Naser Abdelkarim, Birzeit University
Yasser. A. Shahin, Al-Quds Open University
Bayan M. Arqawi, Birzeit University
Accounting & Taxation, Vol. 1, No. 1, pp. 45-61, 2009
The primary objective of this study is to investigate the perception of users regarding the availability, adequacy, and usefulness of information disclosed in the financial reports of companies listed on the Palestine Securities Exchange (PSE). A survey methodology was utilized involving a selected sample of information users, i.e., individual and institutional investors, analysts, academics, and intermediaries. Results of the study demonstrated that users perceive reported information as neither adequate nor relevant to investment decisions. In particular, reported information was insufficient, as listed companies did not comply with the minimum disclosure requirements of international standards. This unfavorable perception, along with poor credibility and bad timeliness of the disclosures, has prevented information from being impounded into stock prices. The study presented a number of recommendations that may be helpful in improving the efficiency of the PSE, which in turn will contribute to the Palestinian economy as a whole.
Keywords: Information Disclosure, Market Efficiency, Financial Statements, Information
JEL Classifications: G11, G14, G15