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Nature of Violation of Saudi Corporations of the Capital Market Law: an Empirical Study of the Capital Market Authority's Actions on Listed Companies

Journal of Administrative and Economics Science

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Title Nature of Violation of Saudi Corporations of the Capital Market Law: an Empirical Study of the Capital Market Authority's Actions on Listed Companies
 
Creator Alnodel, Ali Abd Allah
 
Description Purpose: The Saudi stock market has observed significant changes during the last five years.One of the most important changes was the establishment of the Saudi Capital Market Authority (CMA,thereafter). Since, then, CMA carried out significant improvements in order to strengthen financialtransparency. One tool was establishing closer observation on listed companies' financial disclosure bymeans of executing sanctions on those companies not performing the minimum required disclosure. Thisstudy reports on a research conducted to investigate sanctions on listed companies by CMA in order toenlighten our understanding of the dimensions of transparency of financial disclosure in Saudi stockmarket.Methodology and Findings: All sanctions imposed by CMA since its emerging were collected andanalyzed. The findings suggest that the culture of Saudi business and investments are still playingsignificant role in directing the market rather than the consequences of the efforts of CMA. Most of theCMA sanctions were more related to the fighting of managerial un-compliance with rules and procedures,rather than with the core of the disclosure itself.Importance and Implications: The importance of the finings of this research is that it brings lighton the efforts of the CMA to increase compliance with the Saudi capital market law. It also helpsregulators of CMA to enlighten their efforts to enhance transparency of their stock market and similarstock markets to benefits of the experience of CMA.
 
Publisher Qassim University Academic Publishing and translation
 
Contributor —
 
Date 2008-05-04
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://publications.qu.edu.sa/ojs/index.php/economic/article/view/134
 
Source Journal Of Administrative And Economics Science; Vol 3, No 1
 
Language eng
 
Relation http://publications.qu.edu.sa/ojs/index.php/economic/article/view/134/131