Search results

1 – 10 of 56
To view the access options for this content please click here
Article
Publication date: 6 March 2020

Mohamed Omran and Yasean A. Tahat

Drawing upon agency theory, this study aims to assess the value relevance (VR) of accounting information released by non-financial firms listed on the Kuwait stock…

Abstract

Purpose

Drawing upon agency theory, this study aims to assess the value relevance (VR) of accounting information released by non-financial firms listed on the Kuwait stock exchange for the period of 2015-2018. Also, the influence of institutional ownership level and other explanatory variables, namely, book value per share, earnings per share, growth in assets and changes in financial leverage on share prices is examined.

Design/methodology/approach

To test the hypotheses, the Ohlson (1995) model is extended. This study uses panel data analysis and applies appropriate statistical techniques to measure empirical relationships.

Findings

The results show that the VR of accounting information released by the Kuwaiti non-financial listed firms varies over the period of 2015-2018. Book value and earnings have significant and positive effects on share prices. In recent years, the VR of book value information has been growing, while that of earnings information has been declining. Institutional ownership level has a significant and positive influence on the VR of accounting information released by the Kuwaiti non-financial listed firms. The findings confirm a positive power, signalling growth in assets regarding the share prices. However, no significant relationship between changes in financial leverage and share prices is found.

Practical implications

The findings of the study provide evidence of the linkage between VR and institutional ownership level, which promotes the understanding of the influence of institutional investors on a firm’s market value. Empirical evidence from Kuwait will have international implications and can serve as a guide for accounting researchers studying other emerging markets. Capital market regulators can provide guidelines in the form of information characteristics and elements of financial statements that need improvement. Finally, the findings assist non-financial listed firms to enhance the quality of accounting information by identifying the strengths and weaknesses in their financial reports.

Originality/value

This study extends the previous literature by investigating a relatively new set of data in more depth than that has been examined by prior research, which focusses on the relationship between accounting information and the firm’s market value.

Details

International Journal of Accounting & Information Management, vol. 28 no. 2
Type: Research Article
ISSN: 1834-7649

Keywords

To view the access options for this content please click here
Article
Publication date: 17 May 2021

Mohamed Omran, Dinesh Ramdhony, Oren Mooneeapen and Vishaka Nursimloo

Drawing upon agency theory, this study analyses the influence of board characteristics on integrated reporting (IR) for the top 50 companies listed on the Australian…

Abstract

Purpose

Drawing upon agency theory, this study analyses the influence of board characteristics on integrated reporting (IR) for the top 50 companies listed on the Australian Securities Exchange (ASX50). Focus is placed on IR at the aggregate level as well as its separate components, namely Future Opportunities and Risks (FOPRI), Governance and Strategy (GOVSTR), Performance (PERF), Overview and Business Model (OBM) and General Preparation and Presentation (GPP).

Design/methodology/approach

A checklist is devised based on the IIRC (International Integrated Reporting Council) framework to track companies' disclosures for the period from 1st July 2014 to 30th June 2017. Regression analysis is used to investigate the determinants (board size, board independence, activity of the board, gender diversity, firm size, profitability and growth opportunities) of IR and its separate components.

Findings

The findings indicate a significant and positive effect of board independence on the aggregate IR index, FOPRI and GPP. A negative and significant association is found between activity of the board and both the aggregate IR index and its separate components, including GOVSTR, PERF and GPP. Additionally, the aggregate IR index is significantly related to firm size, profitability and growth opportunities.

Research limitations/implications

The limited sample of 50 companies over three years is the main limitation of the study. The study suffers from an inherent limitation from the use of content analysis in assessing the level of IR. No checklist to measure the level of IR can be fully exhaustive. Furthermore, we focus on whether an item in the checklist is disclosed, using a dichotomous scale, thus ignoring the quality of information disclosed.

Practical implications

The study has several practical implications. From a managerial perspective, it shows that having more board meetings harms the level of IR. The results can guide regulators, such as the Australian Securities and Investment Commission (ASIC) and the Australian Securities Exchange (ASX), when drafting new regulations/guidelines/listing rules. If regulators aim for a higher level of integration in the reports, they know which “triggers to pull” to attain their target. Our results can guide regulators to choose the appropriate trigger among various alternatives. For instance, if a higher level of integrated reporting is desired, size instead of profitability should be chosen. Finally, ASX listed companies can use our checklist as a scorecard for their self-assessment.

Originality/value

This research is the first to investigate IR by devising a checklist based on IIRC (2013) along with an additional GPP component in the ASX context. Using separate models to examine each component of the aggregate IR index is also unique to this study. The study also brings to the fore the role of gender-diverse boards in promoting IR. It reiterates the debate about imposing a quota for better gender representation on boards.

Details

Journal of Applied Accounting Research, vol. 22 no. 4
Type: Research Article
ISSN: 0967-5426

Keywords

To view the access options for this content please click here
Article
Publication date: 30 August 2018

Omran Mohamed AlShamsi and Mian M. Ajmal

This purpose of this paper is to identify and prioritize the critical factors impacting knowledge sharing (KS) in technology-intensive manufacturing organizations in the…

Abstract

Purpose

This purpose of this paper is to identify and prioritize the critical factors impacting knowledge sharing (KS) in technology-intensive manufacturing organizations in the United Arab Emirates (UAE) and to propose a decision-making framework for KS.

Design/methodology/approach

Analytical Hierarchical Process method is used to identify these critical factors impacting KS in technology-intensive manufacturing organizations in the UAE.

Findings

Results show that organizational leadership and culture are the most critical factors impacting KS in the technology-intensive manufacturing organizations.

Research limitations/implications

The data are collected from technology-intensive manufacturing organizations in the UAE; therefore, these cannot be generalized to other locations. Future research in different countries is required.

Practical implications

To implement successful KS practices in technology-intensive manufacturing organizations, it is essential that all impacting factors and sub-factors are well understood within the organizations.

Originality/value

This study is among the first studies in the region that presents a comprehensive framework for KS in manufacturing sector.

Details

Business Process Management Journal, vol. 25 no. 5
Type: Research Article
ISSN: 1463-7154

Keywords

To view the access options for this content please click here
Article
Publication date: 4 September 2017

Ashraf Khallaf, Mohamed Aboelhamd Omran and Taha Zakaria

The purpose of this paper is to identify potential reasons for inconsistent results of the economic value of information technology (IT) investments. Furthermore, the…

Abstract

Purpose

The purpose of this paper is to identify potential reasons for inconsistent results of the economic value of information technology (IT) investments. Furthermore, the study aims to develop framework and propositions to explore future opportunities and directions for research that examine the returns on IT investments.

Design/methodology/approach

This study conducted a longitudinal analysis of the literature review concerning the impact of IT investments on firm performance to identify the reasons to the so-called “IT productivity paradox” and to explore future opportunities and directions for future research.

Findings

The study provides and discusses the reasons for the inconsistent results in the prior research that examines IT investments payoff and suggested a framework and propositions for future research. Results of prior studies should be interpreted in the context of research questions raised, data used, level of analysis, IT investment measures, firm performance measures, time horizon and industry characteristics.

Practical implications

IT managers and researchers should align IT investments with the environment in which a firm operates and competes and with firm’s business strategies as important determinants of the return on IT investments.

Originality/value

Understanding the link between firm performance and IT investments assists researchers and practitioners to understand why firms continue to pour enormous resources into IT and, more importantly, specifies the conditions under which firms are likely to achieve competitive advantages from their IT investments.

Details

Journal of Accounting & Organizational Change, vol. 13 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

To view the access options for this content please click here
Article
Publication date: 2 November 2018

Yasean Tahat, Mohamed A. Omran and Naser M. AbuGhazaleh

Based on the institutional theory, the purpose of this paper is to examine institutional factors that affect the development of accounting practices in Jordan.

Abstract

Purpose

Based on the institutional theory, the purpose of this paper is to examine institutional factors that affect the development of accounting practices in Jordan.

Design/methodology/approach

The current study surveys the perceptions of 306 participants and 20 interviewees.

Findings

First, the early formation of accounting practices in Jordan has been affected by the legacy of Ottoman Empire’s and the British Colony’s accounting systems. Second, the results indicate that government of Jordan (regulatory frameworks), pressures from international donors and large economic organizations (politico-economic factors), education and training/development (cultural inputs), and the efforts to attract foreign investments and getting access into the international fund and trade (economic factors) have been influential influences in the development of accounting practices and the adoption of International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) in Jordan. Finally, the findings reveal that “Secrecy” construct (a culture input) has been a problematic in the implementation of IAS/IFRS.

Practical implications

The current study provides policy implications for the Jordanian policy makers and for other developing countries that are working hard to improve the quality of financial reporting of their business entities. Finally, the authors suggest some great opportunities for future research.

Originality/value

First, this paper contributes to Jordan’s policy developments including fundamental strategies in terms of attracting foreign investments to expand the economy and the international and regional trade. Second, it fills a gap in the international accounting research by empirically assessing how institutional factors affect the development of accounting practices in emerging country such as Jordan.

Details

Asian Review of Accounting, vol. 26 no. 4
Type: Research Article
ISSN: 1321-7348

Keywords

To view the access options for this content please click here
Article
Publication date: 1 June 2009

M.F. CFA Omran

The study examines determinants of price earnings (PE) multiples and their ability to forecast short term returns in the Egyptian stock market during the period from 2002…

Abstract

The study examines determinants of price earnings (PE) multiples and their ability to forecast short term returns in the Egyptian stock market during the period from 2002 to 2007. Three factors were tested for their ability to determine the PE multiples. The three variables are growth, payout and return on equity (ROE) in the period from 2002 to 2005. Only Payout and ROE were found to be significant. The ability of past average PE multiples to explain and therefore forecast future short term returns were tested. Short term returns as measured by changes in stock prices from 2006 to 2007 were regressed against the past average PE multiples in the period from 2002 to 2005. The results indicate that the past high or low PE multiples give no insight on the direction and magnitude of future short returns. An important finding of the paper is that expectations about above average future growth can influence PE multiples more than the average past growth. This happens when the economy or some sectors of it are expected to witness far more growth than its past. It is therefore recommended for future studies that a quantitative or qualitative measure of future expectations should be included in the PE determinants formula in Egypt or countries expected to have very high or above average future growth in some of its sectors.

Details

Journal of Economic and Administrative Sciences, vol. 25 no. 1
Type: Research Article
ISSN: 1026-4116

Keywords

To view the access options for this content please click here
Book part
Publication date: 12 December 2003

Mohamed F. Omran and Florin Avram

This paper relaxes the assumption of conditional normal innovations used by Fornari and Mele (1997) in modelling the asymmetric reaction of the conditional volatility to…

Abstract

This paper relaxes the assumption of conditional normal innovations used by Fornari and Mele (1997) in modelling the asymmetric reaction of the conditional volatility to the arrival of news. We compare the performance of the Sign and Volatility Switching ARCH model of Fornari and Mele (1997) and the GJR model of Glosten et al. (1993) under the assumption that the innovations follow the Generalized Student’s t distribution. Moreover, we hedge against the possibility of misspecification by basing the inferences on the robust variance-covariance matrix suggested by White (1982). The results suggest that using more flexible distributional assumptions on the financial data can have a significant impact on the inferences drawn.

Details

Maximum Likelihood Estimation of Misspecified Models: Twenty Years Later
Type: Book
ISBN: 978-1-84950-253-5

To view the access options for this content please click here
Article
Publication date: 12 June 2007

Samy Ben Naceur, Samir Ghazouani and Mohamed Omran

The purpose of this study is to investigate the role of stock markets in economic growth and to shed some light on the macroeconomic determinants which must have an…

Abstract

Purpose

The purpose of this study is to investigate the role of stock markets in economic growth and to shed some light on the macroeconomic determinants which must have an important influence on stock markets development.

Design/methodology/approach

The empirical study is conducted using an unbalanced panel data from 12 Middle Eastern and North African (MENA) region countries. Econometric issues are based on estimation of some fixed and random effects specifications.

Findings

It is found that saving rate, financial intermediary, stock market liquidity and the stabilization variable are the important determinants of stock market development. In addition, it is found that financial intermediaries and stock markets are complements rather than substitutes in the growth process.

Practical implications

This paper has some policy implications to MENA region countries. In order to promote stock market development in the region, it is important to encourage savings by appropriate incentives, to improve stock market liquidity, to develop financial intermediaries and to control inflation.

Originality/value

Since it is unclear whether emerging markets in the MENA region respond, similarly, to economic and political shocks like other emerging markets and/or developed markets. This paper fills this gap by making an in‐depth analysis of 12 MENA capital markets in order to assess how they can improve their capital markets, and hence, benefit the global investor.

Details

Managerial Finance, vol. 33 no. 7
Type: Research Article
ISSN: 0307-4358

Keywords

To view the access options for this content please click here
Article
Publication date: 26 August 2014

Mohamed A. Omran and Ahmed M. El-Galfy

The purpose of this paper is to provide an extensive and critical overview of the theoretical perspectives used in the accounting disclosure literature including economic…

Abstract

Purpose

The purpose of this paper is to provide an extensive and critical overview of the theoretical perspectives used in the accounting disclosure literature including economic theories, political and social theories.

Design/methodology/approach

The paper reviews and discusses in details the positive accounting theory (PAT), agency theory, signalling theory, political economy theory (PET), stakeholder theory, legitimacy theory and contingency theory to identify the situations suit each of these perspectives.

Findings

The main finding shows that there is no universal theory applicable for all situations or societies. For example, PAT is probably used when a corporation believes that its primary responsibility is to use its resources and engage in activities designed to maximise its profits. On the other hand, the PET seems to better explain why some corporations appear to respond to government or public pressure for information about their social impact. The agency theory provides the required framework to evaluate accounting choices and disclosure decisions in market-based studies. While the legitimacy theory seems to be more suitable for multinational corporations working in developed/democratic countries, the stakeholder theory seems to be most suitable for multinational corporations working in developing/dictator countries; whereas a corporation can manage its stakeholders. The contingency theory supports our main finding that different theories are required for different situations, as it clearly indicates that management's preferences of reporting practices are related to the nature of environmental and organisational constraints rather than their relative income effects.

Originality/value

The paper contributes to the limited body of literature concerning the accounting disclosure theories and to identify the main theoretical perspective that can be used in the accounting disclosure research.

Content available

Abstract

Details

Journal of Accounting & Organizational Change, vol. 5 no. 4
Type: Research Article
ISSN: 1832-5912

1 – 10 of 56