A dissertation submitted in partial fulfilment of the MSc Finance and Accounting degree

Abstract

The main objective of this dissertation study is to examine the impact of accounting information on share price in Saudi Stock Exchange empirically. To obtain this objective, a model of specific accounting variables include (earning per share, book value per share, capital employed per share, and net operating cash flow per share) and share price has been adapted. In addition to this main objective, a comprehensive literature review has conducted to cover the significant effect of accounting information as well as addressing Saudi Gross Domestic Product and market size as controlled variables in this research. This study has used a quantitative research approach and data has been gathered from the bank companies listed in Saudi Stock Exchange. The research has used correlation and OLS regression models during the period from 2010 to 2020. The findings have been implied that three accounting variables out of the four that have studied in this work have a significant influence on share price in Saudi Stock Exchange. Moreover, The large market size in Saudi Arabia has positively reflected the stock market in Saudi. These outcomes should bridge the gap in literature and should be an interest of investors, decision makers, and researches who are currently using or willing to use account information in analysing / improving the Saudi Stock Exchange performance.