Different Sources of Corporate Financial Information and Investment Decision Opportunity: Evidence from Amman Stock Exchange

Abstract

This study was designed to examine the importance of different corporate financial information sources in investment decision-making. To achieve this objective, 94 Jordanian individual investors were surveyed. The result of study indicated that Jordanian individual investors ranked corporate annual reports as the most important source of information for the purpose of their investment decision-making. This followed by the published daily share prices, corporate web sites, newspapers and magazines, advice of friends, discussion with company staff, stockbrokers' advice and tips and rumours respectively. Thus, the findings of study revealed that Jordanian individual investors place more emphasis on the usage of written information rather than verbal information for the purpose of investment decision-making. The results also indicated that the usage of corporate annual report and the discussion with company staff contribute significantly towards a good investment opportunity. This indicated that Jordanian individual investors were very careful in their investment decision-making process in that they prefer to depend on those sources that issued by the intended companies.

Kuwait Stock Market Participants’ Perceptions of Information Useful to the Investment Decisions

“…9, No. 6;2014 collected, constituting a response rate of 41%. The questionnaire targeted key players in the Kuwaiti stock market-namely, analysts, fund managers, individual investors, and stockbrokers who are involved with investment decisions.…”

“…9, No. 6;2014 groups was influenced by the literature as well as responses from the pilot questionnaire. Table 1 shows that 168 out of 410 questionnaires (a response rate of 41%) were useable and collected.…”

“…9, No. 6;2014 Details on the level and type of investment undertaken by participants were also ascertained and the responses summarized in Table 3. In terms of the amount of money invested, 15.6% are investing less than KD 10,000, 26.2% are investing between KD 10,000-50,000), 27.9% between KD 50,000-500,000, 14.7% between KD (500,000-5 million, and 15.6% invested more than KD 5 million.…”

“…9, No. 6;2014 On the contrary, friends' advice, ages of directors, tips and rumours, and donations to charitable organizations were seen as the least-used sources of information for making investment decisions. Such findings were not different from Almujamed et al (2012), as investors tend to do their homework by doing some analysis before making any investment decision.…”

Impact of Accounting Information on Bank Lending Decisions: A Case Study of First Bank, Bwari Area Council, Abuja

“…Lucy [5] said, information must be transmitted by means of communication process and communication involved in the interchanging of facts, thoughts, values, judgment and opinion which can take many forms like face to face conversation, telephone calls, letters, reports, visual display unit (VDU) transmission etc. Sawalga [6] examined the most important information sources relating to investment decision situations in Iran. The results obtained indicate that to investors, corporate annual reports were the most important for investment decisions.…”