to
the borrower before making a large loan such as the Bank (creditors) will want
information about the borrower regarding some criteria: the ability of the
borrower to repay the loan, the amount of assets and liabilities of the borrower,
evidence of income, tax policies and so on. The creditors will make the loan after
having this detail information through financial accounting statement of the
borrower.
3. Government Regulatory Agencies:
Government regulatory agencies like Federal and State Government Agencies
and Security and exchange commission want financial accounting information
which is related to the investors, business organization or any individuals, these
regulatory agencies want the information to know that whether the business
organization are following the business rules and regulation or not or whether the
40
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
investors are able to invest or make decision or not, Security and exchange
commission want accounting information to evaluate the financial accounting
disclosures of companies who sell their share or borrow money.
4. Taxing authority:
Taxing authority wants financial accounting information related to tax policies,
tax laws, amount of payable tax etc. from the individual or organization., taxing
authority wants financial accounting to know that the business organization are
following tax rules or not and their ability to pay income tax because income tax
is based on the financial accounting reports.
5. Labor unions:
Labor unions want accounting information to know their future salary.
6. Suppliers:
Suppliers want to know about company‘s future goals so that they can serve best
material in coming days.
7. Customers:
Sometimes customer also want to know about company on issues like warranty,
product development etc.
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
2.2.5 Effect of accounting information asymmetry in the stock
market
Information asymmetry can be defined to Conditions in which at least some
relevant information is known to some but not all parties involved. Information
asymmetry causes markets to become inefficient, since all the market participants
do not have access to the information they need for their decision making
processes opposite of information symmetry.
Another definition is a situation in which one party to a transaction has
information about the transaction to which the other party is not privy.
Asymmetric information may result in a bad deal for one party (often but not
always the buyer). To give an extreme example, the seller of real estate may
know that his property is lined with land mines. This would ordinarily result in a
(steep) drop in price, but if the buyer does not know this, it may not. Asymmetric
information is not as prevalent as it once was because of increased transparency
and legal requirements for disclosure, as well as better technology. Indeed,
trading securities with asymmetric information is often illegal. See also: Insider
trading, moral hazard, adverse selection.
Information asymmetry often caused the imbalance interests between market
participants, impacts social the principles of equity, justice and the allocation of
resources more efficient in the market. How the degree of information asymmetry
is in the stock market can be reflected from a perspective of a country's state of
development of the stock market. Information asymmetry is the root causes of
caused stock miss-pricing of the stock market, contrary to the "fair, just and
open" principle.
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
A stock issue is the representative of the property ownership of the proceeds of a
legal document under the law. Stock products is a special kind of commodity, its
main particularity is decided by the special value decision way. Securities
investment value depends primarily on its expected return to investment in shares
as an example; the expected return on investment in shares includes two parts:
the first part is expected dividends; the second part is expected capital gains.
Expected dividend depends on the size of two aspects: first, the company's future
earnings expectations; second, the company's future dividend distribution policy.
The company's future profit status and expected the financial situation of
companies now expected operating results, business environment and operational
decision-making is closely related. These factors in the stock market directly for
the information, transaction information on the control of the main level and
ability to judge the difference, formed asymmetric information, resulting in the
value of securities prices and the departure from.
Its main performance
information asymmetry: (1) information asymmetry between the government
and the listed company; (2) information asymmetry between listed companies
and investors; (3) information asymmetry between well-funded large
organizations and large the retail; (4) information asymmetry between the broker
and investor.
The so-called asymmetric information is that market transactions on the two sides
to deal with the subject or content of information in terms of quantity and quality
are not equal. Party transactions have frequently manifests itself even more
complete information, while the other has only less information, which may lead
to decision-making information vulnerable to mistakes in transactions, or
information to the advantage of information not conducive to the behavior of the
disadvantaged. In the market activity, as traders of the limited nature of
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
knowledge, information needs to spend search costs, as well as information
superiority to
the
monopoly
of
information, resulting
in
asymmetric
information is a widespread and long-standing economic phenomena. To sum
up, there are at least the following information asymmetries several forms:
1. The sources of information asymmetry
In the securities market, sources of information asymmetry exists both cases. The
stock market is a situation where the funding is to always listed companies than
investors a better understanding of the company's business, with more
information; another case is a stock market listed company is the issuer of its
shares, but it is also its shares to secondary market transactions. As traders in the
market where the potential of different information, which will certainly affect
their trading interests and transaction costs.
2. The asymmetric of time information
Commodity on the market or trading in the same side (as buyer or seller) in the
same market need to buy or sell the same goods or securities, Since receiving the
information commodities or securities of the time difference, they often lead to
early access to information relating to securities or commodities trading, to a
more active or more accurately, to make trading decisions earlier choice of
acquisition advantage, and access to information while late trading passively in
the transaction at a disadvantage, and even suffer losses.
3. The asymmetry of amount of information
Commodity on the market or trading in the same side (as buyer or seller) because
in the same market access to trading partners the number of different content, but
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
also lead to dealer transactions potential differences and transaction costs, interest
differences.
4. The asymmetry of quality of the information
Commodity on the market or trading in the same side (as buyer or seller) because
in the same market access to trading partners difference in the quality of
information, that is, the authenticity of different information, which is bound to
affect the interests of traders transactions and transaction costs.
5. Information confusion
Commodity on the market or trading in the same side (as buyer or seller)
acquisition of information objects, a value can be observed by the two mixed
together does not directly identify the components of the information, causing
confusion information, transactions are difficult to identify. For example,
companies listed on stock market earnings per share is the value can be
observed, it may be the enterprise income from continuing operations and a onetime dual mixture of income.
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
Causes of Asymmetric Information for the Securities Market
Information asymmetry is the root causes of caused securities miss-pricing of the
stock market, contrary to the "fair, just and open" principle and undermines the
effectiveness of the securities market and lead to market failure.
3.1 Subjective reasons
1. The interests of listed companies
At present, the
issuance
of
securities
have
higher
standards
and
requirements, the issuance of securities implement more stringent screening
system. Some enterprises have enough securities issuance, listing standards, but
in order to achieve "Physically," The purpose of resorting to deception,
concealment deception, a means of fictitious profits. To some enterprises in the
issuance of securities, issuing new shares or cash, develop higher prices to raise
more funds, often with the Securities underwriters, accountants offices, and other
intermediary agencies collusion, making false financial statements, manipulation
profit; At the same time, some organizations securities research institutions, the
author of a number of stock analysts who met with the company's articles,
comments and deceive investors.
2. Affiliated transactions of listed companies
listed companies are mostly come from the restructuring of state-owned
enterprises, state-owned shares, legal person shares, the public shares and other
equity coexist, and a large number of state-owned shares and legal person shares
is not presently listed in circulation, and circulation to the public only the total
average shares about one-third of equity. Shares segmentation caused
unreasonable shareholding structure, there has been "shares with different rights,
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CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
different stocks with profit" phenomenon, will easily lead to affiliated enterprises
and listed companies the linkages between trade, a "black-box operations," such
as fund-raising investment projects, issuing new shares and cash, the
reorganization of assets, procurement and sales and other areas often associated,
and investors are ignorant, and the results will inevitably lead to stock market
information asymmetry. In addition, many listed companies in turn, through its
group companies in the divestitures, asset restructuring and integration of the
listing, company and the listed company formed between the interests of the
unity between the opposition and are prone to the transactions. The numbers of
listed companies tend to adopt unfair and unreasonable disclosure of information,
contrary to the principle of public disclosure of information, thus easily lead to
stock market information asymmetry.
3. The existence of the information cost
Some securities markets are still a non-effective market, securities prices can not
reflect all the information in advance to have more access to information or
information investors receive exorbitant profit. However, access to information is
collected and the need to spend a certain costs, investors priority access to
information or to obtain more information, we must pay the cost information. For
investors, willing to obtain information on costs and expected benefits of
information, if the information costs than expected earnings, investors have
access to information the impetus to the contrary, if the expected return is less
than the cost of information, there is no driving force. Generally speaking, as
institutional investors have experienced professionals, and the strength of capital,
advanced communications facilities, they are often greater than the expected
return information costs and are willing to pay a certain cost information to
advance or have more access to information , more accurate information; And
47
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
individual investors, especially small and medium investors, often due to the
expected return is less than the cost information are reluctant to spend too much
time and money capital to access to information, this will result in asymmetric
information.
4. The appearance of insider dealing
Because insider trading may have a greater impact on the securities market, thus
countries in the world, especially the developed countries, the monitoring of
insider trading are very strict. For example China's insider trading regulation also
introduced a number of measures, but in the process of practice is the lack of
workability, and the insider trading is often difficult to define; At the same time,
the use of insider information for insider trading related personnel lesser
penalties, making insider trading between the costs and benefits of a serious
asymmetry. Such distorted information transmission channels of normal behavior
in the interests of investors at the same time, but also makes investors spent a
tremendous amount of energy he gave insider information to form the abuse of
information resources, resulting in the securities market information asymmetry.
3.2 Objective reasons
1. The lack of effective supervision of the securities market
At present, stock market regulators more, in addition to the China Securities
Regulatory Commission as a specialized regulatory body, but also the Ministry of
Finance, People's Bank, the SAC and other agencies from different angles on the
management and supervision of the securities market, thus forming the stock
market bulls monitoring the situation. This, to some extent, undermined the
authority of the Commission to enable it to effectively organize and carry
out securities market regulation. At the same time, various departments in the
48
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
formulation of policies and regulations, often from the interests of the sector,
making some lack of coordination between policies and regulations, and even in
conflict with each other, making the securities market at a loss. As our country's
lack of effective supervision of the securities market, which is the breeding of
information asymmetries.
2. Lack of Credit of listed companies
At present, the Credit Loss of listed companies for example in China are more
serious, and has become a universal phenomenon, to the healthy development of
the securities market has brought many negative effects. Lack of Credit listed
companies will often lead investors to collect information, identify information
and the rising costs of handling information, so that part of investors, especially
small and medium investors, the driving force decreased access to information,
this will easily lead to stock market information asymmetry.
3. A non-standard of securities intermediaries operating
Some securities intermediaries in the process of the operation of non-standard,
non-operation of frequently have disrupted the normal order of the securities
market. At the same time, some employees of securities intermediaries ethics and
the practice of poor quality, for themselves and their immediate interests, or
because of the pressure on the parties concerned, or for their own interests to
consider, as a listed company advice, the preparation of false financial statements
, or face false report float. The result will make the disclosure information of
listed companies will decreased the effectiveness, resulting in the securities
market information asymmetry.
49
CHAPTER 2 / IMPORTANCE OF ACCOUNTING DISCLOSURE
4. Imperfect corporate governance structure of listed companies
In recent years, to establish a modern enterprise system as the goal of the
corporate reform has been quite successful, but the corporate governance
structure of listed companies is not perfect, "due to the dominance of," "the
absence of the owner" still quite serious. The corporate governance structure is
imperfect, makes a listed company to disclose information, the more arbitrary, it
is difficult to guarantee the authenticity of the information, completeness and
timeliness of this will inevitably lead to stock market information asymmetry.
The main stock market transactions grasp the extent of the information and judge
the differences in the ability to form asymmetric information, resulting in the
value of securities prices and the departure from. Stock market information
asymmetry is a common phenomenon is not unique to securities market, is
widely found in all of the securities market. The stock market is the degree of
information asymmetry can be reflected from a perspective of a country's state of
development of the securities market.
Information asymmetry is caused securities miss-pricing the root causes of the
stock market, contrary to the "fair, just and open" principle and undermines the
effectiveness of the securities market and lead to market failure.
CHAPTER 3
ACTION RESEARCH AND HYPOTHESIS TESTING
51
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
INTRODUCTION
T
his chapter addresses to display and analyze of data research project
through to identify all methods and tools used to complete the research
and describe the research community appointed by the search tool used
and its components and check whether they are true to the test as well as
addresses the characterization of the sample and then choose the hypotheses.
The chapter is divided into:
3.1 Research Methodology
3.2 Society and the research sample.
3.3 Research tool
3.4 Validity and reliability of questionnaire
3.5 Statistical treatments used.
3.6 Describe the characteristics of the sample.
3.7 Testing the hypotheses.
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CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
3.1 Research Methodology
a. Method of analysis
Whereas this research aims to highlight the importance of accounting
information, and test the investors’ understanding and knowledge of
the
Palestine Securities Exchange of accounting information contained in financial
reports, and the extent of use of such information in the investment decision, we
will support this research on the descriptive analytical method as an one of the
most methods used in the study of social phenomena and humanity, but it fits
research topic and there has been relied on analysis of data collected on a
program of statistical analysis (SPSS), and the application of some of the tests
were
accepted
in
order
to
reach
some
proposed
conclusions
and
recommendations.
b. Methods of data collection
This research would depend on both the sources of secondary data and primary
data sources so as the following:
 Primary data sources: this research would ssubstantially depend on a
research questionnaire was designed and distributed to answer the research
questions for the purpose of knowing the importance of accounting
information to the investor on PEX, and the extent of adoption in the
investment decision, understanding, awareness and use them, and the
obstacles that hinder the use of such information.
 Secondary data sources: This research would base on some sources of
secondary data, represented mainly in the books, references, researches,
studies and specialized magazines and some related sites on the World
Wide Web (Internet), which dealt with such research, as well as brochures
and annual reports published by the Palestine Securities Exchange.
53
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
3.2 Society and the research sample
Research community is made up of groups of investors in the market of PEX, and
will include sample items from all categories of investors in the market .Online in
the Gaza Strip, and will be excluded categories of investors in the West Bank to
the difficulty of reaching them. The researcher distributed 40 questionnaires on a
sample of different categories from the society and the questionnaires was
distributed in Arabic language and then translated to English language.
The distribution process and the recovery of questionnaires was approximately
take (14) days after recovery and resolution reviewed and checked and coded and
then entering to the computer.
3.3 Research tool
The researchers used to collect data on two main types of data ,first books and
periodicals while the second is a questionnaire (Appendix 1 and 2), after viewing
the studies, it was designed the questionnaire in the light of the objectives of the
research and to answer the questions posed in the problem and research
hypotheses as appropriate and required.
Questionnaire was divided into two parts as follows:
Part I: It consists of several questions related to general information about the
investors and it contains on (11) paragraphs such as: age, academic qualifications
and field of activity and other information.
Part II: consists of five scopes as follows
The first scope: It contains (13) paragraphs deal with the degree of importance
of accounting information to rationalize the investment decisions and aims to
54
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
measure the extent of investor awareness of the importance of accounting
information.
The second scope: It contains (9) paragraphs deal with the degree of availability
of accounting information in financial reports and is designed to measure the
adequacy of accounting information in financial reports.
The third scope: It contains (9) paragraphs deal with the degree of using
accounting information to streamline the investment decision and are designed to
measure the extent of the use of accounting information to streamline the
investment decision.
The fourth scope: It contains (14) paragraphs deal with the degree of influence
of other information not contained in the financial statements on the investment
decision and aims to measure the existence and availability of other information
not included in the financial statements that may affect the investment decision.
The fifth scope: It contains(14) paragraphs deal with the obstacles using of
accounting information in the guiding of investment decision and it aims to
measure the existence and availability constraints of accounting information in
the guiding the investment decision.
3.4 Validity and reliability of questionnaire
Intended to be the questionnaire able of measuring and designed to achieve
the objectives of the research, divided in two ways:
a) Content sincerity: The researchers have prepared a questionnaire of the
research by concerning the extent of investors' perception on the PEX for the
importance of the use of accounting information for guiding their investment
decisions, and through access to previous studies and reference theory on this
subject, then it were presented questionnaire in its initial to some academics and
55
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
those who have experience and to share investment in the financial market in
order to be guided by their opinions of the paragraphs contained in the
questionnaire. The researchers took the views and tips of professionals in some
paragraphs that are not related to the subject of questionnaire, as amended
paragraphs, until the picture was reached the final of the questionnaire. It was
possible to questionnaire distribution on research sample that represented in
investors in the market for the Palestine Securities Exchange in the Gaza Strip.
b) sincerity of internal consistency: Honestly it was Meant by the internal
consistency is the consistency of each paragraph of the resolution with the
domain they belong to this paragraph, it has been verified the authenticity of the
internal consistency by finding the coefficients of linear correlation of Pearson
between each paragraph of the questionnaire and the total score for the domain
that belongs to this paragraph, significantly it has been positive results, where the
correlation coefficients indicated that there are various internal consistency of the
paragraphs with areas that belong to it and following the various correlation
coefficients of each paragraph with the domain to which it belongs:
TABLE NO. 2
Pearson correlation coefficients between the paragraphs of the first scope on the
investor comprehend the importance of accounting information to guide the
decision to invest in the PEX:
No
(1)
Item
The provision of accounting information and use when
making investment decisions is essential.
Pearson's
correlation
coefficient
The level
of statistical (sig)
0.791
0
56
(2)
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
In the light of rapid developments and the availability
of multiple alternatives, the provision of accounting information to
help in making investment decisions is inevitable.
0.756
0
A-greater effectiveness
0.770
0
B -A lower cost.
0.688
0
C-less time.
0.642
0
D-Quality performance.
0.761
0
(4)
Advantages of accounting information provided when making
investment decisions to increase the capacity and skills of makers.
0.750
0
(5)
Providing accounting information when making investment decisions
to create integrated information systems utilized to streamline
decision-making processes
0.681
0
(6)
Using accounting information in making investment decisions to
reduce the degree of risk.
0.634
0
(7)
The use of accounting information to rationalize investment decisions
affect the nature and quality of the stock investor
0.616
0
(8)
The use of accounting information to achieve a higher degree of
integration and interrelationship between investment decisions
0.758
0
(9)
The use of accounting information for decision-making provides the
capacity and skills sufficient to achieve the objectives of investment
optimally.
0.719
0
(10)
The use of accounting information to rationalize investment decisions
provides a set of regulatory measures to ensure the safety of the
decisions taken and detect errors if they occur
0.700
0
Achieve rely on accounting information when making decisions
Investment:
(3)
The level of statistical significance when α = 0.05
Observed through the previous table that all the factors Pearson correlation between each
paragraph of the first area, amounting to (13) paragraphs and the total score for the scope
statistically significant at the level of α = 0.05 .This refers to the internal
consistency of the large paragraphs of the first area.
57
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
TABLE NO. 3
Pearson correlation coefficients between the paragraphs of the second area on
the availability of accounting information in financial reports to rationalize the
investment decision.
No
Item
Pearson's
correlation
coefficient
The level
of statistical (sig)
(1)
Companies provide information on retained earnings.
0.748
0
(2)
Companies provide information on the proportion
of planned distributions to shareholders.
0.742
0
(3)
Companies provide information on changes in the capital.
0.797
0
(4)
Companies provide information on earnings per share.
0.731
0
(5)
Companies provide information on the fair value of the items of
assets and liabilities.
0.835
0
(6)
Companies provide information on the most gains confirmation or at
least confirmation of the potential loss.
0.836
0
(7)
Companies provide information about the cumulative impact of
the change of accounting policies
0.735
0
(8)
Companies provide information on reports of periodic
financial statements.
0.734
0
(9)
Companies provide information on the auditor's assessment of
the efficiency of management in the preparation of budgets.
0.746
0
The level of statistical significance when α = 0.05
Observed through the previous table that all the factors Pearson correlation
between each paragraph of the second area, amounting to (9) paragraphs and the total
score for the scope statistically significant at the level of α = 0.05. This refers to the
internal consistency of the large paragraphs of the second area.
58
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
TABLE NO. 4
Pearson correlation coefficients between the paragraphs of the third area on the
degree of use of accounting information for rationalizing investment decision.
No
Item
Pearson's
correlation
coefficient
The level
of statistical (sig)
(1)
Profit and loss account.
0.779
0
(2)
The balance sheet.
0.826
0
(3)
Statement of Cash Flows.
0.793
0
(4)
Statement of changes in equity.
0.844
0
(5)
Reports of the auditor.
0.792
0
(6)
Another list
0.630
0
(7)
The use of accounting information to
compare investment alternatives to choose the best alternative.
0.810
0
(8)
The use of accounting information to make sure that the
rationalization of investment decision taken.
0.749
0
(9)
The use of accounting information to correct decisions, promote
and ensure its effectiveness.
0.814
0
The level of statistical significance when α = 0.05
Observed through the previous table that all the factors Pearson correlation
between each paragraph of the third area, amounting to (9) paragraphs
and the total score for the scope statistically significant at the level of α = 0.05.
This refers to the internal consistency of the large paragraphs of the second area
59
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
TABLE NO. 5
Pearson correlation coefficients between the paragraphs of the fourth area on
the degree of the impact of other information are contained in the financial
statements on the investment decision.
No
Item
Pearson's
correlation
coefficient
The level
of statistical (sig)
(1)
Information from the tips of intermediaries.
0.604
0
(2)
Information from the rumors.
0.441
0
(3)
Information from the tips of friends and relatives.
0.397
0
(4)
Information from market bulletins
0.591
0
(5)
Information from government literature.
0.619
0
(6)
Information from magazines and newspapers.
0.664
0
(7)
Information from visiting companies.
0.761
0
Information from the companies site on the World Wide
Web (Internet)
0.690
0
Directory information from the financial indicators of companies
0.747
0
Publishing special reports other than the management financial
statements and reports.
0.761
0
(11)
Use the style of financial analysis as a tool of decision-making.
0.599
0
(12)
Changes in senior management of companies.
0.720
0
(13)
Notes to other external auditor.
0.660
0
(14)
Board decisions on future expansion plans and the opening of new
branches.
0.457
0
(8)
(9)
(10)
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CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
The level of statistical significance when α = 0.05
Observed through the previous table that all the factors Pearson correlation
between each paragraph
of
the forth
area,
amounting
to (14) paragraphs
and the total score for the scope statistically significant at the level of α = 0.05.
This refers to the internal consistency of the large paragraphs of the second area.
TABLE NO. 6
Pearson correlation coefficients between the paragraphs of the scope five on
constraint the use of accounting information in the rationalization of investment
decision.
No
Item
Pearson's
correlation
coefficient
The level
of statistical (sig)
(1)
High cost of obtaining this information.
0.631
0
(2)
Failure to provide accurate information and the required speed.
0.486
0
Absolute lack of confidence in the methods of preparing accounting
information.
0.650
0
Cannot use accounting information to predict in the future.
0.656
0
The difficulty of comparing investment alternatives because of the
different methods of preparation and disclosure
0.653
0
A - Lack of practical experience.
0.607
0
B - lack of knowledge matters and accounting information.
0.683
0
C - after the academic qualification for the accounting side.
0.636
0
D - Non-functional skills to deal with accounting information.
0.673
0
(3)
(4)
(5)
The lack of the use of accounting information is up to the following
reasons:
(6)
61
(7)
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
Weak control on the outcome of investment decisions without relying
on accounting information.
0.706
0
Not to publish periodic reports ..
0.649
0
(9)
Failure to regulate the accounting and auditing profession properly in
Palestine.
0.693
0
(10)
Society's perception of improper accounting and accounting
information.
0.706
0
(11)
There is no clear law to the Palestine regarding the
accounting information.
0.673
0
(8)
The level of statistical significance when α = 0.05
Observed through the previous table that all the factors Pearson correlation
between each paragraph
of
the fifth
area,
amounting
to (11) paragraphs
and the total score for the scope statistically significant at the level of α = 0.05.
This refers to the internal consistency of the large paragraphs of the second area.
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CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
In addition to the above has been calculated Pearson's correlation coefficient
between the degree of each of the five areas of questionnaire and the total score
of the identification and that, as in the following table:
TABLE NO. 7
Pearson correlation coefficients for the questionnaire of the five areas with the
total score of the questionnaire
No
Item
Pearson's
correlation
coefficient
(1)
The investor comprehend the importance of accounting information to
guide the decision to invest in the PEX :
0.677
0
(2)
The availability of accounting information in financial reports to
rationalize the investment decision.
0.704
0
(3)
The degree of use of accounting information for
rationalizing investment decision
0.802
0
(4)
The degree of the impact of other information is contained in the
financial statements on the investment decision.
0.791
0
(5)
Constraint the use of accounting information in the rationalization
of investment decision.
0.723
0
The level
of statistical (sig)
The level of statistical significance when α = 0.05
From the above it is clear that the correlation coefficients in tables in all areas of
the questionnaire of the five statistically significant and highly strong at the level
of statistical significance (0.05)
Which means that the scores of respondents in each area of the questionnaire
linked statistically indicative of their grades in overall and this
grades in overall and this questionnaire refers to the sincerity of the internal
consistency check to identify research and strong.
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CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
3.5 Statistical treatments used
The researchers did enter questionnaire’s data through SPSS and Statistical tests
were used as follows:
 Mean and median and percentages.
 Pearson correlation coefficient.
 Intensity reference test (Sign Test)
3.6 Description of the characteristics of the sample
We have been allocated a set of general questions to know the characteristics of
the research sample, to provide a basis for the analysis of search results and
through the following results:
1-Age
We divide the age into four categories and we observed that the largest categories from (31 to 40 years)
which contain 39.40% from the sample as shown below:
Sample distribution by age:
TABLE NO. 8
Age groups
Frequency (number)
Percentage
20-30
12
% 31.10
31-40
16
% 39.40
41-50
7
% 16.70
More than 50
5
% 12.90
Total
40
%100
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CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
2- Qualification:
The table below shows that investors who hold Bachelor’s degree formed the largest
proportion of the sample number was 24, where an investor or by 58.90% of the sample,
TABLE NO. 9
Categories
of Qualifications
Frequency (No.)
Percentage
High School or less
4
% 10.10
Diploma
5
% 13.20
Bachelor
24
% 58.90
Postgraduate studies
7
% 17.80
Total
40
%100
3-Scientific specialization:
The table below shows that investors specialized in accounting formed the largest
proportion of the sample number was 17, where an investor or by 34.40% of the sample,
TABLE NO. 10
specialization
Frequency (No.)
Percentage
Accounting
17
% 43.40
Financial and banking
5
% 12.30
Management
7
% 17.20
Economy
2
% 4.90
Other
9
%22.10
Total
40
%100
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CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
4-The nature of investor business
The table below shows the number of investor who work on public sector contain 53% form
the sample while the investor who work in private sector contains 18.9% ,and the other
distributed on others business
TABLE NO. 11
Type of business
Frequency
Percentage
Employees in the public sector
8
% 18.90
Employees in the private sector
21
% 53.00
Businessman/woman
3
% 8.30
Dealer
4
% 9.10
Other
4
% 10.60
Total
40
%100
5-The number of years you invest
The table below shows that the group f investors who work in ( year or less ) are the largest
group among others by percent of % 26.90
TABLE NO. 12
Type of business
Frequency
Percentage
Less than a year
13
% 31.50
From 1 to less than 3 years
11
% 26.90
From 3 to less than 5 years
5
% 11.50
From 5 to less than 7 years
3
% 8.50
7 years and more
8
% 21.05
Total
40
%100
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CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
6-Estimated the size of your investment in PEX dinar
The table below shows that the group f investors who invest in (Less than 15000) are the
largest group among others by percent of % 22.30
TABLE NO. 13
Type of business
Frequency
Percentage
Less than 15000
21
% 51.80
From 15001 to less than 30000
9
% 22.30
From 30001 to less than 50,000
4
% 9.80
From 50001 to 100000
3
% 7.10
100001 and more
4
% 8.90
Total
40
%100
7-The extent to which your conviction of the importance of the use of
accounting information to investment
a general indication of the extent of belief in the importance of the use of accounting
information in order to make a decision
TABLE NO. 14
Type of business
Frequency
Percentage
Very important
25
% 63.60
important
11
% 28.00
Medium importance
2
% 5.30
A few important
1
% 2.30
Not important
1
% 0.80
Total
40
%100
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CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
8-The adequacy of accounting information in financial reports to
rationalize investment decisions
The adequacy of the accounting information contained in financial reports, where the form
of investors who have confirmed that the adequacy of accounting information in financial
reports to rationalize investment decisions (of 41% or more) 29 investors form 40
TABLE NO. 15
Type of business
Less than 20%
Frequency
4
Percentage
% 9.30
21%-40%
7
% 17.10
41%-60%
13
% 31.80
61%-80%
8
% 20.90
81% and more
8
% 20.90
Total
40
%100
9- The degree of confidence in the auditor's report
Table below shows a general indication of the extent of the degree of confidence in
the auditor's report, where the form of investors who have confirmed that the degree
of confidence in the auditor's report (from 61% or more) 19 investors from 40
TABLE NO. 16
Type of business
Less than 20%
Frequency
3
Percentage
% 8.50
21%-40%
6
% 13.80
41%-60%
12
% 29.20
61%-80%
10
% 25.40
81% and more
9
% 23.10
Total
40
%100
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CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
10- The degree of confidence in the rationalization of accounting
information in investment decisions
The form of investors who have confirmed that the degree of confidence in the accounting
information in the rationalization of investment decisions (of 61% or more) 17 investors form
40 which means the investors rely on the accounting information
TABLE NO. 17
Type of business
Frequency
Percentage
Less than 20%
3
% 7.70
21%-40%
9
% 23.10
41%-60%
11
% 28.50
61%-80%
12
% 29.20
81% and more
5
% 11.50
Total
40
%100
11- The degree of confidence in the bulletins Palestine Securities
Exchange
Investors who have confirmed the confidence in the market Palestine’s publications 22
investors which approved that the investors rely on the Palestine’s publications
TABLE NO. 18
Type of business
Frequency
Percentage
Less than 20%
2
% 6.20
21%-40%
6
% 13.80
41%-60%
10
% 24.60
61%-80%
13
% 33.10
81% and more
9
% 22.30
Total
40
%100
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CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
3.7 Testing the hypotheses
To test the research hypotheses we have use a (Sign Test), which is an
alternative of t-test for one sample, since it is used to check the conformity of a
median of
sample
selected
from
the
statistical
community,
and
the test signal does not depend on the value of the difference between grades
and the
general
median,
but deals
only with signals
from where
it
is positive, negative or zero, and take that is not included in the statistical
treatment because it is neutral.
-Measurement of questionnaire
The measurement applied in the research questionnaire as follows:
Very
much
Significantly
Moderately
A weak
A very weak
5
4
3
2
1
1- Test of the first hypothesis:
The investor in PEX not realize the importance of accounting information in
the rationalization of investment decision
In order to test the previous hypothesis we used the follow:
H0: M ≤ 3
H1: M > 3
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CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
Whereas the H0 means that investors not realize the important of accounting
information (less than or equal 3), while the substitutive hypothesis H1 referred
that the investors realized the important of accounting information (more than
3).
TABLE NO. 19
Result of a (Sign Test), for the table of the first area
The first scope
The
number of
negative
signals
The
number
of
positive
signals
The
number
of zeros
Total
The value
of Z
Sig
The value
of general
median
116
2
14
132
10.402-
0
4
The degree of importance of
accounting information to
rationalize investment
decisions in the following
paragraphs
The level of statistical significance when α = 0.05
From the previous table we can see that the value of Z is statistically
significant at α = 0.05, which means that the median of the individual answers
on the first table higher than the from the median used as a measurement which
is (3), and enhance the result the value of general median (4) which means
Significantly according to the measurement used in the questionnaire. Thus we
conclude from
this
the
respondents believe
the
use
of accounting
information to realize their investments is significant from their point of
view. Accordingly, we reject H0 which stats that that investors not realize the
important of accounting information and accept the hypothesis H1 that the
investors realized the important of accounting information.
71
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
2- The accounting information contained in financial reports is insufficient
to rationalize the investment decision.
In order to test the previous hypothesis we used the follow:
H0: M ≤ 3
H1: M > 3
Whereas the H0 means that the accounting information contained in financial
reports is insufficient to guide in the investment decision (less than or equal 3),
while the substitutive hypothesis H1 referred that the accounting information
contained in financial reports is sufficient to rationalize the investment
decision (more than 3).
TABLE NO. 20
Result of a (Sign Test), for the table of the second area
The second scope
The
number
of
negative
signals
The
number
of
positive
signals
The
number
of zeros
Total
The value
of Z
Sig
The value
of general
median
67
12
53
132
6.075-
0
4
the availability of accounting
information in the financial
reports to guide
the investment decisions
The level of statistical significance when α = 0.05
From the previous table we can see that the value of Z is statistically
significant at α = 0.05, which means that the median of the individual answers
on the second table higher than from the median used as a measurement which
is (3), and enhance the result the value of general median (4) which means
Significantly according to the measurement used in the questionnaire. Thus we
conclude from this, the respondents believe that the firm provide different
72
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
accounting information
to guide their investments is significant from their
point of view. Accordingly, we reject H0 which stats the accounting
information contained in financial reports is insufficient to guide in the
investment decision ,and accept the hypothesis H1 that the accounting
information contained in financial reports is sufficient to rationalize the
investment decision.
3- There is no other information not included in the financial statements
affect the investment decision.
In order to test the previous hypothesis we used the follow:
H0: M ≤ 3
H1: M > 3
Whereas the H0 means that no other information not included in the financial
statements affect the investment decision (less than or equal 3), while the
substitutive hypothesis H1 referred that there is other information not included
in the financial statements affect the investment decision (more than 3).
TABLE NO. 21
Result of a (Sign Test), for the table of the third area
The third scope
The
number
of
negative
signals
The
number
of
positive
signals
The
number
of zeros
66
12
54
Total
The
value
of Z
Sig
The value
of general
median
132
6.001-
0
3.25
the degree of influence of other
information is contained in the
financial statements on
the investment decisions
The level of statistical significance when α = 0.05
73
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
From the previous table we can see that the value of Z is statistically
significant at α = 0.05, which means that the median of the individual answers
on the third table higher than from the median used as a measurement which is
(3), and enhance the result the value of general median (4) which means
Significantly according to the measurement used in the questionnaire. Thus we
conclude from this, the respondents believe that there is other information not
included in the financial statements affect the investment decision is significant
from their point of view. Accordingly, we reject H0 which stats that there is no
other information not included in the financial statements affect the investment
decision, and accept the hypothesis H1 referred that there is other information
not included in the financial statements affect the investment decision.
5-There is some obstacles limit in using of accounting information in guiding
of the decision to invest in PEX.
In order to test the previous hypothesis we used the follow:
H0: M ≤ 3
H1: M > 3
Whereas the H0 means that there is no obstacles limit in using of accounting
information in guiding of the decision to invest in PEX. (less than or equal 3),
while the substitutive hypothesis H1 referred that there is obstacles limit in
using of accounting information in guiding of the decision to invest in PEX
(More than 3).
74
CHAPTER 3 / ACTION RESEARCH AND HYPOTHESIS TESTING
TABLE NO. 22
Result of a (Sign Test), for the table of the forth area
The third scope
The
number
of
negative
signals
The
number
of
positive
signals
The
number
of zeros
68
11
53
Total
The value
of Z
Sig
The value
of general
median
132
6.300-
0
4
The degree constraints limit the
use of accounting information in
the rationalization of investment
decisions
The level of statistical significance when α = 0.05
From the previous table we can see that the value of Z is statistically
significant at α = 0.05, which means that the median of the individual answers
on the forth table higher than from the median used as a measurement which is
(3), and enhance the result the value of general median (4) which means
Significantly according to the measurement used in the questionnaire. Thus we
conclude from this, the respondents believe that there is some obstacles limit in
using of accounting information in guiding of the decision to invest in PEX is
significant from their point of view. Accordingly, we reject H0 which stats that
there is no obstacles limit in using of accounting information in guiding of the
decision to invest in PEX, and accept the hypothesis H1 referred that there is
obstacles limit in using of accounting information in guiding of the decision to
invest in PEX.
CHAPTER 4
RESULTS AND RECOMMENDATIONS
76
CHAPTER 4 / RESULTS AND RECOMMENDATIONS
First: Results
Based on the theoretical and field study carried out by the researchers about
(Role of accounting disclosure in guiding the investment decisions in PEX), the
researchers concluded the following results:
1. Investors in PEX realizes the importance of using accounting information
to guide their investment decisions, and returns that importance of
accounting information to the following benefits:
a. Accounting information achieved the effectiveness and less cost and
time and quality in performance and reduction of the degree of risk in
investment and achieves a higher degree of integration and
interdependence between the investment decisions.
b. The providing of accounting information works to increase the capacity
and skills of decision makers to achieve the desired goals of
investments optimally, and the establishment of integrated information
systems and using them to guide the decision-making processes, and
provides a set of control procedures to ensure the safety of the decisions
taken and revealed errors in the event of their occurrence.
2. The accounting information contained in financial reports is sufficient to
rationalize the investment decision and provide the following financial
reports:
a. Retained earnings, the percentage of scheduled distributions to
shareholders, changes in the capital, earnings per share, the fair value of
the items of assets and liabilities, the auditor's assessment of the
management efficiency in the preparation of budgets, information for
periodic financial reports audited, and confirmation of gains achieved
or at least confirmation of the potential loss.
77
CHAPTER 4 / RESULTS AND RECOMMENDATIONS
b. The companies do not provide in the financial reports the information
on the cumulative impact of the change of accounting policies.
3. The Investors use the accounting information to rationalize the decision
to invest significantly in PEX, and they are used lists of the following:
a. Income statement, statement of financial position (B.S), cash flow
statement, statement of changes in equity, and auditor's report.
b. The investor does not use any other statements when making
investment decision.
4. There is other information contained in the financial statements affecting
the decision to invest in PEX,
a. Information from the advice brokers, and information from special
bulletins of the market, and information from government literature,
and information from magazines and newspapers, and information from
visiting companies, and information from companies on Internet, and
information from financial indicators of companies.as well as, reports of
management other than the financial statements and reports, and board
of directors decisions about plans for future expansion and the opening
of new branches, and changes in top management of companies, and the
observations of other external auditor.
b. The information that its source of rumors as well as those that come
from friends and relatives advice do not effect on investment decision.
5. There are obstacles that restrict the use of information in PEX to guide
the investment decision, and these obstacles are:
a. The high cost of access to accounting information, and the lack of
accounting information that
required accurate and speed, and the
absolute of lack of confidence in the methods of preparing accounting
information, and cannot use accounting information to predict the
78
CHAPTER 4 / RESULTS AND RECOMMENDATIONS
future, and the difficulty of comparing investment alternatives because
of the different methods of preparation and disclosure.
b. Lack of practical experience of the investors, and the weakness of
practical knowledge between matters and accounting information, and
estrangement of academic qualification for the practical side of
accounting, and non-functional skills to deal with accounting
information.
c. Non-publish periodic reports and the lack of instructions disclosure that
is more explicit in the Palestine market law with respect to accounting
information.
Second: Recommendations
In the light of the findings of the study and to highlight the importance of
accounting information and its role in guiding of investment decision on the
PEX, the researchers suggest a set of recommendations, which are:
1. The need to enhance awareness of investors and their conviction of the
importance of using information and inform them of the benefits of such
use.
2. Encourage investors to increase their knowledge of accounting information
nature and its impact on the decisions and how they are used for this
purpose.
3. Attention to publishing market information and substantive accounting
information of official newspapers independently.
4. Increase the confidence and convictions of investors in the accounting
information and methods of preparation, and by increasing awareness of
the investors.
79
CHAPTER 4 / RESULTS AND RECOMMENDATIONS
5. Attention to the function of financial statements' analysis to help investors
who lack the accounting expertise to provide advice and guidance to them
and through the establishment of financial institutions engaged in this task.
6. Motivate investors to join training courses to gain skills and increase the
functional and practical experience and knowledge between matters and
accounting information.
7. Select a consolidated date to publish financial statements for making all
comparisons between units, including the trade-off by investors.
8. Enhance Palestine market law by instructions disclosure of accounting
information that are more clearly through requiring companies with these
instructions.
9. Publish periodic reports (quarterly) to provide continuous information to
help investors in assessing the performance of companies and then make
investment decisions.
10. Provision of accounting information that are required accurate and quick.
11. Cost reduction of access to accounting information.
12. Providing sufficient information on the change of accounting policies and
their impact on the company.
13. Use prediction of accounting information in the future.
14. Standardization of preparation methods and disclosure for easily
comparison of investment alternatives.
15. Linking academic qualification aspect of accounting practice.
Bibliography
(2009). Retrieved from
http://college.hmco.com/instructors/catalog/walkthroughs/pdf/061862676x_ch01.pdf.
Palestine Exchange. (2012, 2 16). Retrieved from Palestine Exchange web site:
http://www.pex.ps/PSEWebSite/English/AboutPSE.aspx?TabIndex=0
Abdul Razak, H. a.-H. (1993). The extent of the use of accounting information in management decisions
related to my job of planning and control. Jordan.: University of Jordan .
Al rawe, Khaled waheb. (1999). financial and money markets . Aman: Dar Al-mouasar for publish .
Ed Jones, A. &. (2011). http://www.hipaa.com/2009/05/the-definition-of-disclosure/. Retrieved from
hipaa.com.
Farlex, T. f. (2011). http://financial-dictionary.thefreedictionary.com/Disclosure. Retrieved from The
free dictionary by farlex.
Fayoumi, M. (1992). Introduction to Electronic Computers. Alexandria: founder of the Youth League.
Frederick, R. (2012). A CORPORATE GOVERNANCE TOOL THAT REALLY WORKS.
GAAP, W. (2012). Willy GAAP.
Guruswami, R. (2010). Investment triangle – three compromising objectives. SiliconIndia, India's , 2022.
hkmb. (n.d.). Retrieved from
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jose, o. (2011). http://finance.mapsofworld.com/investment/meaning.html. Retrieved from Maps of
World Finance.
Mclaney, E. &. (2010). Investment essentials.
Mohammed. (2000). the risk of depending on accounting information in the evaluation. Alexandrina:
the universtiy house for publshing.
Moller.jack. (2009). Retrieved from
http://college.hmco.com/instructors/catalog/walkthroughs/pdf/061862676x_ch01.pdf.
Nuttall, J. (2012). What Is Accounting Disclosure?
romney. (2008). Retrieved from http://www.accounting-tutorial.com/users-accounting-information.
romney. (2008). Retrieved from http://www.accounting-tutorial.com/users-accounting-information.
A
romney. (2008). Retrieved from http://www.accounting-tutorial.com/users-accounting-information.
Saudagaran, S. &. (2003). Economic integration and accounting harmonization options in emerging
markets.
Scott, D. L. (2003). http://financial-dictionary.thefreedictionary.com/Disclosure. Retrieved from The
free dictionary.
www.pex.ps. (n.d.).
yousef, A. (2010). Full disclosure and informative disclosure. A-l thwra.
B
APPENDIX
THE ISLAMIC UNIVERSITY - GAZA
FACULTY OF COMMERCE
ACCOUNTING DEPARTMENT
Appendix (1)
Questionnaire
‫الجـامعة اإلسالميـ ـ ـ ــة – غزة‬
‫ك ـ ـ ـل ـ ـ ـ ـية التـج ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ــارة‬
‫قس ـ ـ ـ ـ ـ ـ ـ ـ ـ ـم المحاسب ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ــة‬
Dear Mr. /……………………
The researchers seek through this study to determine the investors' perception to the
importance of using accounting information in guiding their investment decisions.
A requirement to obtain bachelor's degree in Accounting in English from the Islamic
University- Gaza
We hope that you will kindly read what is stated in this Questionnaire carefully and
answer what is stated objectively and mark the answer by put (√) which express your
point of view.
Best regard,,,
Researchers:
Ahmed A. AbuMutair
Khalid M. Alnairab
II
Part I: General Information:
(1) Age:
A
From 20 to 30 years
B
From 31 to 40 years
C
From 41 to 50 years
D
50 years and more
B
D
Diploma
Postgraduate studies
(2) Qualification:
A
C
High School or less
Bachelor
(3) Scientific specialization:
A
Accounting
B
Financial and banking
C
Management
D
Economy
E
Other (please mention ... ... ... ... ... ... ... ... ... ... ... ... ...)
(4) The nature of your business:
A
Employees in the public sector
B
Employees in the private sector
C
Businessman/woman
D
Dealer
E
Other (please mention ... ... ... ... ... ... ... ... ... ... ... ... ...)
(5) The number of years you invest:
A
Less than a year
B
From 1 to less than 3 years
C
From 3 to less than 5 years
D
From 5 to less than 7 years
E
7 years and more
III
6) Estimated the size of your investment in PSX dinar (optional):
(
A
Less than 15000
B
From 15001 to less than 30000
C
E
From 30001 to less than 50,000
100001 and more
D
From 50001 to 100000
(7) The extent to which your conviction of the importance of the use of
accounting information to investment
A
C
Very important
Medium importance
E
Not important
B
D
important
A few important
(8) The adequacy of accounting information in financial reports to
rationalize investment decisions:
A
Less than 20%
B
21%-40%
C
E
41%-60%
81% and more
D
61%-80%
(9) The degree of confidence in the auditor's report:
A
C
E
Less than 20%
41%-60%
81% and more
B
D
21%-40%
61%-80%
(10) The degree of confidence in the rationalization of accounting
information in investment decisions:
A
C
E
Less than 20%
41%-60%
81% and more
B
D
IV
21%-40%
61%-80%
(11) The degree of confidence in the bulletins Palestine Securities Exchange:
A
C
E
Less than 20%
41%-60%
81% and more
B
D
21%-40%
61%-80%
Part II:
First: select the degree of importance of accounting information to rationalize investment
decisions in the following paragraphs:
No
(1)
(2)
Item
Very
much
The provision of accounting
information and use when
making investment decisions is
essential.
In the light of rapid developments and
the availability of multiple alternatives,
the provision of accounting
information to help in
making investment decisions is
inevitable.
Achieve rely on accounting
information when making decisions
Investment:
A-greater effectiveness
(3)
B -A lower cost.
C-less time.
D-Quality performance.
(4)
(5)
Advantages of accounting information
provided when making investment
decisions to increase the capacity and
skills of makers.
Providing accounting information
when making investment decisions to
create integrated information systems
utilized to streamline decision-making
V
Significantly Moderately A weak
A very
weak
processes
(6)
(7)
(8)
(9)
(10)
Using accounting information in
making investment decisions to reduce
the degree of risk.
The use of accounting information to
rationalize investment decisions affect
the nature and quality of the stock
investor
The use of accounting information to
achieve a higher degree of integration
and interrelationship between
investment decisions
The use of accounting information for
decision-making provides the capacity
and skills sufficient to achieve the
objectives of investment optimally.
The use of accounting information to
rationalize investment decisions
provides a set of regulatory measures
to ensure the safety of the decisions
taken and detect errors if they occur
Second: Select the availability of accounting information in the following financial reports to
rationalize investment decisions
No
(1)
(2)
Item
Companies provide information
on retained earnings.
Companies provide information on the
proportion of planned distributions to
shareholders.
(3)
Companies provide information
on changes in the capital.
(4)
Companies provide information
on earnings per share.
Companies provide information on
the fair value of the items of assets and
liabilities.
Companies provide information on the
most gains confirmation or at least
confirmation of the potential loss.
(5)
(6)
Very
much
VI
Significantly Moderately A weak
A very
weak
(7)
(8)
(9)
Companies provide information
about the cumulative impact of
the change of accounting policies
Companies provide information on
reports of periodic
financial statements.
Companies provide information
on the auditor's assessment of
the efficiency of management in the
preparation of budgets.
Third: Select the degree of your use of accounting information to rationalize the investment
decisions in the following paragraphs:
No
Item
(1)
Income statement.
(2)
Statement of financial position.
(3)
Statement of Cash Flows.
(4)
Statement of changes in equity.
(5)
Auditor report.
(6)
Another list
(7)
The use of accounting information to
compare investment alternatives to
choose the best alternative.
(8)
The use of accounting information to
make sure that the rationalization of
investment decision taken.
(9)
The use of accounting information to
correct decisions, promote
and ensure its effectiveness.
Very
much
VII
Significantly Moderately A weak
A very
weak
Fourth: Select the degree of influence of other information is contained in the financial
statements on the investment decisions in the following paragraphs:
No
(1)
(2)
(3)
(4)
Item
Information from the tips of
intermediaries.
Information from the rumors.
Information from the tips of friends
and relatives.
Information from market bulletins
(5)
Information from government
literature.
(6)
Information from magazines
and newspapers.
(7)
Very
much
Information from visiting companies.
(8)
Information from
the companies site on the World Wide
Web (Internet)
(9)
Directory information from the
financial indicators of companies
(10)
Publishing special reports other than
the management financial statements
and reports.
(11)
Use the style of financial analysis as a
tool of decision-making.
(12)
Changes in senior management of
companies.
(13)
Notes to other external auditor.
(14)
Board decisions on future expansion
plans and the opening of new branches.
VIII
Significantly Moderately A weak
A very
weak
Fifth: Select the degree constraints limit the use of accounting information in the rationalization
of investment decisions:
No
Very
much
Item
(1)
High cost of obtaining this information.
(2)
Failure to
provide accurate information and the
required speed.
Absolute lack of confidence in the methods
of preparing accounting information.
(3)
(4)
(5)
Significantly Moderately
Cannot use accounting information to
predict in the future.
The difficulty of comparing investment
alternatives because of the different
methods of preparation and disclosure
The lack of the use of accounting
information is up to the following reasons:
A - Lack of practical experience.
(6)
(7)
(8)
B - lack of knowledge matters
and accounting information.
C - after the academic qualification for the
accounting side.
D - Non-functional skills to
deal with accounting information.
Weak control on the outcome of investment
decisions without relying on accounting
information.
Not to publish periodic reports ..
(9)
Failure to regulate the accounting and
auditing profession properly in Palestine.
(10)
Society's perception of improper accounting
and accounting information.
(11)
There is no clear law to the
Palestine regarding the
accounting information.
Best regard,,,
IX
A
weak
A very
weak
‫الجـامعة اإلسالميـ ـ ـ ــة – غزة‬
‫ك ـ ـ ـل ـ ـ ـ ـية التـج ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ــارة‬
‫قس ـ ـ ـ ـ ـ ـ ـ ـ ـ ـم المحاسب ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ـ ــة‬
‫)‪Appendix (2‬‬
‫استبانه‬
‫‪THE ISLAMIC UNIVERSITY - GAZA‬‬
‫‪FACULTY OF COMMERCE‬‬
‫‪ACCOUNTING DEPARTMENT‬‬
‫السيد ‪ .................................................... /‬المحترم‬
‫يسعى الباحثان من خالل هذه الدراسة إلى معرفة مدى إدراك المستثمرين في سوق فلسطين لألوراق المالية ألهمية‬
‫استخدام المعلومات المحاسبية لترشيد ق ارراتهم االستثمارية‪ ،‬كمتطلب لنيل درجة البكالوريوس في المحاسبة‬
‫باللغة اإلنجليزية من الجامعة االسالمية‪.‬‬
‫وحيث أننا نعهد منكم اإلهتمام واإلستعداد الدائمين لمؤازرة ومساندة الباحثين في أبحاثهم التي تخدم تطور مهنة‬
‫المحاسبة في مجتمعنا‪ ،‬فكلنا أمل أن نجد التعاون المعهود بكم من خالل إجابة األسئلة الواردة في اإلستبانة أدناه‪.‬‬
‫إن تقديمكم للمعلومات الكافية والمطلوبة بدقة وموضوعية سيؤدي بال شك إلى تقييم أفضل لموضوع الدراسة‪ ،‬وبالتالي‬
‫مساعدة الباحثين في تحقيق أهداف الدراسه والخروج بتوصيات لوضع الحلول المناسبة‪.‬‬
‫شاكرا لكم حسن تعاونكم وتجاوبكم‬
‫واقبلوا فـائق اإلحترام والتقدير‬
‫الباحثان ‪:‬‬
‫أحمد علي أبو مطير‬
‫خالد محمد النيرب‬
‫‪X‬‬
‫الجزء األول ‪:‬معلومات عامة ‪:‬‬
‫(‪ )1‬العمــــر ‪:‬‬
‫أ‬
‫من ‪ 20‬إلى ‪ 30‬سنة‬
‫ب‬
‫من ‪ 31‬إلى ‪ 40‬سنة‬
‫ج‬
‫من ‪ 41‬إلى ‪ 50‬سنة‬
‫د‬
‫من ‪ 50‬سنة فأكثر‬
‫(‪ )2‬المؤهل العلمي‪:‬‬
‫أ‬
‫ثانوية عامة فأقل‬
‫ب‬
‫دبلوم‬
‫ج‬
‫بكالوريوس‬
‫د‬
‫دراسات عليا‬
‫(‪)3‬التخصص العلمي ‪:‬‬
‫أ‬
‫محاسبة‬
‫ب‬
‫مالية ومصرفية‬
‫ج‬
‫إدارة أعمال‬
‫د‬
‫اقتصاد‬
‫د‬
‫أخرى ( رجاء ذكرها ‪).......................................‬‬
‫(‪ )4‬طبيعة عملك‪:‬‬
‫أ‬
‫موظف في القطاع العام‬
‫ب‬
‫موظف في القطاع الخاص‬
‫ج‬
‫رجل أعمال‬
‫د‬
‫تاجر‬
‫د‬
‫أخرى ( رجاء ذكرها ‪).......................................‬‬
‫(‪ )5‬عدد سنوات تعاملك في االستثمار‪:‬‬
‫أ‬
‫أقل من سنة‬
‫ب‬
‫من ‪ 1‬إلى أقل من ‪ 3‬سنوات‬
‫ج‬
‫من ‪ 3‬إلى أقل من ‪ 5‬سنوات‬
‫د‬
‫من ‪ 5‬إلى أقل من ‪ 7‬سنوات‬
‫د‬
‫‪7‬سنوات فأكثر‬
‫‪XI‬‬
‫(‪ )6‬يتراوح حجم استثمارك في سوق فلسطين لألوراق المالية بالدينار(اختياري)‪:‬‬
‫أ‬
‫أقل من‪15000‬‬
‫ب‬
‫من ‪ 15001‬إلى أقل من‪30000‬‬
‫ج‬
‫من ‪ 30001‬إلى أقل من‪50000‬‬
‫د‬
‫من ‪ 50001‬إلى‪100000‬‬
‫د‬
‫‪ 100001‬فأكثر‬
‫)‪ (7‬مدى قناعتكم بأهمية استخدام المعلومات المحاسبية في ترشيد ق اررات اإلستثمار‪:‬‬
‫أ‬
‫مهمة جدا‬
‫ب‬
‫مهمة‬
‫ج‬
‫متوسطة األهمية‬
‫د‬
‫قليلة األهمية‬
‫د‬
‫عديمة األهمية‬
‫)‪ (8‬مدى كفاية المعلومات المحاسبية في التقارير المالية لترشيد ق اررات اإلستثمار‪:‬‬
‫أ‬
‫أقل من‪20 %‬‬
‫ب‬
‫من ‪%40 - %21‬‬
‫ج‬
‫من ‪%60-%41‬‬
‫د‬
‫من ‪%80-%61‬‬
‫د‬
‫‪ %81‬فأكثر‬
‫(‪ )9‬مدى درجة الثقة في تقرير مدقق الحسابات‪:‬‬
‫أ‬
‫أقل من‪20 %‬‬
‫ب‬
‫من ‪%40 - %21‬‬
‫ج‬
‫من ‪%60-%41‬‬
‫د‬
‫من ‪%80-%61‬‬
‫د‬
‫‪ %81‬فأكثر‬
‫(‪ )10‬مدى درجة الثقة في المعلومات المحاسبية في ترشيد ق اررات اإلستثمار‪:‬‬
‫أ‬
‫أقل من‪20 %‬‬
‫ب‬
‫من ‪%40 - %21‬‬
‫ج‬
‫من ‪%60-%41‬‬
‫د‬
‫من ‪%80-%61‬‬
‫د‬
‫‪ %81‬فأكثر‬
‫(‪ )11‬مدى درجة الثقة في نشرات سوق فاسطين لألوراق المالية‪:‬‬
‫أ‬
‫أقل من‪20 %‬‬
‫ب‬
‫من ‪%40 - %21‬‬
‫ج‬
‫من ‪%60-%41‬‬
‫د‬
‫من ‪%80-%61‬‬
‫د‬
‫‪ %81‬فأكثر‬
‫‪XII‬‬
‫الجزء الثاني ‪:‬‬
‫المجال األول ‪:‬حدد درجة أهمية المعلومات المحاسبية لترشيد قرارات االستثمار في الفقرات التالية‪:‬‬
‫رقم‬
‫الفقرة‬
‫(‪)1‬‬
‫(‪)2‬‬
‫بدرجة‬
‫كبيرة‬
‫جدا‬
‫الفقرات‬
‫يعد توفير المعلومات المحاسبية واستخدامها عند اتخاذ‬
‫قرارات اإلستثمار أمرا ضروريا‪.‬‬
‫في ضوء التطورات المتسارعة وتوافر البدائل المتعددة‪ ،‬فإن‬
‫توفيرر معلومات محاسبية تساعد في اتخاذ قرارات اإلستثمار‬
‫يعد أمرا حتميا‪.‬‬
‫يحقق االعتماد على المعلومات المحاسبية عند اتخاذ قرارات‬
‫اإلستثمار‪:‬‬
‫أ‪ -‬فاعلية أكبر‪.‬‬
‫(‪)3‬‬
‫ب‪ -‬تكلفة أقل‪.‬‬
‫ج‪ -‬وقت أقل‪.‬‬
‫د‪ -‬جودة في األداء‪.‬‬
‫(‪)4‬‬
‫من مزايا توفير المعلومات المحاسبية عند اتخاذ قرارات‬
‫اإلستثمار زيادة قدرة ومهارات متخذي القرارات‪.‬‬
‫(‪)5‬‬
‫يؤدي توفير المعلومات المحاسبية عند اتخاذ قرارات‬
‫اإلستثمار إلى إنشاء نظم متكاملة للمعلومات واالستفادة منها‬
‫في ترشيد عمليات اتخاذ القرارات‪.‬‬
‫(‪)6‬‬
‫يؤدي استخدام المعلومات المحاسبية في اتخاذ قرارات‬
‫اإلستثمار إلى تخفيض درجة المخاطرة فيها‪.‬‬
‫(‪)7‬‬
‫إن استخدام المعلومات المحاسبية في ترشيد قرارات اإلستثمار‬
‫يؤثر على طبيعة ونوعية األسهم المستثمر فيها‪.‬‬
‫(‪)8‬‬
‫(‪)9‬‬
‫(‪)10‬‬
‫يؤدي استخدام المعلومات المحاسبية إلى تحقيق درجة أعلى‬
‫من التكامل والترابط بين قرارات اإلستثمار‬
‫‪.‬‬
‫إن استخدام المعلومات المحاسبية عند اتخاذ القرارات يوفر‬
‫قدرات ومهارات كافية لتحقيق الغايات المنشودة من اإلستثمار‬
‫بالشكل األمثل‪.‬‬
‫إن استخدام المعلومات المحاسبية في ترشيد قرارات اإلستثمار‬
‫يوفر مجموعة من اإلجراءات الرقابية لضمان سالمة‬
‫القرارات المتخذة وكشف األخطاء في حالة حدوثها‪.‬‬
‫‪XIII‬‬
‫بدرجة‬
‫كبيرة‬
‫بدرجة‬
‫متوسطة‬
‫بدرجة‬
‫ضعيفة‬
‫بدرجة ضعيفة‬
‫جدا او‬
‫معدومة‬
‫المجال الثاني‪ :‬حدد درجة توفر المعلومات المحاسبية التالية في التقـارير المالية لترشيد قرارات االستثمار‪:‬‬
‫رقم‬
‫الفقرة‬
‫الفقرات‬
‫(‪)1‬‬
‫توفر الشركات معلومات عن األرباح المحتجزة‪.‬‬
‫(‪)2‬‬
‫توفر الشركات معلومات عن نسبة التوزيعات المقررة على‬
‫المساهمين‪.‬‬
‫(‪)3‬‬
‫(‪)4‬‬
‫توفر الشركات معلومات عن التغيرات الحادثة في رأس المال‪.‬‬
‫توفر الشركات معلومات عن نصيب السهم من األرباح‪.‬‬
‫(‪)5‬‬
‫توفر الشركات معلومات عن القيمة العادلة لبنود‬
‫األصول وااللتزامات المالية‪.‬‬
‫(‪)6‬‬
‫توفر الشركات معلومات عن المكاسب المحققة‬
‫األكثر تأكيدا أو الخسارة المحتملة األقل تأكيدا‪.‬‬
‫(‪)7‬‬
‫توفر الشركات معلومات حول األثر المتراكم‬
‫لتغيير السياسات المحاسبية‪.‬‬
‫(‪)8‬‬
‫(‪)9‬‬
‫بدرجة‬
‫كبيرة‬
‫جدا‬
‫بدرجة‬
‫كبيرة‬
‫بدرجة‬
‫متوسطة‬
‫بدرجة‬
‫ضعيفة‬
‫بدرجة ضعيفة‬
‫جدا او‬
‫معدومة‬
‫توفر الشركات معلومات عن التقارير المالية الدورية مدققة‪..‬‬
‫توفر الشركات معلومات عن قيام المدقق بتقييم مدى كفاءة‬
‫اإلدارة في إعداد الموازنات‪.‬‬
‫المجال الثالث‪ :‬حدد درجة استخدامك للمعلومات المحاسبية لترشيد قرارات االستثمار في الفقرات التالية‪:‬‬
‫رقم‬
‫الفقرة‬
‫بدرجة‬
‫كبيرة‬
‫جدا‬
‫الفقرات‬
‫(‪)1‬‬
‫قائمة الدخل‪.‬‬
‫(‪)2‬‬
‫قائمة المركز المالي‪.‬‬
‫(‪)3‬‬
‫قائمة التدفقات النقدية‪.‬‬
‫(‪)4‬‬
‫قائمة التغير في حقوق الملكية‪.‬‬
‫(‪)5‬‬
‫تقارير مدقق الحسابات‪.‬‬
‫(‪)6‬‬
‫قائمة أخرى‬
‫‪XIV‬‬
‫بدرجة‬
‫كبيرة‬
‫بدرجة‬
‫متوسطة‬
‫بدرجة‬
‫ضعيفة‬
‫بدرجة ضعيفة‬
‫جدا او‬
‫معدومة‬
‫(‪)7‬‬
‫(‪)8‬‬
‫(‪)9‬‬
‫استخدام المعلومات المحاسبية للمقارنة بين بدائل‬
‫اإلستثمار الختيار البديل األفضل‪.‬‬
‫استخدام المعلومات المحاسبية للتأكد من رشد‬
‫قرار اإلستثمار المتخذ‪.‬‬
‫استخدام المعلومات المحاسبية لتصحيح القرارات‬
‫وتعزيزها والتأكد من فاعليتها‪.‬‬
‫المجال الرابع‪ :‬حدد درجة تأثير المعلومات األخرى غير الواردة في القوائم المالية على قرارات االستثمار في الفقرات‬
‫التالية‪:‬‬
‫رقم‬
‫الفقرة‬
‫الفقرات‬
‫(‪)1‬‬
‫معلومات من نصائح الوسطاء‪.‬‬
‫(‪)2‬‬
‫معلومات من اإلشاعات‪.‬‬
‫(‪)3‬‬
‫معلومات من نصائح األصدقاء واألقارب‪.‬‬
‫(‪)4‬‬
‫معلومات من النشرات الخاصة بالسوق‪.‬‬
‫(‪)5‬‬
‫معلومات من النشرات الحكومية‪.‬‬
‫(‪)6‬‬
‫(‪)7‬‬
‫(‪)8‬‬
‫بدرجة‬
‫كبيرة‬
‫جدا‬
‫بدرجة‬
‫كبيرة‬
‫بدرجة‬
‫متوسطة‬
‫بدرجة‬
‫ضعيفة‬
‫بدرجة ضعيفة‬
‫جدا او‬
‫معدومة‬
‫معلومات من المجالت والجرائد‪.‬‬
‫معلومات من زيارة الشركات‪.‬‬
‫معلومات من موقع الشركات على الشبكة العالمية‬
‫(االنترنت)‬
‫معلومات من دليل المؤشرات المالية للشركات‬
‫(‪)9‬‬
‫(‪)10‬‬
‫نشر تقارير خاصة باإلدارة بخالف القوائم‬
‫والتقارير المالية‪.‬‬
‫(‪)11‬‬
‫استخدام اسلوب التحليل المالي كأداة من أدوات‬
‫اتخاذ القرار‪.‬‬
‫(‪)12‬‬
‫تغيرات في اإلدارة العليا للشركات‪.‬‬
‫(‪)13‬‬
‫مالحظات للمدقق الخارجي األخرى‪.‬‬
‫(‪)14‬‬
‫قرارات مجلس اإلدارة بشأن خطط التوسع‬
‫المستقبلية وفتح فروع جديدة‪.‬‬
‫المجال الخامس‪ :‬حدد درجة المعوقـات في الحد من استخدام المعلومات المحاسبية في ترشيد قرارات اإلستثمار‪:‬‬
‫‪XV‬‬
‫رقم‬
‫الفقرة‬
‫بدرجة‬
‫كبيرة‬
‫جدا‬
‫الفقرات‬
‫(‪)1‬‬
‫ارتفاع تكلفة الحصول على هذه المعلومات‪.‬‬
‫(‪)2‬‬
‫عدم توفير المعلومات بالدقة والسرعة المطلوبة‪.‬‬
‫(‪)3‬‬
‫(‪)4‬‬
‫(‪)5‬‬
‫بدرجة‬
‫كبيرة‬
‫عدم الثقة المطلقة في طرق إعداد المعلومات‬
‫المحاسبية‪.‬‬
‫عدم إمكانية استخدام المعلومات المحاسبية على‬
‫التنبؤ في المستقبل‪..‬‬
‫صعوبة المقارنة بين بدائل االستثمار بسبب‬
‫اختالف طرق اإلعداد واإلفصاح‬
‫إن عدم استخدام المعلومات المحاسبية يرجع‬
‫لألسباب التالية‪:‬‬
‫أ‪ -‬قلة الخبرة العملية‪.‬‬
‫(‪)6‬‬
‫ب‪ -‬ضعف المعرفة باألمور والمعلومات‬
‫المحاسبية‪.‬‬
‫ج‪ -‬بعد المؤهل األكاديمي عن الجانب المحاسبي‪.‬‬
‫د‪ -‬عدم اكتساب مهارات وظيفية للتعامل مع المعلومات‬
‫المحاسبية‪.‬‬
‫(‪)7‬‬
‫ضعف الرقابة على نتائج قرارات اإلستثمار دون‬
‫االعتماد على المعلومات المحاسبية‪.‬‬
‫(‪)8‬‬
‫عدم نشر تقارير دورية‪..‬‬
‫(‪)9‬‬
‫عدم تنظيم مهنة المحاسبة والمراجعة بشكل سليم‬
‫في فلسطين‪.‬‬
‫(‪)10‬‬
‫نظرة المجتمع غير السليمة للمحاسبة والمعلومات‬
‫المحاسبية‪.‬‬
‫(‪)11‬‬
‫عدم وجود قانون واضح لسوق فلسطين فيما‬
‫يتعلق بالمعلومات المحاسبية‪.‬‬
‫شاكرين لكم حسن تعاونكم‪،،،،،،،،‬‬
‫‪XVI‬‬
‫بدرجة‬
‫متوسطة‬
‫بدرجة‬
‫ضعيفة‬
‫بدرجة ضعيفة‬
‫جدا او‬
‫معدومة‬