Financial Information Transparency Influence On Investor Behaviour In The Saudi Stock Market

Financial Information Transparency Influence On Investor Behaviour In The Saudi Stock Market. CHAPTER 1 INTRODUCTION TO THE STUDY This chapter introduces the topic of the study. It presents the financial information transparency influence of the investor behavior in the Saudi Stock Market. The major subtopics that this chapter covers include the background to the study, statement of the problem, the purpose of the study as well as research questions and hypothesis. More so, the chapter covers the relevance or importance of this study. Background of the Study Any issues involving finance, for instance in companies and organizations require transparency. Such matters include completeness, accuracy, timeliness as well as thoroughness. Therefore, many investors rely on the reliability of company information and the strategies that such a firm sets to meet the targets. The recent financial crisis in the emerging markets has been caused mainly by a lack of financial transparency. Gelos and Wei, (2002, N.p) argue that lack of financial transparency contributed much to the Mexican crisis of the year 1994 to 1995. Also, the 1997-1998 market crisis came about because of financial system weaknesses (hidden). Also, lack of clarity and inadequate economic data also played a notable part in the claim. According to Hsiu, (2006, p.14), the transparency of business financial information is very crucial when it comes to influencing the investment strategies from the investors. In fact, most of the investors are attracted by the…

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