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7101AFE: Lecture 5 Topic T i 6 corking 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 Boeings more fuel- effectual 787-9 aircraft in a bid to save $US8.5 billion ($8.1bn). Despite this cross-file loss, at 2:40 pm on 23 Aug 2012, Qantas shares were trading at $1.21, 3.42% up from the previous days closing price of $1.17! 2 Learning objectives of this topic In this topic you get out be introduced to â€" Capital markets research (CMR) â€" the cost-efficient Market system (EMH) â€" Why earnings should be related to warranter prices â€" study research results of CMR in financial accounting â€" Research findings that altercate the EMH 3 1 Capital markets researchâ€"introduction Examines the relation between financial rehearsal information and the capital markets B entirely 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 better than sexagenarian 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 security prices fully hypothesize all available information. credentials prices follow a random walk in an efficient market. Implications: â€" The market has no memory. â€" Fundamental analysis is useless. â€" No investor consistently 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... If you wish to get a full essay, order it on our website: Ordercustompaper.com

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