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Disclosure of Financial Statements and Its Effect on Investor¡¯s Decision Making in Jordanian Commercial Banks

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  • Isam Saleh
  • Nawaf Alghusain

Abstract

This study aims to examine the effect of financial information on investors decision making in commercial banks in Jordan. A questionnaire was adopted to address attitudes of professionals such as managers, analysts and investors and to identify to which degree the financial information was used in taking investment decisions. The results revealed a weak positive relationship between investment decisions and financial information that were provided by commercial banks in Jordan to the investors. This study recommended that adequate care and due diligence should be maintained in preparation of financial statements to avoid faulty investment decisions.

Suggested Citation

  • Isam Saleh & Nawaf Alghusain, 2018. "Disclosure of Financial Statements and Its Effect on Investor¡¯s Decision Making in Jordanian Commercial Banks," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(2), pages 20-27, February.
    • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:2:p:20-27
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    References listed on IDEAS

    as
    1. Diamond, Douglas W, 1985. "Optimal Release of Information by Firms," Journal of Finance, American Finance Association, vol. 40(4), pages 1071-1094, September.
    2. Easley, David & Hvidkjaer, Soeren & O’Hara, Maureen, 2010. "Factoring Information into Returns," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 45(2), pages 293-309, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    investors; decision making; financial information; commercial banks;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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