Compliance with international financial reporting standards (IFRS) and the value relevance of accounting information in emerging stock markets : evidence from Kuwait

Since the 1960s, the value relevance of accounting information has been an important topic in accounting research. The value relevance research provides evidence as to whether accounting numbers relate to corporate value in a predicted manner (Beaver, 2002). Such research is not only important for investors but also provides useful insights into accounting reporting effectiveness for standard setters and other users. Both the quality of accounting standards used and the effectiveness associated with implementing these standards are fundamental prerequisites for high value relevance (Hellstrom, 2006). However, while the literature comprehensively documents the value relevance of accounting information in developed markets, little attention has been given to emerging markets where the quality of accounting standards and their enforcement are questionable. Moreover, there is currently no known research that explores the association between level of compliance with International Financial Reporting Standards (IFRS) and the value relevance of accounting information. Motivated by the lack of research on the value relevance of accounting information in emerging markets and the unique institutional setting in Kuwait, this study has three objectives. First, it investigates the extent of compliance with IFRS with respect to firms listed on the Kuwait Stock Exchange (KSE). Second, it examines the value relevance of accounting information produced by KSE-listed firms over the 1995 to 2006 period. The third objective links the first two and explores the association between the level of compliance with IFRS and the value relevance of accounting information to market participants. Since it is among the first countries to adopt IFRS, Kuwait provides an ideal setting in which to explore these objectives. In addition, the Kuwaiti accounting environment provides an interesting regulatory context in which each KSE-listed firm is required to appoint at least two external auditors from separate auditing firms. Based on the research objectives, five research questions (RQs) are addressed. RQ1 and RQ2 aim to determine the extent to which KSE-listed firms comply with IFRS and factors contributing to variations in compliance levels. These factors include firm attributes (firm age, leverage, size, profitability, liquidity), the number of brand name (Big-4) auditing firms auditing a firm’s financial statements, and industry categorization. RQ3 and RQ4 address the value relevance of IFRS-based financial statements to investors. RQ5 addresses whether the level of compliance with IFRS contributes to the value relevance of accounting information provided to investors. Based on the potential improvement in value relevance from adopting and complying with IFRS, it is predicted that the higher the level of compliance with IFRS, the greater the value relevance of book values and earnings. The research design of the study consists of two parts. First, in accordance with prior disclosure research, the level of compliance with mandatory IFRS is examined using a disclosure index. Second, the value relevance of financial statement information, specifically, earnings and book value, is examined empirically using two valuation models: price and returns models. The combined empirical evidence that results from the application of both models provides comprehensive insights into value relevance of accounting information in an emerging market setting. Consistent with expectations, the results show the average level of compliance with IFRS mandatory disclosures for all KSE-listed firms in 2006 was 72.6 percent; thus, indicating KSE-listed firms generally did not fully comply with all requirements. Significant variations in the extent of compliance are observed among firms and across accounting standards. As predicted, older, highly leveraged, larger, and profitable KSE-listed firms are more likely to comply with IFRS required disclosures. Interestingly, significant differences in the level of compliance are observed across the three possible auditor combinations of two Big-4, two non-Big 4, and mixed audit firm types. The results for the price and returns models provide evidence that earnings and book values are significant factors in the valuation of KSE-listed firms during the 1995 to 2006 period. However, the results show that the value relevance of earnings and book values decreased significantly during that period, suggesting that investors rely less on financial statements, possibly due to the increase in the available non-financial statement sources. Notwithstanding this decline, a significant association is observed between the level of compliance with IFRS and the value relevance of earnings and book value to KSE investors. The findings make several important contributions. First, they raise concerns about the effectiveness of the regulatory body that oversees compliance with IFRS in Kuwait. Second, they challenge the effectiveness of the two-auditor requirement in promoting compliance with regulations as well as the associated cost-benefit of this requirement for firms. Third, they provide the first known empirical evidence linking the level of IFRS compliance with the value relevance of financial statement information. Finally, the findings are relevant for standard setters and for their current review of KSE regulations. In particular, they highlight the importance of establishing and maintaining adequate monitoring and enforcement mechanisms to ensure compliance with accounting standards. In addition, the finding that stricter compliance with IFRS improves the value relevance of accounting information highlights the importance of full compliance with IFRS and not just mere adoption.

The relationship between academic library usage and educational performance in Kuwait

University libraries play an important role in contributing to student and faculty members’ academic achievement. This study examines perceptions of university library usage to consider factors that influence achievement of students, academics and administrators. A thorough review of relevant literature examined approaches to determining user satisfaction of students and faculty, and factors that influence library usage. It highlighted the value of usage on educational performance. It enabled development of a theoretical framework leading to the Factors of Academic Library Usage (FALU) model, which was developed to investigate the effect of usage factors. FALU was tested in Kuwait university libraries. The study used validated questionnaires from 792 students, 143 academics and 121 administrators to measure five library factors. Interviews were conducted across the three University libraries. The findings are useful in measuring the correlation between the current academic library usage and educational performance.

The relationship between academic library usage and perceived personal performance in Kuwait

Academic libraries around the world often have to justify high maintenance costs. High maintenance costs of university libraries are often justified by the belief that regular use of an academic library improves the grades of students. However, this is a difficult statement to support, therefore demonstrating the link between library use and student outcomes is critical to ensuring that library investment continues. Questionnaires and interviews were conducted and the findings were analysed to derive users’ perceptions. The findings revealed interesting results regarding how users make use of the library and how users feel the library improves their personal performance. Overall, the perception of all three groups of the academic libraries within Kuwait is positive, however many users are dissatisfied with some academic library services. Students answered positively regarding their grades and use of the academic library. Academics and administrators were generally positive and offered an experienced insight into the quality of the library. This study offers the first perception based results in Kuwait. The inclusion of administrators’ perceptions is also novel in terms of the Gulf States. A refined model was designed based on the overall findings within the study. This model can be applied to any academic library, regardless of size or collection type. Based on findings, the researcher recommends taking the following points into consideration in order to improve library services and facilities for all users. Improvements could be made in the structure of library training courses and academic libraries should be providing flexible spaces for individuals and group study as well as social activities.

Principals, Teachers, and Student's Perception of the Information and Communication Technology in Kuwait Secondary Schools (Rhetoric and reality)

ICT integration has been advocated to provide opportunities to improve students’ achievement and engagement through transforming the educational setting. A valuable tool that contributes in enhancing and developing students’ cognitive skills for lifelong learning, ICT integration has introduced a new educational philosophy, shifting the role of students into a more central position in the pedagogical processes. Kuwait, as with many other countries, has recently planned ICT integration to develop its citizen’s capacities. This study sought to capture the principals’, teachers’, and students’ perceptions of ICT integration in pedagogical activities, as well as how ICT is being used for learning and teaching activities in three ICT leading Kuwaiti secondary schools. Interviews with principals, teachers, and students were conducted, along with an open-ended questionnaire for the teachers, researcher observations, and document analysis. The findings revealed that ICT integration in Kuwait needed to be reinforced to accomplish the ICT integration objectives. A call for further support for teachers, and a reconsideration of the ICT integration strategies were also recommended.

Use of concept maps in reforming teaching Family and Consumer Sciences in Kuwait

This paper addresses the professional development of Kuwaiti teachers in the use of concept maps to teach Family and Consumer Science. A key aim of the study was to evaluate the degree to which the use of concept maps would influence the way Kuwaiti teachers approach and teach Family and Consumer Studies (FCS) subjects and the degree to which concept maps empower students to critically identify and express their knowledge of the subject being taught. A case study methodology was adopted to follow the implementation of lessons using concept maps by four teachers of middle years. An analysis of the data revealed the positive impact that student-centred teaching tools can have on the reformation of traditional teaching environments. For all teachers, the primary strengths of using concept maps were the ability to generate student interest, to motivate student participation and to enhance student understanding of content. Although a case study design may limit the generalisation and comparative value of the study, the findings of this study remain important to the planning of future professional development programs and the use of concept maps within Kuwait’s FCS curriculum area.

Embedding graphic organisers in the teaching and learning of family and consumer sciences (home economics) in Kuwait

Educational reforms currently being enacted in Kuwaiti Family and Consumer Sciences (FCS) in response to contemporary demands for increased student-centred teaching and learning are challenging for FCS teachers due to their limited experience with student-centred learning tools such as Graphic Organisers (GOs). To adopt these reforms, Kuwaiti teachers require a better understanding of and competency in promoting cognitive learning processes that will maximise student-centred learning approaches. This study followed the experiences of four Grade 6 FCS Kuwaiti teachers as they undertook a Professional Development (PD) program specifically designed to advance their understanding of the use of GOs and then as they implemented what they had learned in their Grade 6 FCS classroom. The PD program developed for this study was informed by Nasseh.s competency PD model as well as Piaget and Ausubel.s cognitive theories. This model enabled an assessment and evaluation of the development of the teachers. competencies as an outcome of the PD program in terms of the adoption of GOs, in particular, and their capacity to use GOs to engage students in personalised, in-depth, learning through critical thinking and understanding. The research revealed that the PD program was influential in reforming the teachers. learning, understanding of and competency in, cognitive and visual theories of learning, so that they facilitated student-centred teaching and learning processes that enabled students to adopt and adapt GOs in constructivist learning. The implementation of five GOs - Flow Chart, Concept Maps, K-W-L Chart, Fishbone Diagram and Venn Diagram - as learning tools in classrooms was investigated to find if changes in pedagogical approach for supporting conceptual learning through cognitive information processing would reduce the cognitive work load of students and produce better learning approaches. The study as evidenced by the participant teachers. responses and classroom observations, showed a marked increase in student interest, participation, critical thought, problem solving skills, as a result of using GOs, compared to using traditional teaching and learning methods. A theoretical model was developed from the study based on the premise that teachers. knowledge of the subject, pedagogy and student learning precede the implementation of student-centred learning reform, that it plays an important role in the implementation of student-centred learning and that it brings about a change in teaching practice. The model affirmed that observed change in teaching-practice included aspects of teachers. beliefs, as well as confidence and effect on workplace and on student learning, including engagement, understanding, critical thinking and problem solving. The model assumed that change in teaching practice is inseparable from teachers. lifelong PD needs related to knowledge, understanding, skills and competency. These findings produced a set of preliminary guidelines for establishing student-centred constructivist strategies in Kuwaiti education while retaining Kuwait.s cultural uniqueness.

Discussion on the wind climate of Kuwait and Dubai

Historical wind data for Kuwait and Dubai have been analysed to determine the design wind speed for the region. Kuwait and Dubai are located near the northern and southern end of the Persian Gulf respectively. The winds in this region just north of the Tropic of Capricorn are dominated by the Shamal, literally 'north' in Arabic. The winds have traditional Bedouin names such as Al-Haffar (the driller), and Barih Thorayya (morning star). The Al-Dabaran is generally the strongest Shamal in late summer, and can last up to 40 days bringing sand and duststorms.

The History, Present Condition, and Future of the Molluscan Fisheries of North and Central American and Europe: Volume 1, Atlantic and Gulf Coasts

This three-volume monograph represents the first major attempt in over a century to provide, on regional bases, broad surveys of the history, present condition, and future of the important shellfisheries of North and Central America and Europe. It was about 100 years ago that Ernest Ingersoll wrote extensively about several molluscan fisheries of North America (1881, 1887) and about 100 years ago that Bashford Dean wrote comprehensively about methods of oyster culture in Europe (1893). Since those were published, several reports, books, and pamphlets have been written about the biology and management of individual species or groups ofclosely related mollusk species (Galtsoff, 1964; Korringa, 1976 a, b, c; Lutz, 1980; Manzi and Castagna, 1989; Shumway, 1991). However, nothing has been written during the past century that is comparable to the approach used by Ingersoll in describing the molluscan fisheries as they existed in his day in North America or, for that matter, in Europe. (PDF file contains 224 pages.)

Stormsmart coasts in action: Two case studies of local level climate change adaptation

Coastal communities throughout the United States have dealt with the devastating effects of storms for centuries, however today’s threats are greater due to three factors. First, the population along the coastline has grown, and is projected to increase.i Additionally, past land use management decisions in the coastal zone have rarely led to the greatest protection from threats. Finally, climate change is predicted to affect coastal areas by accelerating current sea level rise rates and possibly increasing storm intensity.ii These factors compounded together mean that coastal communities are facing a very dangerous situation that threatens economies and human life. (PDF contains 4 pages)

Geographical differences in the feeding patterns of red rockfish (Sebastes capensis) along South American coasts

Feeding habits and feeding strategy of red rockfish (Sebastes capensis) were studied from fish captured along most of the range of this species in coastal waters of South America. Stomach contents of 613 individuals, collected during 2003, were analyzed. Fish were obtained from six locations along the Chilean (23°S to 46°S) and Argentinian (43°S) coasts. The main prey items were Mysidacea (75.06% IRI), Osteichthyes (6.29% IRI),and Rhynchocinetes typus (6.03% IRI). Predator sex and size did not significantly affect the diet, but significant differences were found between locations. Four geographical areas, discriminated by prey occurrence and frequencies, were determined: three on the Pacific coast and one on the Atlantic coast. These areas correspond roughly with biogeographic zones described for the Chilean and southern Argentinian coasts. The feeding strategy index (FSI) indicated a specialized feeding strategy for S. capensis for most of its range. However, the FSI does not include the behaviour of a predator, and the FSI must be interpreted carefully for fishes like S. capensis that are passive ambush feeders. The abundance and availability of different prey may explain both the geographic differences in dietary composition and the specialized feeding strategy of S. capensis.

A comparison of length-related and age-related growth parameters of newaiby Otolithes ruber in Kuwait waters

The growth parameters of Otolithes ruber (Sciaenidae) were determined from both length-frequency and length-at-age data collected from Kuwait waters from 1984 to 1986. The similarity of the growth parameters is reflected in the small range of the parameters o' (=log sub(10)K+2logL) which indicates the compatibility of the two methods for this relatively short-lived species.

Tilapia culture in Kuwait: constraints and solutions

Tilapia farming in Kuwait is in its early stages. Slow growth, high production cost and poor demand are the major constraints to the expansion of tilapia culture in Kuwait. This article presents some suggestions for overcoming these problems to improve the economic feasibility of tilapia culture in Kuwait.

Growth dynamics of the spinner shark (Carcharhinus brevipinna) off the United States southeast and Gulf of Mexico coasts: a comparison of methods

The age and growth dynamics of the spinner shark (Carcharhinus brevipinna) in the northwest Atlantic Ocean off the southeast United States and in the Gulf of Mexico were examined and four growth models were used to examine variation in the ability to fit size-at-age data. The von Bertalanffy growth model, an alternative equation of the von Bertalanffy growth model with a size-at-birth intercept, the Gompertz growth model, and a logistic model were fitted to sex-specific observed size-at-age data. Considering the statistical criteria (e.g., lowest mean square error [MSE], high coefficient-of-determination, and greatest level of significance) we desired for this study, the logistic model provided the best overall fit to the size-at-age data, whereas the von Bertalanffy growth model gave the worst. For “biological validity,” the von Bertalanffy model for female sharks provided estimates similar to those reported in other studies. However, the von Bertalanffy model was deemed inappropriate for describing the growth of male spinner sharks because estimates of theoretical maximum size (L∞) indicated a size much larger than that observed in the field. However, the growth coefficient (k= 0.14/yr) from the Gompertz model provided an estimate most similar to that reported for other large coastal species. The analysis of growth for spinner shark in the present study demonstrates the importance of fitting alternative models when standard models fit the data poorly or when growth estimates do not appear to be realistic.

Feeding habits of the dwarf weakfish (Cynoscion nannus) off the coasts of Jalisco and Colima, Mexico

Sciaenids from the Pacific coast of Mexico are used as a second-class fish species for human consumption (Aguilar-Palomino et al., 1996). The dwarf weakfish (Cynoscion nannus) (Castro-Aguirre and Arvizu-Martínez, 1976) is often caught as bycatch in the shrimp fishery but, because of its small size (<27 cm TL, total length), it is not considered a valuable resource. This species can be found in great numbers in waters between 100 and 812 m (Allen and Robertson, 1994; Fischer et al., 1995) associated with the soft-bottom regions off the coast of Jalisco and Colima (González-Sansón et al., 1997).