The Ability of Accounting Information to Explain the Behaviour of Stock Prices of Companies Listed on the Libyan Stock Market

(Field Study From the perspective of academics and certified accountants)

Abstract

This study aimed to examine the content of accounting information and its ability to explain changes in the stock prices of
companies listed on the Libyan stock market. To achieve this objective, the views of academics and certified accountants
were investigated on the most important accounting information influencing the stock prices of these companies. A
questionnaire was distributed to test the content of accounting information. The findings show the influence of accounting
information and its ability to explain changes in the stock prices of companies. It also recommended that the committee of
the Libyan stock market adopt a policy aiming to promot the understanding of accounting indicators by publishing them in
booklets and on its website, so that they can be used for analysis and to enhance the benefits of accounting information
provided in financial statements and reports. It is also recommended to require listed companies to publish their financial
statements periodically, including all essential and critical accounting information that affects stock prices, and mandate
the preparation of additional accounting reports.