Design of the empirical study



The conceptual framework, as developed in the preceding chapter, builds on the implications of finance and accounting theory and related empirical research. In order to undermine the comprehensiveness and to evaluate the practicability of the framework — in particular for European equity markets — I carry out an exclusive empirical study. The following section introduces the concept of value relevance, the cornerstone of the study. It also forms a link to market efficiency and explains the assumptions of the study. Next, I formulate hypotheses for research questions 4 to 10 and clarify the underlying methodology of the study. The presentation of the initial dataset and the discussion of descriptive statistics of the ultimate sample make up the final section in this chapter.


Market Participant Equity Market Market Efficiency Earning Announcement Accounting Information 
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