The aim of this research is to develop a conceptual framework for health insurance companies to detect fraud committed by physicians by using data mining. The study revealed that most of the health insurance companies in Saudi Arabia are auditing claims manually, and they are in the process of automating such procedures. This supports the idea of using data mining in detecting fraud. The paper concluded a recommendation to insurance companies to apply such a tool and to prepare a “black list” of physicians who are convicted in committing fraud.
This research was a result of the conclusions and recommendations of the previous two papers regarding the Saudi Stock market. The main goal of this research is to suggest a model to predict the next day’s stock price.
The whole Cement sector is chosen to test the hypothesis on its companies after considering the re-organization which happened to the Saudi Capital Market in 2005 and its possible effect on stock prices. Trading data on the minute level is collected for the period from July 2005 till August 2008. However, financial data is collected from July 2006 till 2008. The reason is that historical data were needed to calculate some indicators. Data from 2005 till July 2006 were mainly used to prepare for indicators calculations. Big traders’ activities are identified by calculating z-score considering the volume and value of the transactions. If Z-score’s value is greater than 2, then the volume of the transaction which happened during this minute is regarded as a transaction for a big trader. The value and volume of the big transactions during the day are calculated to be used in variables calculations.
More than 40 variables are calculated and used including technical and financial indicators, value at risk, and some variable related to daily stock transactions (stock turnover per day, and stock turnover for big transactions, average transaction volume, average trading price per stock per day…etc.) Such variables are calculated for the whole period for all companies on a daily basis.
The correlation of each variable to the stocks’ prices is tested. The results showed that there is a positive significant correlation between the average stock price for the big transactions and the stock’s price in the preceding day.
A model is built by using the data collected from six companies, and the seventh company’s data is used to test the model. To build the model, the main variables which had significant correlation with the stock price (based on statistical analysis) are determined. Seven variable are chosen, none of them is related to financial indicators, rather mainly to trading data (such as volume of big transaction in the previous day and value of trading in the previous day) and some technical indicators too. Which indicated that the Saudi Stock market is mainly driven by big traders. Then a step-wise regression is prepared, and a model is developed. The suggested model is then tested on the data of the seventh company in the cement sector. This research showed that the Saudi Capital Market Authority has to keep a closer eye on the activities of big traders.
The research tested a group of hypothesis mainly to find if there is a correlation between the technical and financial indicators and changes in the stock prices. Also if there is a correlation between the technical and financial indicators.
Testing the research hypothesis revealed that there is a correlation between the stock price and its book value for 77% of the companies and also a correlation between the changes in PE ratio and changes in stock prices. It was clear that the Saudi Market does not react to financial data quickly as it is found that the changes in stock prices is not correlated with the financial indicators during the period of announcing the quarterly results, however such relationship is correlated on the long run.
It was concluded that there is a correlation between changes in stock prices and some technical indicators especially during the 2 days preceding a significant change in prices, while there is a correlation between other technical indicator and the stock’s closing price on the day following the significant change in the stock’s price. There is a correlation between some financial indicators and some technical indicators. The study recommends the search for variables other than those relying on technical and financial indicators to stand on the reasons behind such fluctuation in the Saudi Stock market.
The aim of this research to measure the effect of financial and non-financial disclosure on the companies’ stock prices. Analysis of companies’ disclosures over a 2 years period is done and grouped into 20 categories. A sample of 3 companies per sector is taken, and large companies that had an effect on the market index were always considered being included in the sample of each sector. The total number of companies chosen in the sample were 36 representing around 41% of the total market. A list of all announcements for all companies in the sample is tracked over a period of two years recording the date in which the announcement is announced and tracking the closing price for the stock in the 10 days preceding and following the announcement date.
For companies that announced profits or high losses (exceeding 10% of the previous period’s net results), the results revealed that there is a significant difference between the average stock price and the price of the stock on the date of the announcement, which indicates that there is an effect of the announcement on the price. However, there is no significant difference between the average stock price around the period of the announcement and the date of the announcement if the losses are not so big (less than 10% of previous period’s net results).
It is also revealed that there are four types of announcements that had an effect on the stock prices as the average stock price differed significantly than its price on the date of the announcement. Those announcements are announcing dividends or stock dividends; distributing the dividends; Call for a general assembly, or announcing that a quorum is not reached at a general assembly. It is concluded that there are other factors that affected the stock prices other than the financial and non-financial disclosures as most of the announcement showed that it does not affect the stock prices.
Recommendation was to continue investigating the relationship between the financial indicators and the stock prices.
The main idea behind using XBRL and the recent experience of different countries in implementing it is introduced. Surveying of all the websites of all the listed companies on both the Stock Market in Egypt and Saudi Arabia, revealed that not a single company published its financial statement using XBRL. The results were alarming and drew the attention that companies and professionals in both countries are not aware about such development which is happening abroad.
This research combined both WebTrust measures and the degree of financial disclosures which companies provide in Egypt and compare it with what is applied in both USA and UK as an example of the developed nations. WebTrust standards that have been developed by the American AICPA and the Canadian CICA are illustrated in details. A survey for a sample of websites for leading companies in Egypt, USA and UK is done, and statistical analysis for the method and amount of the financial disclosure is prepared. The survey included visiting 100 websites of US companies, 100 websites for UK companies and 47 Websites for Egyptian companies. The method by which the companies of each country publish and discloses its financial statements and financial disclosure are studied, and then research hypothesis are tested. The testing of hypothesis revealed that there is a significant difference between the methods of presenting financial statements between the three countries. The results revealed that there is a significant difference between the number and amount of financial disclosure of Egyptian companies that disclose such information on their websites, and the British and American companies.
The goal of the research was two folds, the first is to introduce the SysTrust standards to the Arabic Accounting literature as it was almost totally new, and the second is to shed light on the factors that determines implementing a specific software and finally compare the measures used by companies with the SysTrust measures. The results revealed interesting facts, such as 40% of the companies used ready-made packages of international companies, while 60% used customized software. It showed also that 58% did not perform a real test before implementing the system. Results also revealed that companies put high trust in ready-made packages developed by international software firms. Large companies tend to test their newly acquired accounting systems before implementing them.
This research aims to study if there is a correlation between the financial indicators and changes in stock prices for different business sectors, then to study if the set of indicators which had a correlation with the changes in stock prices for each sector is significantly different from those of the other sectors.
Quarterly financial statements over a period of 5 year for 21 companies are used to represent the sample of this study. The companies are distributed among three sectors; Industrial; Construction; and Commercial. Sixty four ratios representing the variables of such study are calculated using the sample companies financial statements. A correlation between the variables and stock price on the financial statement date is studied. Then a step-regression model is developed for each sector to show the most effective indicators on the stock price. The indicators of the three sectors are compared together, and the results showed that there are some indicators that are significantly correlated with the stock price and are common across the three sectors. Other indicators are common only within two sectors. There are no financial indicators which effect the stock price, which are common between the three sectors under study. This indicates that the business nature affects the financial indicators that affect the stock prices. The research also showed that non-financial data are important and has an effect on the stock prices.
This research studies the affect of privatization and its methods on the newly privatized companies’ performance. The results revealed that there is a significant difference between the capital and asset structure for the privatized and state owned companies. Results also showed that the method of privatization has a significant effect on the Capital and assets structure of the company, and it differed significantly after privatization. On the other hand, the profitability of privatized companies increased after privatization and the method of privatization has a significant effect on the profitability. It was shown that selling the company to an anchor investor showed better profitability than privatizing the company through a public offering.
This research aims to shed the light on costing system of live-stock breeding companies. The main accounting and costing problems facing the Ostrich breeding companies are identified. Then a framework for a cost management system to fulfill the requirements of Ostrich breeding companies is developed.