7101AFE: Lecture 5 Topic T i 6 expectant Markets Research Some slides adapted from those of Craig Deegan; Others developed by Griffith Staff Qantas Flying in The Red! http://video.theaustralian.com.au/227150272 9/Qantas-reports-first-annual-loss-in-twodecades On 23 Aug 2012, Qantas report annual loss of $245mil, its first annual loss in nearly two decades, and cancelled orders for 35 of Boeing's more fuel- economical 787-9 aircraft in a bid to save $US8.5 billion ($8.1bn). ⢠Despite this show loss, at 2:40 pm on 23 Aug 2012, Qantas shares were trading at $1.21, 3.42% up from the previous dayâs closing price of $1.17! ⢠2 Learning objectives of this topic ⢠In this topic you leave alone be introduced to â" Capital markets research (CMR) â" the economical Market venture (EMH) â" Why earnings should be related to security system prices â" major research results of CMR in financial accounting â" Research findings that contend the EMH 3 1 Capital markets researchâ"introduction ⢠Examines the relation between financial averment information and the capital markets ⢠B any and Brown (1968), and Beaver (1968) pioneered CMR in accounting. ⢠Is accounting information (e.g., reported earnings, segment data) useful to investors? ⢠take to be relevant? ⢠Are new accounting standards âbetterâ than older standards? ⢠Are investors indifferent between recognition and disclosure? 4 The Efficient Market Hypothesis (EMH) ⢠A central assumption in CMR is the EMH.
⢠EMH: Fama (1970, 1991) defines an efficient market as one in which âsecurity prices fully fall all available informationâ. ⢠gage prices follow a ârandom walkâ in an efficient market. ⢠Implications: â" The market has no memory. â" Fundamental analysis is useless. â" No investor systematically beats the market. 5 Three forms of market efficiency ⢠Weak form: prices reflect information about past prices and trading volumes ⢠Semi-strong form: all publicly available information is rapidly and fully impounded...
⢠EMH: Fama (1970, 1991) defines an efficient market as one in which âsecurity prices fully fall all available informationâ. ⢠gage prices follow a ârandom walkâ in an efficient market. ⢠Implications: â" The market has no memory. â" Fundamental analysis is useless. â" No investor systematically beats the market. 5 Three forms of market efficiency ⢠Weak form: prices reflect information about past prices and trading volumes ⢠Semi-strong form: all publicly available information is rapidly and fully impounded...
Is this the right essay for you?
or
If you want to get a full essay, order it on our website: Orderessay
Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.
Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.
No comments:
Post a Comment