Other Corporate Information Sources Usage: Evidence from Jordanian Individual Investors

Abstract

This study aims to provide insight into of the extent of usage of other corporate financial information sources by Jordanian individual investors in taking their investment decisions in Amman Stock Exchange (ASE) in comparison with annual corporate reports. The study also aims to identify the main reasons for using sources of information other than corporate annual reports. The result of study revealed that corporate annual report was the most used sources of information. This followed by published daily share price, newspapers and magazines, corporate web sites, advice of friend, tips and rumours, stockbrokers’ advice and discussion with company staff respectively. These results indicated that Jordanian individual investors put more emphasis on the usage of the written sources than verbal sources. The results also indicated that Jordanian individual investors start to give more attention to the usage of electronic sources as the corporate web sites ranked forth. In respect to reasons that encouraged investors to use sources of information other than corporate annual reports, the results indicated that the first three reasons include; easier to get information, containing new information and giving up-to-date information. These reasons form the features of the written sources which were indicated as the most used sources of information.