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EISSN: 2313-3724, Print ISSN:2313-626X

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 Volume 6, Issue 8 (August 2019), Pages: 16-22


 Original Research Paper

 Title: The transparency of accounting information and its role in making investment decision (Companies listed on the Saudi stock exchange)

 Author(s): Khaled Adnan Oweis *, Hichem Dekhili


 Accounting Department, Business Administration College, Northern Border University, Arar, Saudi Arabia

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 * Corresponding Author. 

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The present study aimed to explore the impact of accounting information transparency on the process of making investment decisions in Saudi companies. It also aimed to explore the role of accounting information transparency in meeting the investors’ needs. It should be noted that the absence of transparency shall negatively affect the growth and development of financial markets. Such absence shall discourage potential investors from investing in the market, whether these investors are inside or outside the country. The present study is considered significant because it sheds a light on a significant issue. The latter issue is represented in the impact of accounting information transparency on the process of making an investment decision in the Saudi Public Shareholding Companies. The researchers of the present study adopted a descriptive analytical approach. In addition, an inductive approach was adopted too. The latter approach was adopted when reviewing the relevant studies and references. The researchers selected a sample. It consists of all the Saudi Public Shareholding Companies that were listed on the Saudi Stock Exchange during 2017. Thus, the sample consists of 172 companies. Questionnaire forms were distributed to several financial managers and managers of internal review department. These managers were selected from the aforementioned companies. 152 questionnaire forms were retrieved. All of the retrieved forms are considered valid for statistical analysis. The response rate is 86.3 % which is a high percentage. It was found that having transparent accounting information shall significantly help managers in making investment decisions. It was also found that transparent accounting information shall reduce the investment-related risks. In light of these results, the researchers suggested several recommendations. 

 © 2019 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (

 Keywords: Transparency, Investment, Disclosure, Financial statements

 Article History: Received 19 February 2019, Received in revised form 2 June 2019, Accepted 2 June 2019


No Acknowledgement.

 Compliance with ethical standards

 Conflict of interest:  The authors declare that they have no conflict of interest.


 Arham DI, Rakhmat R, and Arismunandar A et al. (2019). The transparency of accounting information and its role in making investment decision (Companies listed on the Saudi stock exchange). International Journal of Advanced and Applied Sciences, 6(8): 16-22

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