Users’ perceptions of various aspects of Kuwaiti corporate reporting

Abstract

In this study an attempt is made to provide empirical evidence on the usefulness of different aspects of the annual report to various Kuwaiti user groups. To do so, eight Kuwaiti user groups were surveyed through a questionnaire. The groups were individual investors; institutional investors, bank credit officers, government officials, financial analysts, academics, auditors and stock market brokers. The analyses indicate that the user groups surveyed in the study rely mainly on information made directly available by the company and do not consult intermediary sources of corporate information in order to make informative decisions. The analyses also revealed that credibility and timeliness are the most important features of useful corporate information and traditional financial statements are the most important and credible parts of corporate annual reports. Non-financial information, however, proved to be less credible and of less importance to the Kuwaiti user groups.

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

“…This review of prior studies shows that only two studies (Almujamed et al, 2012;Naser et al, 2003) discussed financial information sources and investment decision-making in Kuwait. The current study is different from these two studies.…”

“…A number of research papers (Almujamed et al, 2012;Al Sawalqa, 2012;Alzarouni, Aljifri, Ng, & Tahir, 2011;Zoysa & Rudkin, 2010;Desoky, 2010;Abdelkarim, Shahin, & Arqawi, 2009;Al-Ajmi, 2009;Alattar & Al-Khater, 2007;Al-Tamimi, 2006;Al-Razeen & Karbhari, 2004;Naser, Nuseibeh, & Al-Hussaini, 2003;Bartlett & Chandler, 1997;Abu-Nassar & Rutherford, 1996;Scott & Smith, 1992;Baker & Haslem, 1973) have studied the different types of corporate information for investment decision-making. Results from some of the studies relevant to this one are discussed below.…”

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

“…Stockbrokers' advice and newspapers and magazines, found to be among the least important source of information for investors in Jordan. In Kuwait, Naser, Nuseibeh and Al-Hussaini (2003) findings revealed that individual investors ranked the direct information from companies as the most important source of information for the purpose of their investment decision. In Saudi Arabia, Al-Razeen and Karbhari (2004a) investigated the importance of corporate annual reports, interim reports, specialists' advice, friends' advice, newspapers and magazines, specialized publications, direct information from companies and market rumours as information sources for investment decision making.…”

“…Abdelsalam, 1990;Abu-Nassar & Rutherford, 1995, 1996Al-Abdulqader, Hannah & Power, 2007;Al-Ajmi, 2009;Al-Razeen & Karbhari, 2004a, 2004bChatterjee, Mirshekary, Al Farooque & Safari, 2010;Mirshekary & Saudagaran, 2005;Naser et al, 2003). This study focuses mainly on individual investors.…”

“…Abdelsalam, 1990;Abu-Nassar & Rutherford, 1995, 1996Al-Ajmi, 2009;Al-Attar & Al-Khater, 2007;Al-Razeen & Karbhari, 2004a, 2004bDesoky, 2010;Naser et al, 2003;Chatterjee, Mirshekary, Al Farooque & Safari, 2010;Al-Abdulqader, Hannah & Power, 2007;Mirshekary & Saudagaran, 2005) have been started to give more emphasis to financial reporting and the related issues such as disclosure and financial information sources in developing countries, this study comes as a starting point to identify the effect of the usage of a broad set of information sources on the Jordanian individual investment opportunity. However, Al-Akra et al (2009, p. 164) reported that previous accounting research has focused on developed countries, while Jordan and other Middle Eastern countries have been neglected despite recent changes in its economic and accounting regulatory environments.…”