Measuring Transparency and Disclosure in the Financial Reports of the Saudi Capital Market Registered Corporations: an Empirical Study.

(Ahmed Ragab Abdul Malik Abdul Rahman)

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Abstract

The research purpose was to identify the level of transparency in the Saudi joint stock corporation reports. In order to do that, the research reviewed a plethora of accounting literature covering different areas to identify the importance of transparency, the mechanisms to achieve it, the Saudi Stock Market effort to grantee certain level of transparency, and the need to set Saudi accounting standards to control it. The research concluded that the level of transparency in the Saudi corporation is higher than corporations listed in other emerging markets. It also showed that the level of transparency is almost similar among different sectors in the Saudi stock market. Such findings indicate the commitment of Saudi corporations to follow the Saudi Stock Market regulations. In conclusion, the research emphasized adjusting Saudi accounting standard to adopting mandatory not optional disclosure, embracing a social role for the corporations, following the Saudi stock market regulation, in addition to including related transparency and disclosure in the corporations published reports in order to reach a higher level of transparency and disclosure. Key Words: Financial reports published, Saudi Arabia accounting standards, Transparency.
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