AYB311 Lecture Notes - Loss Aversion, Corporate Finance, Mental Accounting
Document Summary
Lecture 9 capital markets research and accounting. Information will be provided regarding the final exam after the mid-semester break. Janet would really appreciate feedback through the lex survey particularly on the issues of assessment and content. Be aware of the age of this research (45 years ago), when the information environment access and speed was very different. There were a lot fewer companies around. Efficient market hypothesis: a market is efficient if security prices fully reflect all available information, relies on the notion that people react rationally to information. Is the basis for all neo-empirical accounting research. This has occurred as a result of the ball & brown paper. There is a lot of research which rejects the efficient market hypothesis: firms disclosure through annual reports. It relies on this being the primary disclosure mechanism we now know there are many issues associated with the annual financial report.
