The Questionnaire Sample

To recap, the questionnaire survey is used to determine the views and perceptions of users and preparers about the usefulness of information disclosed in the annual reports of Libyan firms, and the adequacy of that information. Below are the targeted sample and population

for the questionnaire. Table 5-5 below illustrates the response rate of the questionnaire survey.

Table 5-5 The questionnaire’s response rate

Distributed Returned Response rate Users

Individual investors 30 13 43.3%

Institutional investors 35 18 51.4%

Financial analysts 30 15 50%

Senior bankers 30 14 46.7%

Legal accountants & auditors 32 21 65.6%

Academics (researchers) 29 18 62%

Tax officers 30 18 60%

Total 216 117 62.5%

Preparers

Accountants & financial directors 95 48 50.5%

Total 311 165 53%

5.5.1.3.1The User-Groups

1- Individual investors

Since the start of the privatisation programme in Libya, individual investors have become an important factor in the economic development and the foundation of the LSM. This group was targeted through visiting the LSM to get in touch with individual investors. Also, the Libyan Businessmen Board (LBB) in Tripoli was visited to collect information regarding individual investors who are investing in the Libyan market. The researcher was able to approach a total of 30 individual investors through continued visiting of the LSM and LBB, distributing 30 questionnaires during the period of the data collection. Out of the 30 distributed questionnaires a total of 13 completed questionnaires were answered and returned achieving a response rate 43.3% as shown in Table 5-5.

2- Institutional investors

This type of investor is relatively rare in emerging economies such as Libya. As a result of searching for and identifying these investors in Libya, the financial analysts in a list of institutions were included and contacted to fill out the questionnaire survey. This list of institutional investors was obtained from the Central Bank of Libya (CBL) in April 2014 prior to the time of data collection when the researcher was issued a letter from the Ministry of Higher Education requesting the recipient to co-operate with the researcher during his data collection. This letter had a great

influence on both governmental and private institutions encouraging them to provide the researcher with the required information and data about institutional investors. Each institution was visited personally to hand the questionnaire to the financial analyst(s) in that institution. The number of questionnaires handed out varied from one to three depending on the number of financial analysts in each institution, resulting in a total of 35 (See Appendix 2-1). All of these institutions responded and filled in the questionnaire survey through their financial analysts, with different response rates. Some institutions returned all three questionnaires and others returned only one questionnaire. As shown in Table 5-5, with a response rate of 51.4%, of the 35 questionnaires distributed, a total of 18 completed questionnaires were returned. 3- Financial analysts

Financial analysts are responsible for analysing and studying CARs for the purpose of evaluating and making decisions. In this study, financial analysts working in private accounting and auditing firms were chosen to fill out the questionnaire survey. A list of 123 accounting and auditing firms was obtained from the CBL. Only 53 firms were working at the time of the data collection. Additionally, financial analysts in the CBL and the LSM also were targeted. In addition to the CBL and LSM a total of 28 questionnaires were distributed personally to this user group. Out of the 30 distributed questionnaires a total of 15 completed questionnaires were answered and returned with a response rate of 50% as shown in Table 5-5.

4- Senior bankers and bank loan officers

The questionnaire survey was sent to the credit departments of the Libyan public and commercial banks. A list of 11 banks operating in Libya was obtained from the CBL (see Appendix 2-2). Most of these banks were located in Tripoli, the capital city of Libya. Senior bankers and bank loan officers at these banks were personally handed a total of 30 questionnaires in April 2014 and the researcher started collecting the completed questionnaires in the beginning of May 2014. Each bank was handed two or more questionnaires for its senior bankers or bank loan officers. All banks responded and filled in the questionnaire survey through their senior bankers with different response rates where some banks returned three questionnaires and others returned only one questionnaire. As shown in Table 5-5, out of the 30 distributed

questionnaires a total of 14 completed questionnaires were returned with a response rate of 46.7%.

5- Accountancy professionals

This group of users was represented by legal accountants and auditors. Accountants registered at the LAAA and accountancy bureaus operating in Libya were targeted as representatives of this group. Although a huge list of accountants was obtained from the LAAA in the beginning of April 2014, only 157 accountants provided their contact details to the LAAA. Of the 157 accountants, only 82 individuals had handed their contact details correctly. The majority of them are located in the west of Libya and particularly in Tripoli. After contacting the 82 individuals by phone and email, a total of 32 questionnaires were handed to individual accountants registered in the LAAA. Out of the 32 distributed questionnaires, a total of 21 completed questionnaires were answered and returned achieving a response rate 65.6% as shown in Table 5-5.

6- Academics and researchers

This group covers academics and researchers in the accounting field in Libyan universities. There are 15 universities in Libya, of which only 12 universities have business schools and accountancy departments in particular (see Appendix 2-3). Most of these universities are located in the west part of the country with only two universities in the east and one in the south of the country. The letter issued by the Ministry of Higher Education in Libya was used to get access to accountancy staff and researchers in the business schools of these universities. In April 2014 a total of 29 questionnaires were handed to accounting academics and researchers in accountancy departments at these universities. Of the 29 distributed questionnaires a total of 18 completed questionnaires were answered and returned with a response rate of 62%.

7- Tax officers

The Libyan Tax Authority was the main user of CARs in Libya for a long period of time, and is still in the position where all companies operating in the Libyan market are required to submit their annual reports to them for tax purposes. Personal visits during April and May 2014 were conducted to 15 tax offices in different parts of the

country where the researcher handed 30 questionnaires to tax officers. Again, the letter from the Ministry of Higher Education in Libya was helpful to get access to tax officers in these offices. As shown in Table 5-5, with a response rate of 60%, out of the 30 distributed questionnaires a total of 18 completed questionnaires were returned.

5.5.1.3.2The Preparers Group

Although there are many studies investigating the attitudes and views of different user- groups regarding the usefulness of CARs and their information needs, relatively few studies were conducted to examine the perceptions of the preparers of CARs regarding this matter, particularly in developing countries. Therefore, one of the contributions of this study lies in this point, by filling the communication gap between the two parties. Financial directors and accountants in both listed and non-listed firms in Libya were targeted to elicit their perceptions on the usefulness of CARs and how they prioritise and rank the information needs of different user groups. The population of the Libyan companies is discussed later in section 5.5.2.5. A total of 95 questionnaires were handed personally to accountants and financial directors in the firms where their annual reports were collected for the content analysis part of this study. As shown in Table 5-5, with a response rate of 50.5%, of the 95 distributed questionnaires, a total of 48 completed questionnaires were collected.