The appraisal of ordinary shares by Saudi investors

TY - JOUR

T1 - The appraisal of ordinary shares by Saudi investors

AU - Al-Abdulqader, K. A.

AU - Hannah, G.

AU - Power, D. M.

N1 - dc.publisher: Elsevier

PY - 2007

Y1 - 2007

N2 - This paper reports on a questionnaire survey about share valuation practices among investors and their intermediaries in Saudi Arabia. The findings suggest that fundamental analysis is used most by investor respondents where a P/E multiple is applied to an earnings forecast to generate a prediction of future price. However, technical analysis is also used to a much greater extent than in developed markets. Finally, the results indicate that quarterly and annual reports as well as newspapers are widely consulted by investors when forming their expectations about share valuations.

AB - This paper reports on a questionnaire survey about share valuation practices among investors and their intermediaries in Saudi Arabia. The findings suggest that fundamental analysis is used most by investor respondents where a P/E multiple is applied to an earnings forecast to generate a prediction of future price. However, technical analysis is also used to a much greater extent than in developed markets. Finally, the results indicate that quarterly and annual reports as well as newspapers are widely consulted by investors when forming their expectations about share valuations.

KW - Financial shares

KW - Saudi Arabia

U2 - 10.1016/j.ribaf.2005.08.004

DO - 10.1016/j.ribaf.2005.08.004

M3 - Article

SN - 0275-5319

VL - 21

SP - 69

EP - 86

JO - Research in International Business and Finance

JF - Research in International Business and Finance

IS - 1

ER -