Investors' use of corporate reports in Bahrain

Investors' use of corporate reports in Bahrain Purpose – The purpose of this paper is to report the results of an investigation into individual investors' perceptions of the factors affecting buying, holding and selling of stock on the Bahrain stock exchange (BSE). Additionally, the paper investigates the perceptions of individual investors about corporate financial statements as a source of information for individual investors' investment decisions and what specific information such investors would like firms to disclose in these reports. Design/methodology/approach – The research method involved a mail questionnaire sent to 800 individual investors. The response rate was 42.6 percent. This research method was complemented by a series of field interviews conducted with 20 investors and six stockbrokers for the purpose of gaining additional insights into the topic. Findings – The study found that individual investors perceived corporate financial statements as the most important source of information for their investment decisions. The results also show a relatively high degree of agreement within the groups (both large and small) as to the ranking in terms of the importance of the topics. Overall, the study found relatively high levels of consensus between the two user‐groups with regards to the majority of questions investigated. The greatest difference between the user‐groups regards the perception of the relative importance of the cash‐flow statement, the income statement and which information items are needed for investors' decision making. Originality/value – The paper offers rich data on the perceptions and uses of financial and non‐financial information by individual investors. This is the first time this type of research has been conducted in Bahrain. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Auditing Journal Emerald Publishing

Investors' use of corporate reports in Bahrain

Managerial Auditing Journal, Volume 24 (3): 24 – Mar 20, 2009

Loading next page...
 
/lp/emerald-publishing/investors-use-of-corporate-reports-in-bahrain-g4A6baHv9c
Publisher
Emerald Publishing
Copyright
Copyright © 2009 Emerald Group Publishing Limited. All rights reserved.
ISSN
0268-6902
DOI
10.1108/02686900910941140
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to report the results of an investigation into individual investors' perceptions of the factors affecting buying, holding and selling of stock on the Bahrain stock exchange (BSE). Additionally, the paper investigates the perceptions of individual investors about corporate financial statements as a source of information for individual investors' investment decisions and what specific information such investors would like firms to disclose in these reports. Design/methodology/approach – The research method involved a mail questionnaire sent to 800 individual investors. The response rate was 42.6 percent. This research method was complemented by a series of field interviews conducted with 20 investors and six stockbrokers for the purpose of gaining additional insights into the topic. Findings – The study found that individual investors perceived corporate financial statements as the most important source of information for their investment decisions. The results also show a relatively high degree of agreement within the groups (both large and small) as to the ranking in terms of the importance of the topics. Overall, the study found relatively high levels of consensus between the two user‐groups with regards to the majority of questions investigated. The greatest difference between the user‐groups regards the perception of the relative importance of the cash‐flow statement, the income statement and which information items are needed for investors' decision making. Originality/value – The paper offers rich data on the perceptions and uses of financial and non‐financial information by individual investors. This is the first time this type of research has been conducted in Bahrain.

Journal

Managerial Auditing JournalEmerald Publishing

Published: Mar 20, 2009

Keywords: Annual reports; Bahrain; Corporate finances; Disclosure; Investors

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month