Role of Financial Information in Emerging Capital Markets

Abstract

This paper adopts a conventional premise that financial information such as contained in audited financial statements and interim financial statements play a significant role in capital markets. However, for utility in capital markets, the paper further suggests that forward looking in addition to historical information seem to be more appropriate, not only in developed countries but also in emerging capital markets of less developed countries like Tanzania. A deliberate emphasis needs to be placed on provision of variance data to enable securities brokers, investment advisors and investors make a "discriminate" analysis between good and bad performance companies. In a world of advance information technology (IT), use of electronic data processing naturally provides a competitive niche in the instantaneous business decision making process in stock markets.


African Journal of Finance and Management Vol.7(2) 1999: 154-168