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Stock Market Efficiency and the Information Content of Financial Reports

  • Hans G. Eijgenhuijsen
  • Jan Klaassen
Part of the Nijenrode Studies in Business book series (NSIB, volume 1)

Abstract

Firms’ financial statements or accounting reports are supposed to be of importance to the investment decisions of (potential) shareholders. This does not exhaust the significance of the accounting report figures because there are other groups for whom these figures may contain important information. Besides this, the figures may help shareholders to form an opinion concerning management policies, with a view to exercising their voting rights. At present we do not know enough about the question of what the importance of accounting reports is for shareholders’ investment decisions. Yet a knowledge of this is important, because it would shed light on the problem of the extent to which firms can influence stockprices by means of their accounting reports. In the effort to improve accounting reports it would be possible — if information on this problem were available—to pay specific attention to the effects of certain proposals for the improvement of stock valuation.

Keywords

Stock Market Stock Price Mutual Fund Stock Prex Valuation Method 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© H.E Stenfert Kroese B.V. 1978

Authors and Affiliations

  • Hans G. Eijgenhuijsen
  • Jan Klaassen

There are no affiliations available

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