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Hebron University Research Journal-B (Humanities) - (مجلة جامعة الخليل للبحوث- ب (العلوم الانسانيه

Hebron University Research Journal-B (Humanities) - (مجلة جامعة الخليل للبحوث- ب (العلوم الانسانيه

Abstract

The primary objective of this study is to investigate the perception of users regarding to availability, adequacy, relevance, and usefulness of information disclosed in the financial reports of companies listed at the PSE. A survey methodology was employed where a well-designed questionnaire was distributed to a selected sample of information users, i.e. individual and institutional users, analysts, academicians, and intermediaries during the period 1/8/2008 – 1/11/2008.

Results of the study demonstrated that the perception of users that reported information, which is available is neither adequate nor relevant to investment decisions. In particular, relevant information was not sufficient, as companies listed did not comply with minimum disclosure requirements per international standards. In addition, it demonstrated the incredibility and timeliness of information, which leads to a lack of information, being impounded into prices consistent with Al-Fayoumi (2003) results.

Results of the study demonstrated that rejection of the Weak Form Efficient in this market [Al-gareh (2001), Alfayoumi (2003), Abuzarour (2005), Abdel-Karim & Shaheen (2009)] is due in part to the perception of users that reported information available is not adequate or relevant to investment decisions. It also contributes to illiquidity, low volume of trading, weakness confidence, and perceived risks of the market. Therefore, the study presented a number of recommendations that may be helpful in improving the efficiency of the PSE, which in turn increases its role in the Palestinian economy as whole

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