Cover Image

Accrual, Cash Flow Data And Share Price: An Examination During Different Economic Conditions In Saudi Arabia

Thesis (PhD)-- Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 2014

Saved in:
Bibliographic Details
Main Author: Nuri S. A. Salem
Format: Thesis
Language:English
Published: Universiti Sains Islam Malaysia 2015
Subjects:
Accrual basis accounting > Saudi Arabia
Cash flow > Saudi Arabia
Stocks > Prices > Saudi Arabia
Online Access:http://ddms.usim.edu.my/handle/123456789/8772
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.usim-8772
record_format dspace
spelling my.usim-87722018-04-03T02:41:47Z Accrual, Cash Flow Data And Share Price: An Examination During Different Economic Conditions In Saudi Arabia Nuri S. A. Salem Accrual basis accounting--Saudi Arabia Cash flow--Saudi Arabia Stocks--Prices--Saudi Arabia Thesis (PhD)-- Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 2014 There are two widely accepted approaches used to predict the stock price of a business’s equity. The accounting approach assumes that the predictive ability of a company's earnings out-performs the cash flows to predict share prices. A financial model assumes that cash flows are a better tool for forecasting future stock prices. The motivation of this paper is to discover whether the accrual accounting components or the cash flow components provide a better explanation for estimating the share price of non-financial companies listed on the Saudi Stock Exchange (SSE), an emerging capital market of Saudi Arabia during various economic conditions; pre-global financial crisis, during the global financial crisis and after the global financial crisis. Five hypotheses were developed and regression analysis was used to test the hypothesized relationships. Annual data used in this study were collected from the financial statements of 90 non-financial companies listed on the Stock Exchange of Saudi Arabia from 2007 to 2011. The regression results found that the accrual components have a better predictive power than cash flow components to forecast Saudi stock prices before, during and after the global financial crisis. In addition, accrual components are incrementally informative beyond cash flow components in predicting share prices during the crisis period and non-crisis. Furthermore, the results also led to a conclusion that there is sufficient evidence to prove that the accrual components are more persistent than the cash flow components in explaining the variations of the share price before, during and after the global financial crisis. The results of this thesis can be used as evidence to support the theory in financial analysis such as the efficient markets theory, the free cash flow theory, the traditional financial theory and the theory underlying the relationship between earnings and stock price. 2015-07-13T04:14:17Z 2015-07-13T04:14:17Z 2014 Thesis http://ddms.usim.edu.my/handle/123456789/8772 en Universiti Sains Islam Malaysia
institution Universiti Sains Islam Malaysia
building USIM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universit Sains Islam i Malaysia
content_source USIM Institutional Repository
url_provider http://ddms.usim.edu.my/
language English
topic Accrual basis accounting--Saudi Arabia
Cash flow--Saudi Arabia
Stocks--Prices--Saudi Arabia
spellingShingle Accrual basis accounting--Saudi Arabia
Cash flow--Saudi Arabia
Stocks--Prices--Saudi Arabia
Nuri S. A. Salem
Accrual, Cash Flow Data And Share Price: An Examination During Different Economic Conditions In Saudi Arabia
description Thesis (PhD)-- Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 2014
format Thesis
author Nuri S. A. Salem
author_facet Nuri S. A. Salem
author_sort Nuri S. A. Salem
title Accrual, Cash Flow Data And Share Price: An Examination During Different Economic Conditions In Saudi Arabia
title_short Accrual, Cash Flow Data And Share Price: An Examination During Different Economic Conditions In Saudi Arabia
title_full Accrual, Cash Flow Data And Share Price: An Examination During Different Economic Conditions In Saudi Arabia
title_fullStr Accrual, Cash Flow Data And Share Price: An Examination During Different Economic Conditions In Saudi Arabia
title_full_unstemmed Accrual, Cash Flow Data And Share Price: An Examination During Different Economic Conditions In Saudi Arabia
title_sort accrual, cash flow data and share price: an examination during different economic conditions in saudi arabia
publisher Universiti Sains Islam Malaysia
publishDate 2015
url http://ddms.usim.edu.my/handle/123456789/8772
_version_ 1645152469848686592
score 13.211869

Similar Items