Share valuation methods and data source-based accounting in an emerging stock market:the case of the Kuwaiti stock market

This paper uses a questionnaire survey to investigate share valuation methods and the sources of information employed by Kuwaiti investors; it compares the appraisal techniques and the sources of information employed by Kuwaiti investors to those used in other developed and emerging stock markets. The findings suggest that Kuwaiti investors behave like their counterparts in other stock markets; fundamental analysis is the main appraisal technique used by investors; technical analysis and risk analysis are ranked second and third, respectively. However, the usage of technical and risk analysis is much higher in Kuwait. Further, quarterly and annual corporate reports as well as newspapers, the Kuwait Stock Exchange (KSE) website, and charts are commonly studied by investors when valuing Kuwaiti shares. By contrast, communication with company management is not common since executives are usually unwilling to discuss their firm's performance with investors.