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This research aims to identify in which extent the investors in Palestine Exchange realize the importance of using Financial Information for instructing them in their investment decisions and serve their interests.

In this study, we concluded that the accounting information that published by PEX has an impact on the investors’ decision in specific listed companies ,by selecting a sample of investors located in GAZA and using the SPSS program to explain various relations.

The research reveals some important results such as the investors are aware of the importance of using accounting information in making decisions ,the accounting information which are involved by financial reports are efficient and they are used in making decisions.

At the end of this research, some of recommendations are concluded such as it is necessary to support and to increase the awareness of investors of the importance of using accounting information , paying more attention of financial lists function , reinforcing investors of continual training, publishing annual reports which can help the investors in instructing their investment decisions and supporting PEX with more clearer information about the accounting information and obligating the companies with these information.

INTRODUCTION ccountancy is one of social sciences, which handles a preparation of an information, it seek to measure the results of entity's economic units and determine their financial positions on a specific date for the submission of financial statements to meet users' needs or beneficiaries of such information whether they are investors, lenders, auditors or government agencies for use in making various of decisions including the investment decisions. The financial statements, which represent the output of accounting information system, are extremely useful for managing economic units as they explain the extent of entity success or failure in the exploitation of economic resources under its control, (Mohammed, 2000) To ensure proper understanding of financial statements, it is necessary that all significant accounting policies adopted in the preparation and presentation of financial statements should be disclosed.

Any change in an accounting policy which has a material effect should be disclosed. The amount by which any item in the financial statements is affected by such change should also be disclosed to the extent ascertainable. Where such amount is not ascertainable, wholly or in part, the fact should be indicated. If a change is made in the accounting policies which has no material effect on the financial statements for the current period but which is reasonably expected to have a material effect in later periods, the fact of such change should be appropriately disclosed in the period in which the change is adopted.

Palestine Exchange (PEX) that was established in 1995 and began the first trading sessions in 1997 as a private shareholding company and became a public shareholding company in February 2010 in responding to principles of transparency and good governance, consider the only local market that promote investment in Palestine to attract Palestinians’ savings at home and abroad, and to provides long-term financing for productive and infrastructure projects. The PEX operates under the supervision of the Palestinian Capital Market Authority ,and There are 46 listed companies on PEX as of 31/12/2011 with market capitalization of about $ 2.8 billion across five main economic sectors; banking and financial services, insurance, investments, industry, and services. Most of the listed companies are profitable and trade in Jordanian Dinar, while others trade in US Dollars. Only stocks are currently traded on PEX, but there is potential and readiness to trade other securities in the future. (Palestine Exchange, 2012).

This research aims to address the study and analysis the importance of accounting information in making investment decision to the categories of investors, and the adequacy of financial information published for private companies shares that was traded on the Palestine Securities Exchange, and the extent of understanding and awareness of investors to such information, and the extent of their use when making their investment decisions.

1.1 Statement of the problem

Some Palestinians investors in PEX unable to make a proper investment decision, either as a result of lack of investors understanding to the accounting information contained in the F.S of listed companies in the PEX or due to inadequate information, which make the investors depend on their personal experiences or on external sources to guide their investment decisions, therefore, those decisions will not be built on the basis of sound science, which sometimes affects negatively on the investment decisions. Therefore, the research problem is to test the understanding of the investors' financial information, and the adequacy of such information and reliability in the rationalization of investment decisions.

We can formulate research problem in the following questions:

 Are the investors in Palestine Exchange aware the importance of accounting information contained in financial statements for the investment decision?

 Is the accounting information contained in financial reports sufficient to take the investment decision?

 Is the investor uses the accounting information for guiding in investment decision?

 Is there other information affecting investment decision?

 What are the main barriers in using the accounting information in the rationalization of investment decision?

1.2 Importance of the research

 Identify investor character and the necessary information required by him, and learn how to understand and use this information to help make appropriate investment decisions.  Test the degree of investor understanding of the accounting.

 There have been some failures of some investors in PEX as a result of lack of understanding of the nature of the market and inappropriate use of information.

1.3 Objectives 1.3.1 Main objective

Highlighting the importance of accounting information and its role in guiding investment decisions in PEX.

1.3.2 Specific objectives

The specific objectives of this research are:

 Measure the investors awareness in PEX for the accounting

information

 Illustrate the adequacy of the information contained in the financial reports of PEX listed companies.

 Determine the investors using extent of accounting information when making investment decisions.

 Determine the main constraints faced by the investor in PEX, which limit the use of accounting information.

1.4 Research Hypotheses

1. The investor not realize in PEX importance of accounting information in the rationalization of investment decision.

2. The accounting information contained in financial reports is insufficient to rationalize the investment decision.

3. There is no other information not included in the financial statements affect the investment decision.

4. There is some obstacles limit in using of accounting information in guiding of the decision to invest in PEX. 1.5 Research variables

The Dependent variable and independent variables

FIGURE. 1

1 .6 Methodology

The research depends on the descriptive analytical method by tracking and investigate the matter subject, analysis and conclusions as well as to approach the study content through the study of some references and sources of accounting disclosure and review some studies and by identifying the reality of work in

PEX.

This has been relying on two methods to collect information and data:

Interview: through interviews with some of the existing PEX 

investors and ask them about how to work in the stock market and get

some reports and statistics. Questionnaire: questionnaires will be organized to  reconnaissance

the views of respondents about the importance of financial and other

information to rationalize their investment decisions.

1.7 Time Plan

TABLE NO. 1

The work in graduation research began on 12/02/2012 and will end in 16/05/2012.

Februa Week March April May ry

Activity 1 2 3 4 5 6 7 8 9 10 11 12 Introductory Activities Selecting a title Problem definition Determine goals, motivation Finalize objectives Approval from Dr. Salah Writing the proposal Related Works Activities Draft literature review literature Review Draft research strategy and method Analyze Activities Develop questionnaire Revise questionnaire Questionnaire administration Enter data into computer Data analysis Concluding Activities Draft a chapter findings Complete remaining chapters Submit to tutor and await feedback Revise draft, format for submission Print Submit

1.8 Related Works

A) Tinic Study, (1990) '' A Perspective on the Stock Market’s Fixation on Accounting Numbers'': The study talked about an investor’s adoption extent on accounting numbers and their effect on decision making, in addition to some of factors that influence it such accounting changes policies.

The study has reached to following conclusions:

1. Those investors are interested in accounting changes Induced by exporting companies; in which accounting information consider the cost of time and money to study these changes and their high impact. 2. Some investors conclude changes or differences that occur for numbers and accounting information to the different accounting policies which used in F.S preparation.

3. There is large effect on investors accounting numbers in which can be available on their investment trends that lead to appropriate decisions in stocks acquisition.

4. The accounting numbers considers as most important instrument to low capital firms.

B) Rowaed, (2005): This research aims to test the utility of accounting information for decision makers in investment of listed companies on the Amman Stock Exchange in addition to test the consistency and uniformity in the accounting reports that have been disclosed by these companies and determine the most important factors influencing investment decisions in securities.

The study has reached to following conclusions:

1. The information published in reports of the listed companies within the Amman Financial Market is clearly affect the decisions of the investors in the market whether to accept the investment or ignored it.

2. Financial and accounting information published is not enough for investors in the market and therefore the investment decision is subject at times to go personal and not rational.

3. There are influential factors in the market value of the shares of the listed companies in Amman Stock Exchange. C) Kwaku Study, (1995) '' The Information Content of interim financial reports: UK evidence”: The study examine whether interim report includes information will affect stock prices, a study suppose that the main objective of financial reports is helping investors in their decisions. This study has been applied to a sample of 100 listed companies in London exchange.

The study has reached to following conclusions:

The interim financial report has affected on financial securities prices at reports issuance, which contributes to assist investors in making investment decisions.

D) Wright, Ken (1996) ''Venture capitalists, unquoted equity investment appraisal'': The study dealt with the role and importance of accounting information for investors in financial markets in the United Kingdom, the study also indicated the importance of evaluation and accounting information when the trade-off between different types of securities.

The study has reached to following conclusions:

Importance of accounting information in the evaluation and trade-offs between different types of economic units of the shares (securities), in order to assist the investor in making investment decisions.

E) Zourb,(2005)''Test the operational efficiency of Palestine financial market '':This study aimed at identified the natural and the function of Palestine financial market and the factors that organized it , in addition the study determined the difficulties faced by PEX. The study has been applied to a sample survey of 150 investors.

The study has reached to following conclusions: 1- The PEX contributes the investment process and published accurate information on the trading

2-The number of brokers are not enough.

In addition to these studies, there are other studies relied on quantitative methods and statistics and rather than survey lists so as to measure the role of accounting information for investment decisions in the markets of various securities in the world. From these studies that were taken on companies listed on the London Stock Exchange, such as: Fredric, Taffler study (1995).

Or the New York Stock Exchange, such as Malcolm and Taffler (1995) study, Calahan study (1997) .

Some of studies in Madrid Stock Exchange, such as Costa (2006) study.

These studies have shown that the use of all financial information is very important when setting the prices of securities, and materiality of different elements and components that are contained in this information.

By reviewing all the above studies, there have been indicators of accounting information importance in which used for investment decisions in the securities market, and also, those investors understand the importance of accounting information for their decision of investment in these markets. On the other hand the results of these studies varied with respect to the adequacy of the information published for purposes of computing the investment in financial markets, and while the majority of studies confirmed that this information is not sufficient for the decision to invest in the securities markets, there are some studies to confirm the adequacy of such information.

INTRODUCTION his chapter deals with accounting disclosure and its importance in guiding the investment decision in the stock market, in the first section we identified the accounting as a system of information and features of this system, and the concept of data; and accounting disclosure; and types of accounting disclosure and its characteristics and restrictions on its availability and its users and finally presentation of information under IFRS.

The second section deals with the objectives of the investment decision and the types and sources of accounting information for investment decision ;and the role of accounting information in the decision; and finally the impact of accounting information asymmetry stock market, and based upon the chapter has been divided as follows:

FIRST SECTION : ACCOUNTING DISCLOSURE

 The concept of data and accounting disclosure

 The importance of accounting disclosure

 Types of accounting disclosure

 Accounting disclosure under IFRS

SECOND SECTION :GUIDING THE INVESTMENT DECISIONS IN PALESTINE EXCHANGE

 The concept of the investment and PEX

 Objectives of the investment decision

 Types of accounting information for investment decision

 The sources to obtain the accounting information for decision- making

 Effect of accounting information asymmetry in the stock market  The role of accounting information in the rationalization of the investment decision

FIRST SECTION

ACCOUNTING DISCLOSURE

2.1.1 THE CONCEPT OF DATA AND ACCOUNTING DISCLOSURE

The disclosure principle states that you should include in an entity's financial statements all information that would affect a reader's understanding of those statements. Your interpretation of this principle is highly judgmental, since the amount of information that can be provided is potentially massive. To reduce the amount of disclosure, it is customary to only disclose information about events that are likely to have a material impact on the entity's financial position or financial results (GAAP, 2012)

This disclosure may include items that cannot yet be precisely quantified, such as the presence of a dispute with a government entity over a tax position, or the outcome of an existing lawsuit. Full disclosure also means that you should always report existing accounting policies, as well as any changes to those policies (such as changing an asset valuation method).

There are several definitions of disclosure which mostly have focused on present and provide information to users, actually that shows the financial position of the company and we try to address some of them:

1) Disclosure means the release, transfer, provision of, access to, or divulging in any other manner of information outside the entity holding the information (Ed Jones, 2011). 2) The submission of facts and details concerning a situation or business operation. In general, security exchanges and the SEC require firms to disclose to the investment community the facts concerning issues that will affect the firms' stock prices. Disclosure is also required when firms file for public offerings (Scott, 2003).

3) The voluntary or required release of information relevant to a security, company, fund, or anything else. In order to be listed on an exchange, a company must provide disclosure on itself by registering with the SEC and abiding by regulations that govern what information about itself that the company releases. Disclosure exists to prevent price manipulation and anything else that would disrupt the efficiency of trade (Farlex, 2011).

4) Disclosure is an intellectual property term that means one of two things.

 A disclosure is any public distribution of information about an invention, by print, demonstrations, or other means.

 Disclosure also refers to any part of a patent application process where the inventor discloses details about his invention. An adequate disclosure would let a person skilled in the area of your invention reproduce or use your invention.

While the data is a set of facts and figures with symbols and indications of certain non-classified, the decision maker will benefit from it only after treatment for the purpose of producing information that may take the form of numbers or historical facts and events on the activities of the entity (Abdul Razak, 1993)

Therefore we can say that the data is all the alternatives that reflect the reality of facts and events and numbers raw is not meaningful or significant in itself, and the advantage of being objective in nature reflect the fact that the events of certain financial messy inside the system or as a result of handling the system with other parties outside the system (environment ) and is not intended for use, and you need to manufacture (process) in order to turn him into a final product ,and the use of meaningful and useful to satisfy the need for a list of decision makers and this product is called information. information Data are processed and have a sense of the receiver or user of and have values or unexpected fact in the ongoing process of receiving or making decisions, and should add to what we know about an event or place, and explain something to the receiver does not know or unpredictable. (Fayoumi, 1992)

Therefore we can say that information is a real-valued or expected in the ongoing or future decision-making and any set of data arranged in a certain (operation and processing) for use by a particular person in a particular purpose at a specific time which is subjective in nature, to link that person is a final product, and functions to increase the user has to know the person and explain to user something does not know and cannot be predictable with the observation that all data and facts but not all the information facts, information, and is considered one of the individuals maybe data for another individual .

2.1.2 THE IMPORTANCE OF ACCOUNTING DISCLOSURE The disclosure is an effective tool for improving investor protection. Without good disclosure, it is easy to take advantage of minority investors. Of course, with any disclosure regime some of the responsibility for protecting the investor is shifted to the investor himself. However, informed self-interest has proven to be quite effective. With good information, the perception of risk in the markets is reduced, as is the cost of capital.

Even very small changes in interest rates and the cost of capital can have a large impact on the economy as a whole. It also encourages better management of enterprises. Disclosure regimes do not appear to be designed for this purpose but better markets and better disclosure seem to make for better companies. The common wisdom is that “you manage what you measure”. The corollary is, of course, “out of sight, out of mind”. Better-run companies, in turn, contribute to greater economic efficiency and a greater capacity to generate wealth. This is important since it is not only the investor that benefits. The whole society has something to gain. In short, good information allows for more informed, more rigorous economic decision making (Frederick, 2012).

Financial reporting is one of the tools for acquiring information and is a source of creating investor confidence in a market. Harmonization is one of the frequently used approaches to improve financial reporting, since the financial reporting level is considerably poor in emerging markets as compared to developed ones. Benefits of accounting harmonization include cost savings for multinational companies, enhanced comprehensiveness and comparability of different countries’ financial reports, worldwide spread of high quality accounting standards as well as practices and finally presenting low cost financial accounting standards to developing countries (Saudagaran, 2003).

Thus, the presence of an international set of accounting standards is needed. Some countries adopt International accounting standards (IAS) (which are now referred to as the International Financial Reporting Standards (IFRS)) as their national GAAP, while some other countries use IAS as guidance to develop their own accounting standards.

The purpose of accounting disclosure is to inform both current and potential investors of the accounting strategies and methods used when developing periodic corporate financial statements. These financial statements include, but are not limited to, the balance sheet, the statement of cash flows, the income statement, and the statement of stockholders’ equity. The full disclosure principle requires that any event that would have an impact on the financial statements should be disclosed (Nuttall, 2012).

As has been seen quite often in recent years, the importance of disclosing complete and accurate accounting information can have huge and lasting effects on the individuals, families, competitors, creditors, investors, markets, and many other groups associated with large corporate firms. These groups are known in the accounting world as stakeholders in the company. Financial statements are used by both internal users and external users. Internal users use the financial statements to plan for the future.

2.1.3 TYPES OF ACCOUNTING DISCLOSURE The accounting disclosure respect to all relations with the financial statements in terms of the content of the terms and quantitative information or descriptive, and the presentation of these items, style and information within each list, as well as accounting policies that are followed in the measurement to determine the value of each item, to help users of these lists in the make good decisions and reduce uncertainty they have about economic events in the future, and represents the main financial reports, and noted that the financial reports the most comprehensive reports , and at how much appropriate information to be disclosed there are three levels of disclosure are:

1) Adequate disclosure: Adequate disclosure in accounting practices mandates that all readers of a financial statement have access to pertinent data that would be deemed essential to understanding a company's financial position. Adequate disclosure requires that key facts are included within the financial statement to help investors and creditors adequately assess the financial situation of a particular company.

2) Full disclosure: The general need in business transactions for both parties to tell the whole truth about any material issue pertaining to the transaction.

The law requires full disclosure from companies that wish to be publicly traded on the major PEX exchanges. By enforcing this rule, the PEX attempts to instill confidence in investors that the financial marketplace is efficient and transparent so that individual investors can take part in it for material profit. 3) Fair disclosure: The rule mandates that all publicly traded companies must disclose material information to all investors at the same time.

The regulation sought to stamp out selective disclosure, in which some investors (often large institutional investors) received market moving information before others (often smaller, individual investors).Most of the corporate announcements are issued in press releases or during the conference calls and are summarized at websites.

4) Informative disclosure: This type confirms on the content of the information provided, focusing on the appropriateness of decisions to be taken, therefore, while the above three concepts focus on the amount of information that should be included in financial reports (yousef, 2010).

2.1.4 ACCOUNTING DISCLOSURE UNDER IFRS

Financial statements shall present fairly the financial position, financial performance and the cash flows of the entity. Fair presentation requires the faithful presentation of the transactions, other events, and condition in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Framework. The application of IFRS, with additional disclosure when necessary, is presented to result in financial statements that achieve a fair presentation. (IAS 1, Para 15)

An entity whose financial statements comply with IFRS shall make an explicit and unreserved statement of such compliance in the notes. Financial statements shall not be described as complying with IFRS unless they comply with all the requirements of IFRS. (IAS 1, Para 16) The accounting standard IFRS 7 requires entities to provide disclosures in their financial statements that enable users to evaluate the significance of financial instruments, the nature and extent of risks arising from them and how entities manage those risks. On this page you can access a range of articles, books and online resources providing quick links to the standard, summaries, guidance and news of recent developments.

The objective of this IFRS is to require entities to provide disclosures in their financial statements that enable users to evaluate:

1) The significance of financial instruments for the entity’s financial position and performance.

2) The nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the end of the reporting

period, and how the entity manages those risks.

An entity shall disclose in the summary of significant accounting policies:

1) the measurement basis (or bases) used in preparing the financial

2) The other accounting policies used that are relevant to an understanding of the financial statements.

It is important for an entity to inform users of the measurement basis or bases used in the financial statements (for example, historical cost, current cost, net realizable value, fair value or recoverable amount) because the basis on which an entity prepares the financial statements significantly affects users’ analysis. When an entity uses more than one measurement basis in the financial statements, for example when particular classes of assets are revalued, it is sufficient to provide an indication of the categories of assets and liabilities to which each measurement basis is applied.

Deciding whether a particular accounting policy should be disclosed, management considers whether disclosure would assist users in understanding how transactions, other events and conditions are reflected in reported financial performance and financial position. Disclosure of particular accounting policies is especially useful to users when those policies are selected from alternatives allowed in IFRSs. An example is disclosure of whether a venture recognizes its interest in a jointly controlled entity using proportionate consolidation or the equity method (see IAS 31 Interests in Joint Ventures). Some IFRSs specifically require disclosure of particular accounting policies, including choices made by management between different policies they allow. For example, IAS 16 requires disclosure of the measurement bases used for classes of property, plant and equipment.

An accounting policy may be significant because of the nature of the entity’s operations even if amounts for current and prior periods are not material. It is also appropriate to disclose each significant accounting policy that is not specifically required by IFRSs but the entity selects and applies in accordance with IAS 8.

An entity shall disclose, in the summary of significant accounting policies or other notes, the judgments, apart from those involving estimations (see paragraph 125), that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognized in the financial statements.

In the process of applying the entity’s accounting policies, management makes various judgments, apart from those involving estimations, that can significantly affect the amounts it recognizes in the financial statements. For example, management makes judgments in determining:

 Whether financial assets are held-to-maturity investments;

 When substantially all the significant risks and rewards of ownership of financial assets and lease assets are transferred to other entities;

 Whether, in substance, particular sales of goods are financing arrangements and therefore do not give rise to revenue; and

 Whether the substance of the relationship between the entity and a special purpose entity indicates that the entity controls the special purpose entity.

Some of the disclosures made in accordance with paragraph 122 are required by other IFRSs. For example, IAS 27 requires an entity to disclose the reasons why the entity’s ownership interest does not constitute control, in respect of an investee that is not a subsidiary even though more than half of its voting or potential voting power is owned directly or indirectly through subsidiaries. IAS 40 Investment Property requires disclosure of the criteria developed by the entity to distinguish investment property from owner-occupied property and from property held for sale in the ordinary course of business, when classification of the property is difficult (IAS 1, IFRS 7). SECOND SECTION

GUIDING THE INVESTMENT DECISIONS IN PALESTINE EXCHANGE

2.2.1 THE CONCEPT OF THE INVESTMENT AND PEX

The word "investment" can be defined in many ways according to different theories and principles. It is a term that can be used in a number of contexts. However, the different meanings of "investment" are more alike than dissimilar. Generally, investment is the application of money for earning more money. Investment also means savings or savings made through delayed consumption. According to economics, investment is the utilization of resources in order to increase income or production output in the future.An amount deposited into a bank or machinery that is purchased in anticipation of earning income in the long run are both examples of investments. Although there is a general broad definition to the term investment, it carries slightly different meanings to different industrial sectors. According to economists, investment refers to any physical or tangible asset, for example, a building or machinery and equipment. On the other hand, finance professionals define an investment as money utilized for buying financial assets, for example stocks, bonds, bullion, real properties, and precious items.According to finance, the practice of investment refers to the buying of a financial product or any valued item with an anticipation that positive returns will be received in the future (jose, 2011).

2.2.1 Palestine Exchange (PEX)

Palestine Exchange (PEX) was established in 1995 to promote investment in Palestine. The PEX was fully automated upon establishment- a first amongst the Arab Stock Exchanges. The PEX became a public shareholding company in February 2010 responding to principles of transparency and good governance. The PEX operates under the supervision of the Palestinian Capital Market Authority.

The PEX strives to provide an enabling environment for trading that is characterized by equity, transparency and competence, serving and maintaining the interest of investors.

The PEX is very appealing in terms of market capitalization, it is financially sound, and well capitalized to maintain a steady business in a volatile world, as it passed with the minimum level of impact of the global financial crisis compared to other MENA Exchanges.

There are 46 listed companies on PEX as of 31/12/2011 with market capitalization of about $ 2.8 billion across five main economic sectors; banking and financial services, insurance, investments, industry, and services. Most of the listed companies are profitable and trade in Jordanian Dinar, while others trade in US Dollars. Only stocks are currently traded on PEX, but there is potential and readiness to trade other securities in the future.

In 2009, the PEX ranked thirty third amongst the worldwide security markets, and regionally comes in second in terms of investor protection. PEX Vision

The PEX seek to be a model for Arab and regional financial markets, through providing innovative services, proposing ideal investment opportunities in securities, attracting investments, the use of state of the art technology, compliance to the rules of corporate governance and establishing constructive relations with Arab, regional and global markets.

PEX Mission

To provide a fair, transparent and efficient market for trading securities that serves investors, protects their interests, contributes to creating an enabling environment that attracts local and foreign investments, and interacts with local and Arab relevant institutions in a manner that serves the national economy and enhances the culture of investment in financial markets.

PEX Objectives

 To provide a safe and enabling trading environment characterized by efficiency, fairness and transparency.

 To increase the investment awareness of the local community and enhance PEX relations with local, Arab and international economic institutions and forums.

 To develop domestic investments and attract Palestinian diaspora & foreign capital.

 To increase the depth of the exchange by continuously listing new companies and providing new and diverse financial tools and services.

 To create a proficient working environment within the PEX by investing in human capital and maintaining an up-to-date technologies of stock markets. There are many reasons to invest in the Palestine Exchange:

1. Small yet robust.

2. Great spring back potential.

3. Tried & tested.

4. Undervalued stocks.

5. Evolving and efficient regulatory environment within international best practice.

6. No restrictions on foreign investment or taxation of capital gains, no foreign exchange restrictions. PEX Regulatory Framework

In 2005, with the development of the legal structure of the securities sector in Palestine, particularly the issuance of the Securities Law No. (12) of 2004 and the Capital Market Authority Law No. (13) of 2004, the Palestine Capital Market Authority (CMA) took over the responsibility of supervising the PEX and issuing securities by the public shareholding companies.

The PEX operates in accordance with the Securities Law No. (12) of 2004, and the bylaws that stemmed from it in a manner that does not contravene with the CMA directives.

The PEX works also in accordance with modern regulations, which form a strong basis to ensure a fair trading environment. These regulations include: listing regulation, trading regulation, disclosure regulation, membership regulation, dispute resolution regulation and the regulation of professional conduct (www.pex.ps).

2.2.2 Objectives of the investment decision Any investment decision will be influenced by three objectives – security, liquidity and yield. A best investment decision will be one, which has the best possible compromise between these three objectives.

Individually these objectives are very powerful in influencing the investors. Collectively they work against each other forcefully, as can be seen below. Hence the acclaim – A best investment decision will be one, which has the best possible compromise between these three objectives.

When selecting where to invest our funds we have to analyze and manage these three objectives.

 Security: Central to any investment objective, we have to basically ensure the safety of the principal. One can afford to lose the returns at any given point of time but s/he can ill afford to lose the very principal itself. By identifying the importance of security, we will be able to identify and select the instrument that meets this criterion. For example, when compared with corporate bonds, we can vouch safe the safety of return of investment in treasury bonds as we have more faith in governments than in corporations. Hence, treasury bonds are highly secured instruments.

 Liquidity: Because we may have to convert our investment back to cash or funds to meet our unexpected demands and needs, our investment should be highly liquid. They should be en cashable at short notice, without loss and without any difficulty. If they cannot come to our rescue, we may have to borrow or raise funds externally at high cost and at unfavorable terms and conditions. Such liquidity can be possible only in the case of investment, which has always-ready market and willing buyers and sellers. Such instruments of investment are called highly liquid investment.  Yield: Yield is best described as the net return out of any investment. Hence given the level or kind of security and liquidity of the investment, the appropriate yield should encourage the investor to go for the investment. If the yield is low compared to the expectation of the investor, s/he may prefer to avoid such investment and keep the funds in the bank account or in worst case, in cash form in lockers. Hence yield is the attraction for any investment and normally deciding the right yield is the key to any investment.

 Relationship: There is a tradeoff between risk (security) and return (yield) on the one hand and liquidity and return (yield) on the other (Mclaney, 2010).

Normally, higher the risk any investment carries, the greater will be the yield, to compensate the possible loss. That is why, ‘fly by night’ operators, offer sky high returns to their investors and naturally our gullible investors get carried away by such returns and ultimately lose their investment. Highly secured investment does not carry high coupon, as it is safe and secured. When the investment is illiquid, (i.e. one cannot get out of such investment at will and without any loss) the returns will be higher, as no normal investor would prefer such investment.

These three points – security, liquidity and yield in any investment – make an excellent triangle in our investment decision-making. Ideally, with given three points of any triangle, one can say the center of the triangle is fixed. In our investment decision too, this center – the best meeting point for S, L and Y – is important for our consideration.

However, if any one or two of these three points are disturbed – security, liquidity and yield in any investment – the center of the triangle would be disturbed and one may have to revisit the investment decision – either to continue the investment or exit the investment.

All these points: security, liquidity and yield – are highly dynamic in any market and they are always subject to change and hence our investor has to periodically watched his/her investment and make appropriate decisions at the right time.

If our investor fails to monitor her / his investment, in the worst circumstances, s/he may lose the very investment.

Thus, we will return to our original statement - A best investment decision will be one, which has the best possible compromise between these three objectives – security, liquidity and yield (Guruswami, 2010).

2.2.3 Types of accounting information for investment decision

Investors pore over companies' accounting statements to find the next economic gems, that is, businesses with promising products that will deliver blockbuster returns. In reviewing corporate performance summaries, financial-market participants focus on various reports, including balance sheets and statements of profit and loss. Investors also keep a close eye on corporate operating ratios, also known as performance metrics.

Characteristics of Useful Information in Accounting

1. Statement of Financial Accounting Concepts(SFAC) o SFAC 1, the first statement, describes the objectives of financial reporting. Creditors, such as credit unions and banks, and investors such as stock and bond holders, are the primary audience. Creditors and investors are expected to know enough about accounting that they can read a financial statement. These parties need to know whether a company is likely to pay off its debts, and what type of return they will receive by investing in the company.

2. Relevance

o SFAC 2 defines specific terms that relate to accounting information: relevance and reliability. Relevant information includes recent accounting records. For a debt holder, relevance includes information such as how much debt the company currently holds, what interest rate the company is paying to other creditors, and whether the company will need to take out additional loans in the future to cover its operating expenses.

3. Reliability

o Reliability is another characteristic of financial information. A reliable accounting document includes information that an investor believes is accurate. A company can show that its accounting records are accurate by hiring an independent accountant to report on the records. Auditors check the records to make sure they conform to Generally Accepted Accounting Principles, or GAAP. An unqualified audit report means that the auditor found no major, or material, problems with the financial information in the company records and it is considered reliable. 4. Comparability and Consistency

o SFAC 2 includes secondary characteristics, comparability and consistency, according to the University of Mississippi. To be useful, accounting records should allow comparison to similar records. An investor will want to look at financial statements going back several years to see if the company is improving its financial position. The records must be consistent. Accountants have to recalculate information if the company changes its inventory tracking method, for example.

5. Future Earnings

o Accurate accounting information provides information about future earnings. According to Western Kentucky University, accrual-based records are more useful than records calculated on a cash basis. The company may not receive a cash payment this quarter, but if it will receive a check next quarter because of a current sale, the accrual method still records the transaction as current revenue.

Analyzing corporate solvency enables investors to set financially viable companies apart from moribund firms. In a global marketplace in which companies interact with international business partners, investors generally make sure companies have sufficient cash to operate domestically and overseas. Securities-exchange participants use balance sheet information to appraise corporate solvency. Specifically, they review a firm's assets, liabilities and equity capital. Net worth, or assets minus liabilities, is an important indicator that lifts the veil on a company's ability to repay its debts. For businesses, being able to meet financial commitments is important. Consequently, investors with a long- term perspective want to make sure companies will still be in business in five or 10 years.

Corporate profitability is a constant priority for stock-exchange players, especially those who make long-term investment bets. Appraising a firm's profitability trends requires analytical skills, attention to detail and financial acumen. When reviewing corporate profitability, investors sift through various accounting reports, including statements of profit and loss, budgets and financial ratios. Reporting consistently positive results is a confidence-building exercise for companies, as it improves corporate reputation in the investment community. Financial metrics covering corporate profitability include gross profit margin, which equals total sales minus costs of goods sold divided by total sales. The ratio calculates how much a firm earns on each dollar of sales.

Publicly listed companies must disclose information related to operating liquidity movements, indicating to investors and the public how much cash is in corporate coffers. Disclosure requirements are stricter for large, multinational companies that borrow on major securities exchanges, such as the New York Stock Exchange and Tokyo Stock Exchange. Failure to provide sufficient explanation about corporate cash inflows and outflows may cause a firm to come under regulatory scrutiny. A corporate statement of cash flows indicates a firm's liquidity movements that cover operating, investing and financing activities.

Before making investment bets, financial-market players seek to understand current players who are already in the game. In other words, investors who want to purchase a company's equity shares generally sift through the list of current shareholders. This in-depth, systematic review is key because it enables potential stockholders to gauge investors' faith in the company. A corporate equity statement indicates accounting data relating to equity capital holders. 2.2.4 The sources to obtain the accounting information for decision- making

Accounting information comes from internal sources in the organization, because the accounting system in the organization is the source of the accounting information, financial statements that prepare by the accounting system include the accounting information that needed by the users. Financial statements: are records that provide an indication of an individual’s, organizations, or business's financial position. Financial position: refers to a company’s economic resources, such as cash, inventory, and buildings, and the equities and liabilities against those resources at a particular time. There are four basic types of financial statements statement of financial position, Income statements, statement of cash flow and statement of retained earnings. Types of financial statements:

1. Statement of financial position:

It presents a summary statement of the firm‘s financial position at a given point in time, the statements of financial position are used to provide insight into a company’s assets and debts at a particular point in time, and provide information about the company’s shareholder equity, the company lists its assets on the left side of the balance sheet and its debts and liabilities on the right.

2. Income statements: The income statement provide a financial summary of the firm‘s operating results during specific period, and present information concerning the revenue earned by a company in a specified time period. Income statements also show the company’s expenses in attaining the income and shareholder earnings per share.

3. Statement of cash flow: The statement of cash flow provides a look at the movement of cash in and out of a company; these financial statements include information from operating, investing, and financing activities. The cash-flow statement can be important in determining whether or not a company has enough cash to pay its bills, handle expenses, and acquire assets.

4. Statements retained earnings: The statement of retained earning presents the changes in a company's or organization’s retained earnings over a specific period of time. These statements show the beginning and final balance of retained earnings, as well as any adjustments to the balance that occur during the reporting period. This information is sometimes included as part of the balance sheet or it may be combined with an income statement. However, it is frequently provided as a completely separate statement. In order to the accounting information to be useful, the accountant must be clear about for whom the information is being prepared and for what purpose the information will be used. There are likely to be various groups of people with an interest in a particular organization, in the sense of needing to make decisions about that organization (Moller.jack, 2009). There are several user groups with an interest in the accounting information relating to a business. The majority of these are outside the business but, nevertheless, they have a stake in the business. This is not meant to be an exhaustive list of potential users; however, the groups identified are normally the most important. Accounting system prepares its financial report which includes accounting information in both internal and external report. Management accounting deal with the information that is needed for the internal users and financial accounting focus on the information that is needed for the external users. Managerial accounting: Provides internal decision makers who are charged with achieving the goals of profitability and liquidity with information about financing, investing, and operating activities.

Financial accounting: Generates reports and communicates them to external decision makers so they can evaluate how well the business has achieved its goals (romney, http://www.accounting-tutorial.com/users-accounting-information, 2008). The most important of these groups are shown in Figure 2.6.

FIGURE. 2

A. Internal users: Parties inside the reporting entity or company who are interested in accounting information. Types of internal users include:

1. Management: Management in every level of the business from director level to supervisor level relies on accounting information to do their job properly. They all use the same information for different purposes. For example, directors use it for strategic purposes and middle management can use it to see if they are meeting their financial targets.

2. Investors: Investors generally provide money to individual or organization to start a business. Before investing money investors generally want to know whether they should invest or not or if they would invest to start a business now then how much return they will get from their investment. The investors will decide based on the financial accounting information of that business.

3. Employers: Employers use accounting information for their own benefit, accounting information help the employee to ensure their future benefit from the company like pension, health provision, retirement benefit etc.

4. Owners: Business owners want to know whether their funds are being properly used or not. Accounting information helps them to know the profitability and the financial position of the concern in which they have invested their funds. B. External users: Parties outside the reporting entity or company who are interested in the accounting information. Types of external users include:

1. Shareholders: Shareholders use the balance sheet and profit and loss account produced by limited companies to decide if they are going to increase or decrease their holding.

2. Creditors: Creditors (lenders) are generally focused on the information which is related to the borrower before making a large loan such as the Bank (creditors) will want information about the borrower regarding some criteria: the ability of the borrower to repay the loan, the amount of assets and liabilities of the borrower, evidence of income, tax policies and so on. The creditors will make the loan after having this detail information through financial accounting statement of the borrower.

3. Government Regulatory Agencies: Government regulatory agencies like Federal and State Government Agencies and Security and exchange commission want financial accounting information which is related to the investors, business organization or any individuals, these regulatory agencies want the information to know that whether the business organization are following the business rules and regulation or not or whether the investors are able to invest or make decision or not, Security and exchange commission want accounting information to evaluate the financial accounting disclosures of companies who sell their share or borrow money.

4. Taxing authority: Taxing authority wants financial accounting information related to tax policies, tax laws, amount of payable tax etc. from the individual or organization., taxing authority wants financial accounting to know that the business organization are following tax rules or not and their ability to pay income tax because income tax is based on the financial accounting reports.

5. Labor unions: Labor unions want accounting information to know their future salary.

6. Suppliers: Suppliers want to know about company‘s future goals so that they can serve best material in coming days.

7. Customers: Sometimes customer also want to know about company on issues like warranty, product development etc.

2.2.5 Effect of accounting information asymmetry in the stock market

Information asymmetry can be defined to Conditions in which at least some relevant information is known to some but not all parties involved. Information asymmetry causes markets to become inefficient, since all the market participants do not have access to the information they need for their decision making processes opposite of information symmetry.

Another definition is a situation in which one party to a transaction has information about the transaction to which the other party is not privy. Asymmetric information may result in a bad deal for one party (often but not always the buyer). To give an extreme example, the seller of real estate may know that his property is lined with land mines. This would ordinarily result in a (steep) drop in price, but if the buyer does not know this, it may not. Asymmetric information is not as prevalent as it once was because of increased transparency and legal requirements for disclosure, as well as better technology. Indeed, trading securities with asymmetric information is often illegal. See also: Insider trading, moral hazard, adverse selection.

Information asymmetry often caused the imbalance interests between market participants, impacts social the principles of equity, justice and the allocation of resources more efficient in the market. How the degree of information asymmetry is in the stock market can be reflected from a perspective of a country's state of development of the stock market. Information asymmetry is the root causes of caused stock miss-pricing of the stock market, contrary to the "fair, just and open" principle.

A stock issue is the representative of the property ownership of the proceeds of a legal document under the law. Stock products is a special kind of commodity, its main particularity is decided by the special value decision way. Securities investment value depends primarily on its expected return to investment in shares as an example; the expected return on investment in shares includes two parts: the first part is expected dividends; the second part is expected capital gains. Expected dividend depends on the size of two aspects: first, the company's future earnings expectations; second, the company's future dividend distribution policy. The company's future profit status and expected the financial situation of companies now expected operating results, business environment and operational decision-making is closely related. These factors in the stock market directly for the information, transaction information on the control of the main level and ability to judge the difference, formed asymmetric information, resulting in the value of securities prices and the departure from. Its main performance information asymmetry: (1) information asymmetry between the government and the listed company; (2) information asymmetry between listed companies and investors; (3) information asymmetry between well-funded large organizations and large the retail; (4) information asymmetry between the broker and investor.

The so-called asymmetric information is that market transactions on the two sides to deal with the subject or content of information in terms of quantity and quality are not equal. Party transactions have frequently manifests itself even more complete information, while the other has only less information, which may lead to decision-making information vulnerable to mistakes in transactions, or information to the advantage of information not conducive to the behavior of the disadvantaged. In the market activity, as traders of the limited nature of knowledge, information needs to spend search costs, as well as information superiority to the monopoly of information, resulting in asymmetric information is a widespread and long-standing economic phenomena. To sum up, there are at least the following information asymmetries several forms:

1. The sources of information asymmetry

In the securities market, sources of information asymmetry exists both cases. The stock market is a situation where the funding is to always listed companies than investors a better understanding of the company's business, with more information; another case is a stock market listed company is the issuer of its shares, but it is also its shares to secondary market transactions. As traders in the market where the potential of different information, which will certainly affect their trading interests and transaction costs.

2. The asymmetric of time information

Commodity on the market or trading in the same side (as buyer or seller) in the same market need to buy or sell the same goods or securities, Since receiving the information commodities or securities of the time difference, they often lead to early access to information relating to securities or commodities trading, to a more active or more accurately, to make trading decisions earlier choice of acquisition advantage, and access to information while late trading passively in the transaction at a disadvantage, and even suffer losses.

3. The asymmetry of amount of information

Commodity on the market or trading in the same side (as buyer or seller) because in the same market access to trading partners the number of different content, but also lead to dealer transactions potential differences and transaction costs, interest differences.

4. The asymmetry of quality of the information

Commodity on the market or trading in the same side (as buyer or seller) because in the same market access to trading partners difference in the quality of information, that is, the authenticity of different information, which is bound to affect the interests of traders transactions and transaction costs.

5. Information confusion Commodity on the market or trading in the same side (as buyer or seller) acquisition of information objects, a value can be observed by the two mixed together does not directly identify the components of the information, causing confusion information, transactions are difficult to identify. For example, companies listed on stock market earnings per share is the value can be observed, it may be the enterprise income from continuing operations and a one- time dual mixture of income.

Causes of Asymmetric Information for the Securities Market

Information asymmetry is the root causes of caused securities miss-pricing of the stock market, contrary to the "fair, just and open" principle and undermines the effectiveness of the securities market and lead to market failure.

3.1 Subjective reasons

1. The interests of listed companies

At present, the issuance of securities have higher standards and requirements, the issuance of securities implement more stringent screening system. Some enterprises have enough securities issuance, listing standards, but in order to achieve "Physically," The purpose of resorting to deception, concealment deception, a means of fictitious profits. To some enterprises in the issuance of securities, issuing new shares or cash, develop higher prices to raise more funds, often with the Securities underwriters, accountants offices, and other intermediary agencies collusion, making false financial statements, manipulation profit; At the same time, some organizations securities research institutions, the author of a number of stock analysts who met with the company's articles, comments and deceive investors.

2. Affiliated transactions of listed companies listed companies are mostly come from the restructuring of state-owned enterprises, state-owned shares, legal person shares, the public shares and other equity coexist, and a large number of state-owned shares and legal person shares is not presently listed in circulation, and circulation to the public only the total average shares about one-third of equity. Shares segmentation caused unreasonable shareholding structure, there has been "shares with different rights, different stocks with profit" phenomenon, will easily lead to affiliated enterprises and listed companies the linkages between trade, a "black-box operations," such as fund-raising investment projects, issuing new shares and cash, the reorganization of assets, procurement and sales and other areas often associated, and investors are ignorant, and the results will inevitably lead to stock market information asymmetry. In addition, many listed companies in turn, through its group companies in the divestitures, asset restructuring and integration of the listing, company and the listed company formed between the interests of the unity between the opposition and are prone to the transactions. The numbers of listed companies tend to adopt unfair and unreasonable disclosure of information, contrary to the principle of public disclosure of information, thus easily lead to stock market information asymmetry.

3. The existence of the information cost

Some securities markets are still a non-effective market, securities prices can not reflect all the information in advance to have more access to information or information investors receive exorbitant profit. However, access to information is collected and the need to spend a certain costs, investors priority access to information or to obtain more information, we must pay the cost information. For investors, willing to obtain information on costs and expected benefits of information, if the information costs than expected earnings, investors have access to information the impetus to the contrary, if the expected return is less than the cost of information, there is no driving force. Generally speaking, as institutional investors have experienced professionals, and the strength of capital, advanced communications facilities, they are often greater than the expected return information costs and are willing to pay a certain cost information to advance or have more access to information , more accurate information; And individual investors, especially small and medium investors, often due to the expected return is less than the cost information are reluctant to spend too much time and money capital to access to information, this will result in asymmetric information.

4. The appearance of insider dealing

Because insider trading may have a greater impact on the securities market, thus countries in the world, especially the developed countries, the monitoring of insider trading are very strict. For example China's insider trading regulation also introduced a number of measures, but in the process of practice is the lack of workability, and the insider trading is often difficult to define; At the same time, the use of insider information for insider trading related personnel lesser penalties, making insider trading between the costs and benefits of a serious asymmetry. Such distorted information transmission channels of normal behavior in the interests of investors at the same time, but also makes investors spent a tremendous amount of energy he gave insider information to form the abuse of information resources, resulting in the securities market information asymmetry.

3.2 Objective reasons

1. The lack of effective supervision of the securities market

At present, stock market regulators more, in addition to the China Securities Regulatory Commission as a specialized regulatory body, but also the Ministry of Finance, People's Bank, the SAC and other agencies from different angles on the management and supervision of the securities market, thus forming the stock market bulls monitoring the situation. This, to some extent, undermined the authority of the Commission to enable it to effectively organize and carry out securities market regulation. At the same time, various departments in the formulation of policies and regulations, often from the interests of the sector, making some lack of coordination between policies and regulations, and even in conflict with each other, making the securities market at a loss. As our country's lack of effective supervision of the securities market, which is the breeding of information asymmetries.

2. Lack of Credit of listed companies

At present, the Credit Loss of listed companies for example in China are more serious, and has become a universal phenomenon, to the healthy development of the securities market has brought many negative effects. Lack of Credit listed companies will often lead investors to collect information, identify information and the rising costs of handling information, so that part of investors, especially small and medium investors, the driving force decreased access to information, this will easily lead to stock market information asymmetry.

3. A non-standard of securities intermediaries operating

Some securities intermediaries in the process of the operation of non-standard, non-operation of frequently have disrupted the normal order of the securities market. At the same time, some employees of securities intermediaries ethics and the practice of poor quality, for themselves and their immediate interests, or because of the pressure on the parties concerned, or for their own interests to consider, as a listed company advice, the preparation of false financial statements , or face false report float. The result will make the disclosure information of listed companies will decreased the effectiveness, resulting in the securities market information asymmetry.

4. Imperfect corporate governance structure of listed companies

In recent years, to establish a modern enterprise system as the goal of the corporate reform has been quite successful, but the corporate governance structure of listed companies is not perfect, "due to the dominance of," "the absence of the owner" still quite serious. The corporate governance structure is imperfect, makes a listed company to disclose information, the more arbitrary, it is difficult to guarantee the authenticity of the information, completeness and timeliness of this will inevitably lead to stock market information asymmetry.

The main stock market transactions grasp the extent of the information and judge the differences in the ability to form asymmetric information, resulting in the value of securities prices and the departure from. Stock market information asymmetry is a common phenomenon is not unique to securities market, is widely found in all of the securities market. The stock market is the degree of information asymmetry can be reflected from a perspective of a country's state of development of the securities market.

Information asymmetry is caused securities miss-pricing the root causes of the stock market, contrary to the "fair, just and open" principle and undermines the effectiveness of the securities market and lead to market failure.

INTRODUCTION

his chapter addresses to display and analyze of data research project through to identify all methods and tools used to complete the research and describe the research community appointed by the search tool used and its components and check whether they are true to the test as well as addresses the characterization of the sample and then choose the hypotheses.

The chapter is divided into:

3.1 Research Methodology

3.2 Society and the research sample.

3.3 Research tool

3.4 Validity and reliability of questionnaire

3.5 Statistical treatments used.

3.6 Describe the characteristics of the sample.

3.7 Testing the hypotheses. 3.1 Research Methodology a. Method of analysis

Whereas this research aims to highlight the importance of accounting information, and test the investors’ understanding and knowledge of the Palestine Securities Exchange of accounting information contained in financial reports, and the extent of use of such information in the investment decision, we will support this research on the descriptive analytical method as an one of the most methods used in the study of social phenomena and humanity, but it fits research topic and there has been relied on analysis of data collected on a program of statistical analysis (SPSS), and the application of some of the tests were accepted in order to reach some proposed conclusions and recommendations. b. Methods of data collection

This research would depend on both the sources of secondary data and primary data sources so as the following:

 Primary data sources: this research would ssubstantially depend on a research questionnaire was designed and distributed to answer the research questions for the purpose of knowing the importance of accounting information to the investor on PEX, and the extent of adoption in the investment decision, understanding, awareness and use them, and the obstacles that hinder the use of such information.

 Secondary data sources: This research would base on some sources of secondary data, represented mainly in the books, references, researches, studies and specialized magazines and some related sites on the World Wide Web (Internet), which dealt with such research, as well as brochures and annual reports published by the Palestine Securities Exchange. 3.2 Society and the research sample

Research community is made up of groups of investors in the market of PEX, and will include sample items from all categories of investors in the market .Online in the Gaza Strip, and will be excluded categories of investors in the West Bank to the difficulty of reaching them. The researcher distributed 40 questionnaires on a sample of different categories from the society and the questionnaires was distributed in Arabic language and then translated to English language.

The distribution process and the recovery of questionnaires was approximately take (14) days after recovery and resolution reviewed and checked and coded and then entering to the computer.

3.3 Research tool

The researchers used to collect data on two main types of data ,first books and periodicals while the second is a questionnaire (Appendix 1 and 2), after viewing the studies, it was designed the questionnaire in the light of the objectives of the research and to answer the questions posed in the problem and research hypotheses as appropriate and required.

Questionnaire was divided into two parts as follows:

Part I: It consists of several questions related to general information about the investors and it contains on (11) paragraphs such as: age, academic qualifications and field of activity and other information.

Part II: consists of five scopes as follows

The first scope: It contains (13) paragraphs deal with the degree of importance of accounting information to rationalize the investment decisions and aims to measure the extent of investor awareness of the importance of accounting information.

The second scope: It contains (9) paragraphs deal with the degree of availability of accounting information in financial reports and is designed to measure the adequacy of accounting information in financial reports.

The third scope: It contains (9) paragraphs deal with the degree of using accounting information to streamline the investment decision and are designed to measure the extent of the use of accounting information to streamline the investment decision.

The fourth scope: It contains (14) paragraphs deal with the degree of influence of other information not contained in the financial statements on the investment decision and aims to measure the existence and availability of other information not included in the financial statements that may affect the investment decision.

The fifth scope: It contains(14) paragraphs deal with the obstacles using of accounting information in the guiding of investment decision and it aims to measure the existence and availability constraints of accounting information in the guiding the investment decision.

3.4 Validity and reliability of questionnaire

Intended to be the questionnaire able of measuring and designed to achieve the objectives of the research, divided in two ways: a) Content sincerity: The researchers have prepared a questionnaire of the research by concerning the extent of investors' perception on the PEX for the importance of the use of accounting information for guiding their investment decisions, and through access to previous studies and reference theory on this subject, then it were presented questionnaire in its initial to some academics and those who have experience and to share investment in the financial market in order to be guided by their opinions of the paragraphs contained in the questionnaire. The researchers took the views and tips of professionals in some paragraphs that are not related to the subject of questionnaire, as amended paragraphs, until the picture was reached the final of the questionnaire. It was possible to questionnaire distribution on research sample that represented in investors in the market for the Palestine Securities Exchange in the Gaza Strip.

b) sincerity of internal consistency: Honestly it was Meant by the internal consistency is the consistency of each paragraph of the resolution with the domain they belong to this paragraph, it has been verified the authenticity of the internal consistency by finding the coefficients of linear correlation of Pearson between each paragraph of the questionnaire and the total score for the domain

that belongs to this paragraph, significantly it has been positive results, where the correlation coefficients indicated that there are various internal consistency of the paragraphs with areas that belong to it and following the various correlation coefficients of each paragraph with the domain to which it belongs:

TABLE NO. 2

Pearson correlation coefficients between the paragraphs of the first scope on the investor comprehend the importance of accounting information to guide the decision to invest in the PEX:

Pearson's The level correlation Item No of statistical (sig) coefficient

The provision of accounting information and use when 0 0.791 (1) making investment decisions is essential. In the light of rapid developments and the availability 0 0.756 of multiple alternatives, the provision of accounting information to (2) help in making investment decisions is inevitable.

Achieve rely on accounting information when making decisions Investment: 0.770 0 A-greater effectiveness 0.688 (3) 0 B -A lower cost.

0 0.642 C-less time. 0.761 0 D-Quality performance.

0 0.750 Advantages of accounting information provided when making (4) investment decisions to increase the capacity and skills of makers.

Providing accounting information when making investment decisions 0 0.681 to create integrated information systems utilized to streamline (5) decision-making processes

0 0.634 Using accounting information in making investment decisions to (6) reduce the degree of risk.

0 0.616 The use of accounting information to rationalize investment decisions (7) affect the nature and quality of the stock investor

0 0.758 The use of accounting information to achieve a higher degree of (8) integration and interrelationship between investment decisions

The use of accounting information for decision-making provides the 0 0.719 capacity and skills sufficient to achieve the objectives of investment (9) optimally.

The use of accounting information to rationalize investment decisions 0 0.700 provides a set of regulatory measures to ensure the safety of the (10) decisions taken and detect errors if they occur The level of statistical significance when α = 0.05

Observed through the previous table that all the factors Pearson correlation between each paragraph of the first area, amounting to (13) paragraphs and the total score for the scope statistically significant at the level of α = 0.05 .This refers to the internal consistency of the large paragraphs of the first area. TABLE NO. 3

Pearson correlation coefficients between the paragraphs of the second area on the availability of accounting information in financial reports to rationalize the investment decision.

Pearson's The level correlation Item No of statistical (sig) coefficient

0.748 0 Companies provide information on retained earnings. (1)

0 0.742 Companies provide information on the proportion (2) of planned distributions to shareholders.

0 0.797 Companies provide information on changes in the capital. (3)

0 0.731 Companies provide information on earnings per share. (4)

0 0.835 Companies provide information on the fair value of the items of (5) assets and liabilities.

0 0.836 Companies provide information on the most gains confirmation or at (6) least confirmation of the potential loss.

0 0.735 Companies provide information about the cumulative impact of (7) the change of accounting policies

0 0.734 Companies provide information on reports of periodic (8) financial statements.

0 0.746 Companies provide information on the auditor's assessment of (9) the efficiency of management in the preparation of budgets. The level of statistical significance when α = 0.05

Observed through the previous table that all the factors Pearson correlation between each paragraph of the second area, amounting to (9) paragraphs and the total score for the scope statistically significant at the level of α = 0.05. This refers to the internal consistency of the large paragraphs of the second area.

TABLE NO. 4 Pearson correlation coefficients between the paragraphs of the third area on the degree of use of accounting information for rationalizing investment decision.

Pearson's The level correlation Item No of statistical (sig) coefficient

0 0.779 Profit and loss account. (1)

0 0.826 The balance sheet. (2)

0 0.793 Statement of Cash Flows. (3)

0 0.844 Statement of changes in equity. (4)

0 0.792 Reports of the auditor. (5)

0 0.630 Another list (6)

0 0.810 The use of accounting information to (7) compare investment alternatives to choose the best alternative.

0 0.749 The use of accounting information to make sure that the (8) rationalization of investment decision taken.

0 0.814 The use of accounting information to correct decisions, promote (9) and ensure its effectiveness.

The level of statistical significance when α = 0.05

Observed through the previous table that all the factors Pearson correlation between each paragraph of the third area, amounting to (9) paragraphs and the total score for the scope statistically significant at the level of α = 0.05. This refers to the internal consistency of the large paragraphs of the second area TABLE NO. 5

Pearson correlation coefficients between the paragraphs of the fourth area on the degree of the impact of other information are contained in the financial statements on the investment decision. Pearson's The level correlation Item No of statistical (sig) coefficient

0 0.604 Information from the tips of intermediaries. (1)

0 0.441 Information from the rumors. (2)

0 0.397 Information from the tips of friends and relatives. (3)

0 0.591 Information from market bulletins (4)

0 0.619 Information from government literature. (5)

0 0.664 Information from magazines and newspapers. (6)

0 0.761 Information from visiting companies. (7)

0 0.690 Information from the companies site on the World Wide (8) Web (Internet)

0 0.747 Directory information from the financial indicators of companies (9)

0 0.761 Publishing special reports other than the management financial (10) statements and reports.

0 0.599 Use the style of financial analysis as a tool of decision-making. (11)

0 0.720 Changes in senior management of companies. (12)

0 0.660 Notes to other external auditor. (13)

Board decisions on future expansion plans and the opening of new 0 0.457 branches. (14)

The level of statistical significance when α = 0.05 Observed through the previous table that all the factors Pearson correlation between each paragraph of the forth area, amounting to (14) paragraphs and the total score for the scope statistically significant at the level of α = 0.05. This refers to the internal consistency of the large paragraphs of the second area.

TABLE NO. 6

Pearson correlation coefficients between the paragraphs of the scope five on constraint the use of accounting information in the rationalization of investment decision. Pearson's The level correlation Item No of statistical (sig) coefficient

0 0.631 High cost of obtaining this information. (1)

0 0.486 Failure to provide accurate information and the required speed. (2)

0 0.650 Absolute lack of confidence in the methods of preparing accounting (3) information.

0 0.656 Cannot use accounting information to predict in the future. (4)

0 0.653 The difficulty of comparing investment alternatives because of the (5) different methods of preparation and disclosure

The lack of the use of accounting information is up to the following reasons:

0 0.607 A - Lack of practical experience. 0 0.683 B - lack of knowledge matters and accounting information. (6)

0 0.636 C - after the academic qualification for the accounting side.

0 0.673 D - Non-functional skills to deal with accounting information.

0 0.706 Weak control on the outcome of investment decisions without relying (7) on accounting information.

0 0.649 Not to publish periodic reports .. (8) 0 0.693 Failure to regulate the accounting and auditing profession properly in (9) Palestine.

0 0.706 Society's perception of improper accounting and accounting (10) information.

0 0.673 There is no clear law to the Palestine regarding the (11) accounting information. The level of statistical significance when α = 0.05

Observed through the previous table that all the factors Pearson correlation between each paragraph of the fifth area, amounting to (11) paragraphs and the total score for the scope statistically significant at the level of α = 0.05. This refers to the internal consistency of the large paragraphs of the second area.

In addition to the above has been calculated Pearson's correlation coefficient between the degree of each of the five areas of questionnaire and the total score of the identification and that, as in the following table:

TABLE NO. 7 Pearson correlation coefficients for the questionnaire of the five areas with the total score of the questionnaire Pearson's The level correlation Item No of statistical (sig) coefficient

The investor comprehend the importance of accounting information to 0 0.677 guide the decision to invest in the PEX : (1)

0 0.704 The availability of accounting information in financial reports to (2) rationalize the investment decision.

0 0.802 The degree of use of accounting information for (3) rationalizing investment decision

0 0.791 The degree of the impact of other information is contained in the (4) financial statements on the investment decision.

0 0.723 Constraint the use of accounting information in the rationalization (5) of investment decision. The level of statistical significance when α = 0.05

From the above it is clear that the correlation coefficients in tables in all areas of the questionnaire of the five statistically significant and highly strong at the level of statistical significance (0.05)

Which means that the scores of respondents in each area of the questionnaire linked statistically indicative of their grades in overall and this grades in overall and this questionnaire refers to the sincerity of the internal consistency check to identify research and strong. 3.5 Statistical treatments used

The researchers did enter questionnaire’s data through SPSS and Statistical tests were used as follows:

 Mean and median and percentages.  Pearson correlation coefficient.

 Intensity reference test (Sign Test)

3.6 Description of the characteristics of the sample

We have been allocated a set of general questions to know the characteristics of the research sample, to provide a basis for the analysis of search results and through the following results:

1-Age

We divide the age into four categories and we observed that the largest categories from (31 to 40 years) which contain 39.40% from the sample as shown below:

Sample distribution by age:

TABLE NO. 8 Age groups Frequency (number) Percentage

20-30 12 % 31.10

31-40 16 % 39.40

41-50 7 % 16.70

More than 50 5 % 12.90

Total 40 %100

2- Qualification:

The table below shows that investors who hold Bachelor’s degree formed the largest proportion of the sample number was 24, where an investor or by 58.90% of the sample,

TABLE NO. 9

Categories Frequency (No.) Percentage of Qualifications

High School or less 4 % 10.10

Diploma 5 % 13.20

Bachelor 24 % 58.90

Postgraduate studies 7 % 17.80

Total 40 %100 3-Scientific specialization: The table below shows that investors specialized in accounting formed the largest proportion of the sample number was 17, where an investor or by 34.40% of the sample, TABLE NO. 10

specialization Frequency (No.) Percentage

Accounting 17 % 43.40 Financial and banking 5 % 12.30

Management 7 % 17.20

Economy 2 % 4.90

Other 9 %22.10

Total 40 %100 4-The nature of investor business The table below shows the number of investor who work on public sector contain 53% form the sample while the investor who work in private sector contains 18.9% ,and the other distributed on others business

TABLE NO. 11

Type of business Frequency Percentage

Employees in the public sector 8 % 18.90

Employees in the private sector 21 % 53.00

Businessman/woman 3 % 8.30

Dealer 4 % 9.10

Other 4 % 10.60

Total 40 %100 5-The number of years you invest The table below shows that the group f investors who work in ( year or less ) are the largest group among others by percent of % 26.90

TABLE NO. 12

Type of business Frequency Percentage

Less than a year 13 % 31.50

From 1 to less than 3 years 11 % 26.90

From 3 to less than 5 years 5 % 11.50

From 5 to less than 7 years 3 % 8.50

7 years and more 8 % 21.05 Total 40 %100

6-Estimated the size of your investment in PEX dinar The table below shows that the group f investors who invest in (Less than 15000) are the largest group among others by percent of % 22.30

TABLE NO. 13

Type of business Frequency Percentage

Less than 15000 21 % 51.80

From 15001 to less than 30000 9 % 22.30

From 30001 to less than 50,000 4 % 9.80

From 50001 to 100000 3 % 7.10

100001 and more 4 % 8.90

Total 40 %100 7-The extent to which your conviction of the importance of the use of accounting information to investment

a general indication of the extent of belief in the importance of the use of accounting information in order to make a decision

TABLE NO. 14

Type of business Frequency Percentage

Very important 25 % 63.60

important 11 % 28.00

Medium importance 2 % 5.30

A few important 1 % 2.30

Not important 1 % 0.80

Total 40 %100 8-The adequacy of accounting information in financial reports to rationalize investment decisions The adequacy of the accounting information contained in financial reports, where the form of investors who have confirmed that the adequacy of accounting information in financial reports to rationalize investment decisions (of 41% or more) 29 investors form 40

TABLE NO. 15 Type of business Frequency Percentage Less than 20% 4 % 9.30

21%-40% 7 % 17.10

41%-60% 13 % 31.80

61%-80% 8 % 20.90

81% and more 8 % 20.90

Total 40 %100 9- The degree of confidence in the auditor's report Table below shows a general indication of the extent of the degree of confidence in the auditor's report, where the form of investors who have confirmed that the degree of confidence in the auditor's report (from 61% or more) 19 investors from 40

TABLE NO. 16 Type of business Frequency Percentage Less than 20% 3 % 8.50

21%-40% 6 % 13.80

41%-60% 12 % 29.20

61%-80% 10 % 25.40

81% and more 9 % 23.10

Total 40 %100

10- The degree of confidence in the rationalization of accounting information in investment decisions The form of investors who have confirmed that the degree of confidence in the accounting information in the rationalization of investment decisions (of 61% or more) 17 investors form 40 which means the investors rely on the accounting information

TABLE NO. 17 Type of business Frequency Percentage Less than 20% 3 % 7.70

21%-40% 9 % 23.10

41%-60% 11 % 28.50

61%-80% 12 % 29.20

81% and more 5 % 11.50

Total 40 %100 11- The degree of confidence in the bulletins Palestine Securities Exchange Investors who have confirmed the confidence in the market Palestine’s publications 22 investors which approved that the investors rely on the Palestine’s publications

TABLE NO. 18 Type of business Frequency Percentage

Less than 20% 2 % 6.20

21%-40% 6 % 13.80

41%-60% 10 % 24.60

61%-80% 13 % 33.10

81% and more 9 % 22.30

Total 40 %100 3.7 Testing the hypotheses

To test the research hypotheses we have use a (Sign Test), which is an alternative of t-test for one sample, since it is used to check the conformity of a median of sample selected from the statistical community, and the test signal does not depend on the value of the difference between grades and the general median, but deals only with signals from where it is positive, negative or zero, and take that is not included in the statistical treatment because it is neutral. -Measurement of questionnaire

The measurement applied in the research questionnaire as follows:

Very Significantly Moderately A weak A very weak much

5 4 3 2 1

1- Test of the first hypothesis:

The investor in PEX not realize the importance of accounting information in the rationalization of investment decision

In order to test the previous hypothesis we used the follow:

H0: M ≤ 3 H1: M > 3

Whereas the H0 means that investors not realize the important of accounting

information (less than or equal 3), while the substitutive hypothesis H1 referred that the investors realized the important of accounting information (more than 3).

TABLE NO. 19

Result of a (Sign Test), for the table of the first area

The The number The The value number of The value The first scope of number Total Sig of general negative of Z positive of zeros median signals signals The degree of importance of accounting information to 116 2 14 132 10.402 0 4 rationalize investment - decisions in the following paragraphs The level of statistical significance when α = 0.05

From the previous table we can see that the value of Z is statistically significant at α = 0.05, which means that the median of the individual answers on the first table higher than the from the median used as a measurement which is (3), and enhance the result the value of general median (4) which means

Significantly according to the measurement used in the questionnaire. Thus we conclude from this the respondents believe the use of accounting information to realize their investments is significant from their point of

view. Accordingly, we reject H0 which stats that that investors not realize the

important of accounting information and accept the hypothesis H1 that the investors realized the important of accounting information.

2- The accounting information contained in financial reports is insufficient to rationalize the investment decision.

In order to test the previous hypothesis we used the follow:

H0: M ≤ 3 H1: M > 3

Whereas the H0 means that the accounting information contained in financial reports is insufficient to guide in the investment decision (less than or equal 3),

while the substitutive hypothesis H1 referred that the accounting information contained in financial reports is sufficient to rationalize the investment decision (more than 3). TABLE NO. 20

Result of a (Sign Test), for the table of the second area

The The number number The The value The value The second scope of of number Total Sig of general of Z negative positive of zeros median signals signals the availability of accounting information in the financial 67 12 53 132 6.075- 0 4 reports to guide the investment decisions The level of statistical significance when α = 0.05

From the previous table we can see that the value of Z is statistically significant at α = 0.05, which means that the median of the individual answers on the second table higher than from the median used as a measurement which is (3), and enhance the result the value of general median (4) which means

Significantly according to the measurement used in the questionnaire. Thus we conclude from this, the respondents believe that the firm provide different accounting information to guide their investments is significant from their

point of view. Accordingly, we reject H0 which stats the accounting information contained in financial reports is insufficient to guide in the

investment decision ,and accept the hypothesis H1 that the accounting information contained in financial reports is sufficient to rationalize the investment decision.

3- There is no other information not included in the financial statements affect the investment decision.

In order to test the previous hypothesis we used the follow:

H0: M ≤ 3 H1: M > 3 Whereas the H0 means that no other information not included in the financial statements affect the investment decision (less than or equal 3), while the

substitutive hypothesis H1 referred that there is other information not included in the financial statements affect the investment decision (more than 3).

TABLE NO. 21

Result of a (Sign Test), for the table of the third area

The The number number The The The value The third scope of of number Total value Sig of general negative positive of zeros of Z median signals signals the degree of influence of other information is contained in the 66 12 54 132 6.001- 0 3.25 financial statements on the investment decisions The level of statistical significance when α = 0.05

From the previous table we can see that the value of Z is statistically significant at α = 0.05, which means that the median of the individual answers on the third table higher than from the median used as a measurement which is (3), and enhance the result the value of general median (4) which means

Significantly according to the measurement used in the questionnaire. Thus we conclude from this, the respondents believe that there is other information not included in the financial statements affect the investment decision is significant

from their point of view. Accordingly, we reject H0 which stats that there is no other information not included in the financial statements affect the investment

decision, and accept the hypothesis H1 referred that there is other information not included in the financial statements affect the investment decision.

5-There is some obstacles limit in using of accounting information in guiding of the decision to invest in PEX. In order to test the previous hypothesis we used the follow:

H0: M ≤ 3 H1: M > 3

Whereas the H0 means that there is no obstacles limit in using of accounting information in guiding of the decision to invest in PEX. (less than or equal 3),

while the substitutive hypothesis H1 referred that there is obstacles limit in using of accounting information in guiding of the decision to invest in PEX (More than 3).

TABLE NO. 22

Result of a (Sign Test), for the table of the forth area

The The number number The The value The value The third scope of of number Total Sig of general of Z negative positive of zeros median signals signals The degree constraints limit the use of accounting information in 68 11 53 132 6.300- 0 4 the rationalization of investment decisions The level of statistical significance when α = 0.05

From the previous table we can see that the value of Z is statistically significant at α = 0.05, which means that the median of the individual answers on the forth table higher than from the median used as a measurement which is (3), and enhance the result the value of general median (4) which means

Significantly according to the measurement used in the questionnaire. Thus we conclude from this, the respondents believe that there is some obstacles limit in using of accounting information in guiding of the decision to invest in PEX is significant from their point of view. Accordingly, we reject H0 which stats that there is no obstacles limit in using of accounting information in guiding of the decision to invest in PEX, and accept the hypothesis H1 referred that there is obstacles limit in using of accounting information in guiding of the decision to invest in PEX.

First: Results

Based on the theoretical and field study carried out by the researchers about (Role of accounting disclosure in guiding the investment decisions in PEX), the researchers concluded the following results:

1. Investors in PEX realizes the importance of using accounting information to guide their investment decisions, and returns that importance of accounting information to the following benefits:

a. Accounting information achieved the effectiveness and less cost and time and quality in performance and reduction of the degree of risk in investment and achieves a higher degree of integration and interdependence between the investment decisions.

b. The providing of accounting information works to increase the capacity and skills of decision makers to achieve the desired goals of investments optimally, and the establishment of integrated information systems and using them to guide the decision-making processes, and provides a set of control procedures to ensure the safety of the decisions taken and revealed errors in the event of their occurrence.

2. The accounting information contained in financial reports is sufficient to rationalize the investment decision and provide the following financial reports:

a. Retained earnings, the percentage of scheduled distributions to shareholders, changes in the capital, earnings per share, the fair value of the items of assets and liabilities, the auditor's assessment of the management efficiency in the preparation of budgets, information for periodic financial reports audited, and confirmation of gains achieved or at least confirmation of the potential loss.

b. The companies do not provide in the financial reports the information on the cumulative impact of the change of accounting policies.

3. The Investors use the accounting information to rationalize the decision to invest significantly in PEX, and they are used lists of the following:

a. Income statement, statement of financial position (B.S), cash flow statement, statement of changes in equity, and auditor's report.

b. The investor does not use any other statements when making investment decision.

4. There is other information contained in the financial statements affecting the decision to invest in PEX,

a. Information from the advice brokers, and information from special bulletins of the market, and information from government literature, and information from magazines and newspapers, and information from visiting companies, and information from companies on Internet, and

information from financial indicators of companies.as well as, reports of management other than the financial statements and reports, and board of directors decisions about plans for future expansion and the opening of new branches, and changes in top management of companies, and the observations of other external auditor.

b. The information that its source of rumors as well as those that come from friends and relatives advice do not effect on investment decision. 5. There are obstacles that restrict the use of information in PEX to guide the investment decision, and these obstacles are:

a. The high cost of access to accounting information, and the lack of accounting information that required accurate and speed, and the absolute of lack of confidence in the methods of preparing accounting information, and cannot use accounting information to predict the future, and the difficulty of comparing investment alternatives because of the different methods of preparation and disclosure.

b. Lack of practical experience of the investors, and the weakness of practical knowledge between matters and accounting information, and estrangement of academic qualification for the practical side of accounting, and non-functional skills to deal with accounting information.

c. Non-publish periodic reports and the lack of instructions disclosure that is more explicit in the Palestine market law with respect to accounting information.

Second: Recommendations

In the light of the findings of the study and to highlight the importance of accounting information and its role in guiding of investment decision on the PEX, the researchers suggest a set of recommendations, which are:

1. The need to enhance awareness of investors and their conviction of the importance of using information and inform them of the benefits of such use. 2. Encourage investors to increase their knowledge of accounting information nature and its impact on the decisions and how they are used for this purpose.

3. Attention to publishing market information and substantive accounting information of official newspapers independently.

4. Increase the confidence and convictions of investors in the accounting information and methods of preparation, and by increasing awareness of the investors.

5. Attention to the function of financial statements' analysis to help investors who lack the accounting expertise to provide advice and guidance to them and through the establishment of financial institutions engaged in this task.

6. Motivate investors to join training courses to gain skills and increase the functional and practical experience and knowledge between matters and accounting information.

7. Select a consolidated date to publish financial statements for making all comparisons between units, including the trade-off by investors.

8. Enhance Palestine market law by instructions disclosure of accounting information that are more clearly through requiring companies with these instructions.

9. Publish periodic reports (quarterly) to provide continuous information to help investors in assessing the performance of companies and then make investment decisions.

10. Provision of accounting information that are required accurate and quick. 11. Cost reduction of access to accounting information.

12. Providing sufficient information on the change of accounting policies and their impact on the company.

13. Use prediction of accounting information in the future.

14. Standardization of preparation methods and disclosure for easily comparison of investment alternatives.

15. Linking academic qualification aspect of accounting practice. Bibliography (2009). Retrieved from http://college.hmco.com/instructors/catalog/walkthroughs/pdf/061862676x_ch01.pdf.

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Fayoumi, M. (1992). Introduction to Electronic Computers. Alexandria: founder of the Youth League.

Frederick, R. (2012). A CORPORATE GOVERNANCE TOOL THAT REALLY WORKS.

GAAP, W. (2012). Willy GAAP.

Guruswami, R. (2010). Investment triangle – three compromising objectives. SiliconIndia, India's , 20- 22. hkmb. (n.d.). Retrieved from http://college.hmco.com/instructors/catalog/walkthroughs/pdf/061862676x_ch01.pdf. jose, o. (2011). http://finance.mapsofworld.com/investment/meaning.html. Retrieved from Maps of World Finance.

Mclaney, E. &. (2010). Investment essentials.

Mohammed. (2000). the risk of depending on accounting information in the evaluation. Alexandrina: the universtiy house for publshing.

Moller.jack. (2009). Retrieved from http://college.hmco.com/instructors/catalog/walkthroughs/pdf/061862676x_ch01.pdf.

Nuttall, J. (2012). What Is Accounting Disclosure? romney. (2008). Retrieved from http://www.accounting-tutorial.com/users-accounting-information. romney. (2008). Retrieved from http://www.accounting-tutorial.com/users-accounting-information.

85 romney. (2008). Retrieved from http://www.accounting-tutorial.com/users-accounting-information.

Saudagaran, S. &. (2003). Economic integration and accounting harmonization options in emerging markets.

Scott, D. L. (2003). http://financial-dictionary.thefreedictionary.com/Disclosure. Retrieved from The free dictionary. www.pex.ps. (n.d.). yousef, A. (2010). Full disclosure and informative disclosure. A-l thwra.

86

Dear Mr. /……………………

The researchers seek through this study to determine the investors' perception to the importance of using accounting information in guiding their investment decisions.

A requirement to obtain bachelor's degree in Accounting in English from the Islamic University- Gaza

We hope that you will kindly read what is stated in this Questionnaire carefully and answer what is stated objectively and mark the answer by put (√) which express your point of view.

Best regard,,,

Researchers:

Ahmed A. AbuMutair Khalid M. Alnairab

Part I: General Information: (1) Age: A From 20 to 30 years B From 31 to 40 years C From 41 to 50 years D 50 years and more

(2) Qualification: A High School or less B Diploma C Bachelor D Postgraduate studies

(3) Scientific specialization: A Accounting B Financial and banking C Management D Economy

E Other (please mention ...... )

(4) The nature of your business:

A Employees in the public sector B Employees in the private sector C Businessman/woman D Dealer E Other (please mention ...... )

(5) The number of years you invest:

A Less than a year B From 1 to less than 3 years C From 3 to less than 5 years D From 5 to less than 7 years E 7 years and more

(6) Estimated the size of your investment in PSX dinar (optional):

A Less than 15000 B From 15001 to less than 30000 C From 30001 to less than 50,000 D From 50001 to 100000 E 100001 and more

(7) The extent to which your conviction of the importance of the use of accounting information to investment

A Very important B important C Medium importance D A few important E Not important (8) The adequacy of accounting information in financial reports to rationalize investment decisions:

A Less than 20% B 21%-40% C 41%-60% D 61%-80% E 81% and more

(9) The degree of confidence in the auditor's report:

A Less than 20% B 21%-40% C 41%-60% D 61%-80% E 81% and more

(10) The degree of confidence in the rationalization of accounting information in investment decisions:

A Less than 20% B 21%-40% C 41%-60% D 61%-80% E 81% and more

(11) The degree of confidence in the bulletins Palestine Securities Exchange:

A Less than 20% B 21%-40% C 41%-60% D 61%-80% E 81% and more

Part II:

First: select the degree of importance of accounting information to rationalize investment decisions in the following paragraphs:

A very Moderatel Very A weak Significantly Item No weak y much

The provision of accounting information and use when (1) making investment decisions is essential. In the light of rapid developments and the availability of multiple alternatives, the provision of accounting (2) information to help in making investment decisions is inevitable. Achieve rely on accounting information when making decisions Investment:

A-greater effectiveness (3) B -A lower cost.

C-less time.

D-Quality performance. Advantages of accounting information provided when making investment (4) decisions to increase the capacity and skills of makers. Providing accounting information when making investment decisions to create integrated information systems (5) utilized to streamline decision-making processes Using accounting information in making investment decisions to reduce (6) the degree of risk. The use of accounting information to rationalize investment decisions affect (7) the nature and quality of the stock investor The use of accounting information to achieve a higher degree of integration (8) and interrelationship between investment decisions The use of accounting information for decision-making provides the capacity (9) and skills sufficient to achieve the objectives of investment optimally. The use of accounting information to rationalize investment decisions provides a set of regulatory measures (10) to ensure the safety of the decisions taken and detect errors if they occur

Second: Select the availability of accounting information in the following financial reports to rationalize investment decisions A very Moderatel Very A weak Significantly Item No weak y much

Companies provide information (1) on retained earnings. Companies provide information on the proportion of planned distributions to (2) shareholders. Companies provide information (3) on changes in the capital. Companies provide information (4) on earnings per share. Companies provide information on the fair value of the items of assets and (5) liabilities. Companies provide information on the most gains confirmation or at least (6) confirmation of the potential loss. Companies provide information about the cumulative impact of (7) the change of accounting policies Companies provide information on reports of periodic (8) financial statements. Companies provide information on the auditor's assessment of (9) the efficiency of management in the preparation of budgets. Third: Select the degree of your use of accounting information to rationalize the investment decisions in the following paragraphs:

A very Moderatel Very A weak Significantly Item No weak y much

Income statement. (1)

Statement of financial position. (2)

Statement of Cash Flows. (3)

Statement of changes in equity. (4)

Auditor report. (5)

Another list (6)

The use of accounting information to compare investment alternatives to (7) choose the best alternative. The use of accounting information to make sure that the rationalization of (8) investment decision taken.

The use of accounting information to correct decisions, promote (9) and ensure its effectiveness.

Fourth: Select the degree of influence of other information is contained in the financial statements on the investment decisions in the following paragraphs:

A very Moderatel Very A weak Significantly Item No weak y much

Information from the tips of (1) intermediaries.

Information from the rumors. (2)

Information from the tips of friends (3) and relatives.

Information from market bulletins (4)

Information from government (5) literature. Information from magazines (6) and newspapers.

Information from visiting companies. (7)

Information from the companies site on the World Wide (8) Web (Internet)

Directory information from the (9) financial indicators of companies

Publishing special reports other than the management financial statements (10) and reports.

Use the style of financial analysis as a (11) tool of decision-making.

Changes in senior management of (12) companies. Notes to other external auditor. (13)

Board decisions on future expansion plans and the opening of new branches. (14)

Fifth: Select the degree constraints limit the use of accounting information in the rationalization of investment decisions:

A very A Significantl Very Moderately Item No weak weak y much

High cost of obtaining this information. (1)

Failure to provide accurate information and the (2) required speed. Absolute lack of confidence in the methods (3) of preparing accounting information. Cannot use accounting information to (4) predict in the future. The difficulty of comparing investment alternatives because of the different (5) methods of preparation and disclosure The lack of the use of accounting information is up to the following reasons:

A - Lack of practical experience.

B - lack of knowledge matters (6) and accounting information. C - after the academic qualification for the accounting side. D - Non-functional skills to deal with accounting information. Weak control on the outcome of investment decisions without relying on accounting (7) information.

Not to publish periodic reports .. (8)

Failure to regulate the accounting and (9) auditing profession properly in Palestine.

Society's perception of improper accounting (10) and accounting information. There is no clear law to the Palestine regarding the (11) accounting information. Best regard,,,

السيد / ...... المحترم

يسعى الباحثان من خلل هذه الدراسة إلى معرفة مدى إدراك المستثمرين في سوق فلسطين للوراق المالية لهمية

استخدام المعلومات المحاسبية لترشيد قراراتهم الستثمارية، كمتطلب لنيل درجة البكالوريوس في المحاسبة

باللغة النجليزية من الجامعة السلمية.

وحيث أننا نعهد منكم الهتمام والستعداد الدائمين لمؤازرة ومساندة الباحثين في أبحاثهم التي تخدم تطور مهنة

المحاسبة في مجتمعنا، فكلنا أمل أن نجد التعاون المعهود بكم من خلل إجابة السئلة الواردة في الستبانة أدناه.

إن تقديمكم للمعلومات الكافية والمطلوبة بدقة وموضوعية سيؤدي بل شك إلى تقييم أفضل لموضوع الدراسة، وبالتالي

مساعدة الباحثين في تحقيق أهداف الدراسه والخروج بتوصيات لوضع الحلول المناسبة.

شاكرا لكم حسن تعاونكم وتجاوبكم واقبلوا فاائق الحترام والتقدير

الباحثان : أحمد علي أبو مطير خالد محمد النيرب الجزء الول: معلومات عامة :

(1) العمر : أ من 20 إلى 30 سنة ب من 31 إلى 40 سنة ج من 41 إلى 50 سنة د من 50 سنة فأكثر

(2) المؤهل العلمي: أ ثانوية عامة فأقل ب دبلوم ج بكالوريوس د دراسات عليا

(3)التخصص العلمي: أ محاسبة ب مالية ومصرفية ج إدارة أعمال د اقتصاد د أخرى ( رجاء ذكرها ...... )

(4) طبيعة عملك: أ موظف في القطاع العام ب موظف في القطاع الخاص ج رجل أعمال د تاجر د أخرى ( رجاء ذكرها ...... )

(5) عدد سنوات تعاملك في الستثمار: أ أقل من سنة ب من 1 إلى أقل من 3 سنوات ج من 3 إلى أقل من 5 سنوات د من 5 إلى أقل من 7 سنوات د 7 سنوات فأكثر

(6) يتراوح حجم استثمارك في سوق فلسطين للوراق المالية بالدينار(اختياري): أ أقل من 15000 ب من 15001 إلى أقل من 30000 ج من 30001 إلى أقل من 50000 د من 50001 إلى 100000 د 100001 فأكثر

(7) مدى قناعتكم بأهمية استخدام المعلومات المحاسبية في ترشيد قرارات الستثمار: أ مهمة جداً ب مهمة ج متوسطة الهمية د قليلة الهمية د عديمة الهمية

(8) مدى كفاية المعلومات المحاسبية في التقارير المالية لترشيد قرارات الستثمار: أ أقل من 20 % ب من %21 - %40 ج من 41%-60% د من %80-%61 د %81 فأكثر

(9) مدى درجة الثقة في تقرير مدقق الحسابات: أ أقل من 20 % ب من %21 - %40 ج من 41%-60% د من %80-%61 د %81 فأكثر

(10) مدى درجة الثقة في المعلومات المحاسبية في ترشيد قرارات الستثمار: أ أقل من 20 % ب من %21 - %40 ج من 41%-60% د من %80-%61 د %81 فأكثر

(11) مدى درجة الثقة في نشرات سوق فاسطين للوراق المالية: أ أقل من 20 % ب من %21 - %40 ج من 41%-60% د من %80-%61 د %81 فأكثر

الجزء الثاني : المجال الول: حدد درجة أهمية المعلومات المحاسبية لترشيد قرارات الستثمار في الفقرات التالية: بدرجة بدرجة ضعيفة رقم بدرجة بدرجة بدرجة الفقرات كبيرة جداً او الفقرة كبيرة متوسطة ضعيفة جداً معدومة يعد توفير المعلومات المحاسبية واستخدامها عند اتخاذ (1) قرارات الستثمار أمرا. ضروريا..

في ضوء التطورات المتسارعة وتوافر البدائل المتعددة، فإن (2) توفيرر معلومات محاسبية تساعد في اتخاذ قرارات الستثمار يعد أمرا. حتميا.. يحقق العتماد على المعلومات المحاسبية عند اتخاذ قرارات الستثمار:

أ- فاعلية أكبر. (3) ب- تكلفة أقل.

ج- وقت أقل.

د- جودة في الداء.

من مزايا توفير المعلومات المحاسبية عند اتخاذ قرارات (4) الستثمار زيادة قدرة ومهارات متخذي القرارات.

يؤدي توفير المعلومات المحاسبية عند اتخاذ قرارات الستثمار إلى إنشاء نظم متكاملة للمعلومات والستفادة منها (5) في ترشيد عمليات اتخاذ القرارات.

يؤدي استخدام المعلومات المحاسبية في اتخاذ قرارات (6) الستثمار إلى تخفيض درجة المخاطرة فيها.

إن استخدام المعلومات المحاسبية في ترشيد قرارات الستثمار (7) يؤثر على طبيعة ونوعية السهم المستثمر فيها.

يؤدي استخدام المعلومات المحاسبية إلى تحقيق درجة أعلى (8) من التكامل والترابط بين قرارات الستثمار . إن استخدام المعلومات المحاسبية عند اتخاذ القرارات يوفر قدرات ومهارات كافية لتحقيق الغايات المنشودة من الستثمار (9) بالشكل المثل.

إن استخدام المعلومات المحاسبية في ترشيد قرارات الستثمار يوفر مجموعة من الجراءات الرقابية لضمان سلمة (10) القرارات المتخذة وكشف الخطاء في حالة حدوثها.

المجال الثاني: حدد درجة توفر المعلومات المحاسبية التالية في التقاارير المالية لترشيد قرارات الستثمار:

بدرجة بدرجة ضعيفة رقم بدرجة بدرجة بدرجة الفقرات كبيرة جداً او الفقرة كبيرة متوسطة ضعيفة جداً معدومة

(1) تووفر الشركات معلومات عن الرباح المحتجزة. تووفر الشركات معلومات عن نسبة التوزيعات المقررة على (2) المساهمين.

تووفر الشركات معلومات عن التغيرات الحادثة في رأس المال. (3)

تووفر الشركات معلومات عن نصيب السهم من الرباح. (4)

تووفر الشركات معلومات عن القيمة العادلة لبنود (5) الصول واللتزامات المالية.

تووفر الشركات معلومات عن المكاسب المحققة (6) الكثر تأكيدا. أو الخسارة المحتملة القل تأكيدا..

تووفر الشركات معلومات حول الثر المتراكم (7) لتغيير السياسات المحاسبية.

تووفر الشركات معلومات عن التقارير المالية الدورية مدققة.. (8) تووفر الشركات معلومات عن قيام المدقق بتقييم مدى كفاءة الدارة في إعداد الموازنات. (9)

المجال الثالث: حدد درجة استخدامك للمعلومات المحاسبية لترشيد قرارات الستثمار في الفقرات التالية:

بدرجة بدرجة ضعيفة رقم بدرجة بدرجة بدرجة الفقرات كبيرة جداً او الفقرة كبيرة متوسطة ضعيفة جداً معدومة (1) قائمة الدخل.

(2) قائمة المركز المالي.

(3) قائمة التدفقات النقدية.

(4) قائمة التغير في حقوق الملكية.

(5) تقارير مدقق الحسابات.

(6) قائمة أخرى

استخدام المعلومات المحاسبية للمقارنة بين بدائل (7) الستثمار لختيار البديل الفضل. استخدام المعلومات المحاسبية للتأكد من رشد (8) قرار الستثمار المتخذ. استخدام المعلومات المحاسبية لتصحيح القرارات (9) وتعزيزها والتأكد من فاعليتها.

المجال الرابع: حدد درجة تأثير المعلومات الخرى غير الواردة في القوائم المالية على قرارات الستثمار في الفقرات التالية: بدرجة بدرجة ضعيفة رقم بدرجة بدرجة بدرجة الفقرات كبيرة جداً او الفقرة كبيرة متوسطة ضعيفة جداً معدومة

(1) معلومات من نصائح الوسطاء.

(2) معلومات من الشاعات.

(3) معلومات من نصائح الصدقاء والقارب.

(4) معلومات من النشرات الخاصة بالسوق.

(5) معلومات من النشرات الحكومية.

معلومات من المجلت والجرائد. (6)

(7) معلومات من زيارة الشركات. معلومات من موقع الشركات على الشبكة العالمية (8) (النترنت) معلومات من دليل المؤشرات المالية للشركات (9)

نشر تقارير خاصة بالدارة بخلف القوائم (10) والتقارير المالية. استخدام اسلوب التحليل المالي كأداة من أدوات (11) اتخاذ القرار.

(12) تغيرات في الدارة العليا للشركات.

(13) ملحظات للمدقق الخارجي الخرى.

قرارات مجلس الدارة بشأن خطط التوسع (14) المستقبلية وفتح فروع جديدة.

المجال الخامس: حدد درجة المعوقاات في الحد من استخدام المعلومات المحاسبية في ترشيد قرارات الستثمار: بدرجة بدرجة ضعيفة رقم بدرجة بدرجة بدرجة الفقرات كبيرة جداً او الفقرة كبيرة متوسطة ضعيفة جداً معدومة

(1) ارتفاع تكلفة الحصول على هذه المعلومات.

(2) عدم توفير المعلومات بالدقة والسرعة المطلوبة. عدم الثقة المطلقة في طرق إعداد المعلومات (3) المحاسبية. عدم إمكانية استخدام المعلومات المحاسبية على (4) التنبؤ في المستقبل.. صعوبة المقارنة بين بدائل الستثمار بسبب (5) اختلف طرق العداد والفصاح (6) إن عدم استخدام المعلومات المحاسبية يرجع للسباب التالية: أ- قلة الخبرة العملية. ب- ضعف المعرفة بالمور والمعلومات المحاسبية. ج- بعد المؤهل الكاديمي عن الجانب المحاسبي.

د- عدم اكتساب مهارات وظيفية للتعامل مع المعلومات المحاسبية. ضعف الرقابة على نتائج قرارات الستثمار دون (7) العتماد على المعلومات المحاسبية.

(8) عدم نشر تقارير دورية..

عدم تنظيم مهنة المحاسبة والمراجعة بشكل سليم (9) في فلسطين.

نظرة المجتمع غير السليمة للمحاسبة والمعلومات (10) المحاسبية.

عدم وجود قانون واضح لسوق فلسطين فيما (11) يتعلق بالمعلومات المحاسبية.

شاكرين لكم حسن تعاونكم،،،،،،،،