electronic information and tadawul

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Assessment III
Proposal
Research on:
(The effect of Electronic Publication of information on the efficiency
of Saudi stock market)
Practical study on Tadawul
Instructor: SANOBAR ANJUM
Name: Noora Almusailem
I.D #: 200700066
Sec: 203
2012
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Table of content
Contents
page
Introduction………………..……………………………………………….………..3
Motivation of the study …………………………………………………….……….4
Problem Description………………………………..……….…………………….....4
Formulation of hypothesis ………………………....…….…………………….…...4
Research Methodology ……………………………………….………..……....…...5
Clarification of concepts and terms…………………………………………………6
Framework of the research………………..……..…………….………………..…..7
Sources ……....…….……………………………………..……………….…......…8
Qualifications and experience …………………………..………...……………….10
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1. Introduction
Information is play a very important role in this era, which described as the era
of information where countries, organizations and investors are racing to obtain the
necessary information in a timely manner so as to make the right decision, and where
that information using modern technology has increased and has become to get a
tremendous amount of information in the record time is simple and available around
the clock for all economic institutions, which encouraged the dissemination of data
and application analysis and make it available to users allows decision-making in a
more reliable and accurate.
Saudi stock market has initiated application of electronic trading for buying and
selling online since 2003 providing an opportunity dissemination of data for
companies and traded stocks, and make them available to all users via its website
www.tadawul.com.sa
,
this has doubled the volume of trading in shares and
increased base participants clearly and concretely, this research came to try to know
the effect of the electronic dissemination of information on the efficiency of financial
markets as one of the most important advantages of efficient markets is to provide
information transparently to all users, allowing equal opportunity to compete and
equitable access to information for all users.
Methodology of this research will follow a critical analysis approach as to
examine the effect of electronic information on the market efficiency, data will
analyzed and interpreted as to get the findings and conclusion at end.
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2. Motivation of research :
The importance of research lies in the importance of the topic being discussed is
electronic dissemination(publication) of information and its impact on the efficiency
of the capital market, as well as the increasing importance of research to find out the
huge amounts spent on electronic publishing and providing information for users to
capital markets and in order to reach financial market available when information
equally and fairly to all users.
3. Problem Statement
The importance of capital markets in the economy have become increasingly
where they contribute to the stability of the economy in general and increase the
strength financing for companies and doubled investment opportunities and economy
moving, hence the urgent need for dissemination of data and information about the
financial markets, where the research problem to study the impact of electronic
publishing information on the efficiency of capital markets and increase flexibility
and simplify access reliable information to all investors fairly to reach the market
ideal which allows information to all without prejudice or monopoly and block parties
for the account of others. For that , the problem of this research can be : is there an
ability of electronic publishing to affect the efficiency of the capital market ?
4. Formulation of Hypothesis
The research suppose the followings :
Hypothesis : There is a positive effect of electronic publishing on the efficiency of
the Saudi Stock Market.
Null Hypothesis :
There is a negative effect of electronic publishing on the
efficiency of the Saudi Stock Market.
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5. Research Methodology
5.1 Research design
Methodology in this research is quantitative approach of methodology , as the
research will implement a comparative analysis between the performance of the stock
market before publishing electronic information , and the performance of stocks after
the publishing.
5.2 Data collection
The Secondary data: will be collected from books, articles, specialized magazines,
official sites of Saudi stock market, and from and any valuables sites.
The Primary data will be collected from the Saudi stock market as the capital market
in Saudi and includes all the shares and stocks of listed companies.
5.3 Data analysis
The data which will be collect should analyzed in a comparative way to examine the
effect of electronic information publishing on the performance of the stock market.
5.4 Study Population
Population of this research are all Saudi companies that listed in Saudi Stock Market
(Tadawul).
5.5 Sampling Procedure
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Sampling of this research will randomly applied , as a few of companies will
be chosen to examine the direct change on their performance before and after the
publishing of electronic information.
6. Clarification of concepts and terms
Electronic publishing: Is to use the potential of the computer instead of the
traditional means of printing in the production and distribution of information.
Capital market efficiency : means the availability of information to investors than
the speed of its presence and accessibility and low cost.
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7. Frame work of the research
The research will follow the below design :
7.1
Research Design
Introduction
Motivation
Research Problems
Research Hypotheses
Definition of Terms
7.2
7.3
Literature review
Details about the Saudi stock market and E-information
Electronic Publication.
Capital markets efficiency.
Effect of electronic publication on markets efficiency.
7.4
Analysis and Interpretation
Analysis and Interpretation of Data
7.5
Findings and Conclusion
Findings
Conclusion
Recommendations
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8. Sources ( references ):
The sources of this research are:
Look Smart,(2003),IDC
www.findartcles.com ).
expects
growth
for
e-investment. (Available
at:
Leigh, Andrew, Justen Wolfers and Eric Zitzewitz (2003), "What Do Financial
Markets Think of War in Iraq", National Bureau of Economics Research, Cambridge,
MA., (Available at: www.nber.org/papersw9587 ).
Sarker A. and Tozze M (1998) , “ Electronic Trading on Future Exchanges” Current
Issues in economics and Finance Jun 1998 Vol 4 No 1 pp1-6.
Cutler, David, James M. Poterba and Lawrence H. Summers (1989), "What Moves
Stock Prices?", Journal of Portfolio Management. 15(3): 4-12.(Available at:
www.nber.org/papers/w2538.pdf).
Ghadir Astnpola, (1997 ) "the effect of the change in capital expenditures on prices
and the movement of stock trading - a field study on the public shareholding
companies listed on the Amman Financial Market, studies, Management Science,
Volume 14 Issue 1.
Qawasmi, Zakariah, (1990) "the efficiency of the Amman Financial Market," Master,
the University of Jordan.
Almtaori, Abdul Karim,( 1996) "semi-strong efficiency examination in the Amman
Financial Market," Master, the University of Jordan.
Abdel Nasser Zyoud, Mohammed Abu Zaid,( 2007),: "the impact of the Internet in
the financial markets: An Empirical Study on the Amman Stock Exchange" Damascus
University Journal of Economics, 2007, the first issue of 2007. Available
www.damascusuniversity.edu.sy .
Osama Salam, (2003) a study entitled "The impact of the introduction of electronic
trading in the performance of the Amman Stock Exchange Securities" King Khalid
University Press: Available at: www.kku.edu.sa/Conferences/SSEFP /
Miftah, Saleh, Maafi, and Farida, (2010), a study entitled "Requirements Securities
Market Efficiency: A Study of the reality of Arab stock markets and ways to boost the
efficiency" http://rcweb.luedld.net/rc7/13-07A0702905.pdf
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Amer Hidmi, (2007), a study entitled "publishing and disseminating information and
electronic trading and its impact on the transparency and efficiency of financial
markets," the first annual meeting of the Palestinian capital market.
Badri, Sabah, Khoury and Rettab, (1997)"study the movements of stock prices in the
Amman Financial Market using standard models" studies, administrative sciences,
Volume (24), Nr. 1997
Ben a Itha Bashir, and Dibla Fateh, (2005), corporate governance as a tool to ensure
authenticity of information and financial accounting systems and their impact on the
performance level of the market, www.kku.edu.sa
Obeid Al-Mutairi,( 2007) study "the impact of electronic commerce on the accounting
and auditing profession" http://www.acc4arab.com/acc/showthread.php?t=2182
Mohammed Suhaibani,( 2008), and a working paper on the "manipulation of the
financial markets," economic dimension ", the University of Imam Muhammad bin
Saud
Khaldoon Tabaza, and Osama al-Sharif,( 2012), "the Arab world and the digital
environment ... the challenges of the electronic media and the Internet Arabic" AlArabi magazine, Kuwait, http://www.alarabimag.com/common/book/afaq009_1.htm
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9.Qualifications and experience
The learning that I performed at PMU in finance was gave me opportunities to
study, analyze, and search about different issues in Saudi stock market , in
shape of investments, analyzing the stocks changes , and regression analyses
of the stocks movements. From that , I feel that I can implement such research
as my interest and qualifications enabling me to conduct such research.