ACW367 SEMINAR IN ACCOUNTING THEORY & ISSUES

TOPIC: Reactions of Capital Markets to Financial Reporting

Prepared for: Prof Fauziah Md. Taib

Prepared By: GROUP 5 (Group for WEEK 9)
1 AIMAN SYAHMI MOHAMAD NAZRI 2 LIM CUI WEN 3 LOKE PUI TENG 4 NOOR FAZLINA BINTI MA'RIBI 5 P'NG LING LING 1027 73 1013 38 1013 43 1013 54 1013 63 7 8 9 1 0 1 1 SAMAH ABDULLA OMER ABDULLA SITI NORIDAH BT ZAKARIA TAN CHI CHIEH TANG JIA MIN TING MUN CHUN 1029 62 1050 48 1013 77 1013 83 1013 90

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6 PHANG KEE SHU

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Table of Contents 1.0 Introduction........................................................................................3 2.0 Efficient Market Hypothesis..............................................................4 3.0 Efficient Market Research.................................................................6
3.1 Implication of Efficient Market Research on users of financial information..........7 3.2 Implication of Efficient Market Research on content of the corporate report.........8 3.3 Implication of external factors .................................................................................8

4.0 Decision Usefulness...........................................................................13

4.1 Problems that would emerge in decision usefulness approch................................14

5.0 Different Condition and User Groups for Financial Reporting besides EMH .....................................................................16 6.0 Conclusion.........................................................................................20 7.0 Bibliography .....................................................................................21

1.0 Introduction In 2001, the Worldcom and Enron scandals have shaken the business world with their massive frauds awakening the regulator on the deficiency of the current financial
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reports at that point in time. Since then the FASB, IASB and other institutions alike have make major revamping on the financial reporting standards to improve the quality of information in a companys financial reports. However, there is still lack of consensus on whether the information in the financial reports is sufficient. The user on one hand is demanding for more while the management on the other is reluctant to provide more. First of all, annual reports are lacking of non-financial reporting information. Non-financial reporting (NFR) has gain increase important currently. EY refer nonfinancial reporting as sustainability reporting, enables businesses to be transparent in communicating these non-financial aspects of their management and

performance (Ernst and Young, 2009). Currently NFR remains a voluntary practice and France is the sole country so far to enact specific legislation to oblige publicly listed companies to produce NFR. Forward looking information on the company seems to be absent in the annual reports as well. The current financial information is mainly based on historical costs and reporting of past events which carry little indication on future performances of the company. Others are of the opinion that the information is not provided at a timely manner. The current once a year annual reports and quarterly interim reports in some opinion are lagging. Even though the current standards have specify the core fundamental areas of a company to be reported and existence of different sets of reporting requirements for specialize industry, such as banking, insurance, airline and shipping just to name a few. It is important to note that value of each piece of information significant differs from industry to industry and the current use of one size fit all approach is questionable. 2.0 Efficient Market Hypothesis The efficient market hypothesis (EMH) theory states that it is impossible to
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"beat the market" because the stock market efficiency causes the existing share prices to reflect all relevant information. This is why the stocks that been traded will always at their fair value. The only way to receive higher returns is by purchasing riskier stock for investment. Investor will not be able to purpose or sell undervalued stocks at inflated prices. The EMH is thought to be the "cornerstone of modern financial theory." EMH remains controversial and is disputed by many individuals. One reason is because many feel it is a waste of time to look for stocks that are undervalued (Investopedia). The EMH does give an impact on the accounting standards. The users which include the investors and creditors depend on the accurateness and truthfulness of the annual reports to give an insight on the performance of a company. Some of the information give also been use to make technical analysis that help to verified the company performance The Efficient Market Hypothesis is developed in the 1960s from the Ph.D. thesis of Eugene Fama. Fama persuasively made the argument that in an active market that includes many great and intelligent investors, securities will be appropriately priced and reflect all available information because it is so important. If a market is efficient, no information or analysis can be expected to beat the performance of an appropriate benchmark (Eugene F. Fama, Random Walks in Stock Market Prices Financial Analysts Journal, September/October 1965). The Efficient Market Hypothesis popular known as Random Walk Theory shows that at any given time, security prices will fully reflect all available information in the market. The impacts of the efficient market hypothesis are truly reflective. Most individuals that buy and sell securities (stocks in particular), do so under the assumption that the securities they are buying are worth more than the price that they are paying, while securities that they are selling are worth less than the selling price. But if markets
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are efficient and current prices already fully reflect all information, then buying and selling securities in the market will be effectively easier to beat the market because it will be a game of chance rather than skill. There are three main form of EMH to make a distinction between capital markets with high efficiency and those with a bad working information system as stated by Fama (1970) The first form is weak form of EMH. The information enclosed in the past is fully reflected in the current market price. It is called weak form because the market prices are the most widely and easily accessible pieces of information. It implies that no one should be able to outperform the market using something that "everybody else knows". Insider information may lead toward gaining abnormal profit because the information does not reflect in the stock market until everyone knows. This means, technical analysis is not useful. Next is Semi-Strong form of EMH state that security prices reflect all publicly available information. There are no undervalued or overvalued securities and therefore, unable of producing greater returns. When new information is released, it is fully incorporated into the price. The availability of intraday data enabled tests which offer evidence of public information impacting stock prices within minutes (Patell and Wolfson, 1984, Gosnell, Keown and Pinkerton, 1996). That means, fundamental analysis is not useful and a company's financial statements are no help in forecasting future price movements and securing high investment returns. The Strong form suggests that securities prices reflect all available public and private information and is will quickly incorporated by market prices. Therefore in strong form EMH, it would be impossible to gain abnormal profits. Even the company's management or the insider would not have the advantage on the information they have although the information have been made ten minutes ago. Hence the strong form does
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not hold in a world with an uneven playing field. 3.0 Efficient Market Research Over decades, the Efficient Market researches on financial reporting were focused mainly on the users of financial information and also the contents of corporate reports. The Efficient Market Theory implies that the stock prices in the efficient market will reflect all the historical and present information that are available to the users, which include the information that are available from the corporate financial reporting. This phenomenon takes the semi-strong form, and even the strong-form of market efficiency. One of the factors that have important influence to the financial reporting is the corporate reporting behavior. With the separation of ownerships, managements of companies are accounted the stewardship of the assets by the shareholders. This agency relationship will normally affect the corporate reporting behavior, especially when the performance appraisals of the management are tied to the companies stock price. If the management involves in the willful misconducts, the financial reporting of the companies will turn out to be neither true nor fair. On top of that, management of companies will tend to engage in financial reporting that make the companies to look more normal to the current economy condition and market sentiment. The stock prices that are adjusted in accordance to the wrong financial information will not be reflecting the intrinsic value of the firms. The agency costs will be passed to the shareholders or investors once the market realizes the arbitrages that are created by the corporate reporting behaviors in these scenarios. On the other hand, rationality of the users or investors should be forming part of the Efficient Market researches on financial reporting. Users or investors that are not rational or naive should not constitute to the price development of companies stock in the stock market. According to CAPM, the investors are assumed to be rational.
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Besides, market efficiency also implies that firms should not overly concern about the nave investors. Financial reporting that are overly concerned about these kinds of investors are potentially lacking in full-disclosure or providing misleading financial information to other rational investors. The costs of this will be passed to the rational investors if the irrational or nave investors constitute the majority of the shareholders. Moreover, the market might be overreacting towards the behaviors of the irrational or nave investors, likewise during the market crash in year 2987. Behaviorists would say that the one-third drop in market prices, which occurred early in October 1987, can only be explained by relying on psychological considerations since the basic elements of the valuation equation did not change rapidly over that period. (Burton G.M., 2003) 3.1 Implication of Efficient Market Research on users of financial information One of the implications of efficient market research on financial reporting by giving extra attention on users of financial information is the creation of awareness among the accountants of the significant importance of the financial information in a report to be reflecting the market condition accurately and timely. Accountants would be aware that the ultimate objective of the users on the financial statements and the reports is that all relevant and useful information is being disclosed to aid in users decision making. This is because users, especially the investors who contribute the equity capital to a firm are the owners and that they would demand more transparent information in order to ensure that the information is actually reflecting the underlying economic conditions of the market. Furthermore, by disclosing the relevant information, a firm could attract more investors to enhance its capital structure and to secure a competitive position in the market against other competitors. 3.2 Implication of Efficient Market Research on content of the corporate report Another implication of efficient market research on financial reporting when the focus of attention is on the content of the annual report is based on the assumption that different users react to a particular piece of information similarly, which is always not
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the case. Thus, the only variable is the amount of information that each and every user has. Such difference is among the key risks in the capital markets, which further complicates the prediction of stock prices. So as to provide information to accommodate each and every user (to make the market as efficient as possible), all information has to be disclosed. This is especially true for market-oriented information that often provides a better insight to what the market perceives to be valuable. This, unfortunately, would then make financial reports overloaded with information. On one hand, the users may find it difficult to interpret and segregate this information. On the other, the firms may have tough time identifying and preparing the reports, given that relevance and reliability are two key characteristics that financial reports should fulfill. In case of tradeoffs between relevance and reliability, firms may resort to engaging third parties to furnish such information (adverse selection) or to neglect the quality of the financial reports (moral hazard). 3.3 Implication from external factors. We are going to explain how the political economy was affects market efficiency. Political economy is refers as government executes certain enforcement power into economy market in order to promote welfare of society and attempt to maintain stability of economy as well. There are several political issues affecting efficient of market. According to Singh and Ellis, Competition policy and regulation act as important role in restricting business and preventing inadequate business practices, and providing a platform for every firm, including small and middle firms, which are all important to attract investment and developing the private sector. (Singh,R. & Ellis,K., 2010) For example, fiscal policy and monetary policy can be adjusted unstable economy. Through these policies, government able to control inflation or recessions by spending, resisting tax cuts and managing the money supply. However, these policies are the major threat to reflect in healthy competition market. It can become an obstacle to one side of firms by protecting other side of firms that are weak and infant. Exercising the political
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economy will reflect both sides of pros and cons to efficient market. In next paragraph, we going to explain what are the implication of efficient market hypothesis influences investors. Efficient market hypothesis is a flavor of economic, which is an unrealistic idealization of market behavior, according to Lysenkoism. It may leads toward inadequacy by any unpredicted events. Besides that, Fama said that most of the investors are not acting or behaving rationally. (Fama, 1970) These investors easily be influenced by the result of financial report. For example, investors will keep on assessing the performance of fund managers. The fund managers are not getting attention while underperforming in the market. Thus, most of companies are not willing to disclose about fund information especially additional management costs guarantee that dropping fund result. Furthermore, JK Galbraith said that economics is the only profession in which it is possible to rise to excellence without ever once being right. (Rational Fools vs Efficient Crooks: Efficient Market Hypothesis, 2011) Next, another issue is that EMH undertaking that all investors in the markets are always alert with future earnings prospects. Unfortunately, not all the investors are using same information. Some users concerning about future earnings, others care about policy of company, statistic, financial ratio and so on. Although there are many different types of investors in the market, but they are attempting to make more money from these different kind of information. After discussing the effect of EMH to investors, next we are going to conduct about the implication of EMH without implementing regulation and policy. First, the EMH may lead toward market-unfriendly as it can speed up economic bubble in market. (Rational Fools vs Efficient Crooks: Efficient Markets Hypothesis) Several policies such as tax policy, restriction policy been used to against emerging bubbles and it is able to stable the economic while facing inflation or recession. For example, one of the reasons of bubbles burst in year 2007 is regulators too depend on the EMH
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perspective, which they rely on using futures price for the commodities in preparing their inflation projection. In fact, they are overestimate prospective inflationary pressures that lead to failure of economic. Hence, in order to protect innocent people from instability economic, the policies such as monetary, fiscal and regulatory policies must be proper established. Moreover, most of the companies would try to disclose the information that gives the best interest on their behalf. They may attempt to play creative with the accounting rules to provide a nice report for their stakeholders. For example, Enron had use of special entity purpose and mark-to-market technique to show more earning and less expenses. This consequence is mislead the investors believe the wrong statement of information and may suffering losses after scandal was discovered. Therefore, regulators are important to reinforce the policies in order to protect the investors from unethical companies. Economic We going to investigate how was economy affects market efficiency. The economy consists of two parts, which are microeconomic and macroeconomic. According to Fama (1970), a market is efficient if the prices is rationally reflect all relevant available information and past information is not use to predict future prices. Microeconomic conducts a private market transaction, which involves buyer and seller exchange goods or services for money. In order to achieve market efficiency, several conditions of microeconomic should be achieved such as equilibrium market transactions, efficient resources allocation, household demand and so forth. First, equilibrium market transactions will occur while the price and quantity are achieved at the point on both buyers and sellers willing to purchase and produce. From the graph below, the producers must supply at the number of quantity and price, which must consist with the price that demand of buyers (Pm, Qm). If the producer sets on the price higher than Pm, the demand of consumers also less than Qm. There will
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exist consumer surplus and the producer will force to minimize the price to Pm in order to achieve market equilibrium.

Second, a market is efficient when the producer able to utilize input and resources to produce the maximum amount of goods and services. The market efficient only can be achieved when utilizing resources on the optimal price. The buyers and sellers can decide how to allocate the resources in order to use the resources with the most valuable and effectively. Third, market efficiency also involves household demands. Every household will try to maximize their utility by demand any goods and services. To satisfy household demands, producers also try to produce the most cost efficient and unique products. Thus, to create market efficiency, it is necessary to provide competitive condition in order to satisfy consumers need and earning the greatest profit from consumers. Next, we proceed to discuss how macroeconomics affects market efficiency. Macroeconomics defines as overall of economy including total income and output, or labor market and global market as well. (Macroeconomic - Introduction, 2012) The macroeconomics variables include consumer price index, money market and foreign exchange rate. (Bykalvarc, 2010) First macroeconomic variable is Consumer Price Index (CPI). CPI is measure
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tool that used to calculate average change in prices of goods and services during a specific period. It also used to assess inflation rate. According to (Chen, Nai-Fu, Roll, Richard and Ross, A. Stephen, 1986), inflation has negative impact to the market including stock market. Therefore, market efficiency is affected by result of CPI as well as the effect of inflation on stock price is insignificant. Second macroeconomic variable is money market. The relationship between interest rates and stock prices is inverse relationship. It means that the interest rate is increasing will make the increasing of opportunity cost of holding money which will decreases the stock prices. Thus, it is important to control the money in market to enhance the stability of market. Third macroeconomic variable is Foreign Exchange Rate (FEX). FEX will give a significant impact to the price of import or export goods. For example, increasing FEX of U.S. dollar, the imported products from U.S. will become more expensive and exported product to U.S. will become cheaper. Therefore, the market also be affected by FEX as well as the stock price be influenced by FEX.

4.0 Decision usefulness Decision usefulness has been one of the criteria for preparing annual report for over forty years. Its authority however, was not gained over time through explicit theory development or argumentation, but was instead born full grown (Staubus, 1999, p. 163). The decision usefulness approach is an approach on the preparation of annual report information in order to understand the nature and types of information that decision maker need. The proposed IASB Conceptual Framework explicitly states: The objective of general purpose external financial reporting is to provide information that is useful to
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present and potential investors and creditors and others in making investment, credit, and similar resource allocation decisions (IASB, 2008, p. 18). The annual report is prepared for decision maker from various stakeholders. For financial information to be useful, it must possess two fundamental qualitative characteristics that are relevance and reliability. Relevant information is information that has either analytical value or response value or sometimes both. Relevant information also must available on a timely basis before it loses its capacity to influence decision making. To be reliable, information must closely characterize the purpose of presenting it. It must inclusive all material respects, verifiable and it must be neutral that it does not try to influence the decision maker towards any specific decision Financial statements primarily focused toward facilitating investment decisions. Investors are interested in financial reporting because it provides information that is useful for their reviewing on the company performance to make decisions. When making these decisions, there are two factor investors take into consideration. The first one is on the ability to generate net cash inflows and the second is managements ability to protect and enhance the capital providers investments. Financial reporting should therefore help investors assess the amounts, timing, and uncertainty of prospective cash inflows from dividends or interest, and the proceeds from the sale, redemption, or maturity of securities or loans. In order for investors to make these assessments, the economic resources of an enterprise, the claims to those resources and the changes in them must be understood. Financial statements and related explanations should be a primary source for determining this information. As annual report is one of the main sources of financial and non financial information needed by the stakeholder. It should be presented in a way that stakeholder can understand it. In order to attach investor to invest in the company, the information given must be the information that the stakeholder intend to have.

4.1 Problems that would emerge in decision usefulness approach

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If the company annual reports are prepared based on decision usefulness, it will leads to the problems of identifying the users of financial reports and selecting the information they need to make good decisions. Given there are many groups of users of financial reports, the management will have difficult to select which group to prioritize in preparing the financial reports. Even though it is important to fulfill the investors needs, as they are the major constituency of users, the management must not neglect the needs of other users too. Next, uniformity and standardization are often the major concerns for regulators of accounting standards to determine the type of information that is to be disclosed in the corporate reports. The main objective is to enhance comparability and therefore to increase the decision-usefulness of such information especially in the capital markets for users of financial reports. However, uniformity and standardization may not easy to be achieved as users may require different information. A direct implication would be reduced ability of the users to compare the information across companies. Such information asymmetry will then cause the market to be inefficient, which defeats the objectives of the efficient market research. As implied by the efficient market hypotheses, the market is efficient when investors have all the information, be it historical or valuable proprietary information. As such, so as to keep them informed at all times, financial reports may have to be prepared on a more frequent basis. Constant changes to the business operations and business environments have to be immediately dispersed to the users so that stock prices reflect the true value of the firm. This may seem impossible given that there is always a time lag between the time when the events happen and when the information is processed and later released as public information, so as to allow for report preparation and verification. Moreover, weak form of EMH stated that historical information will not affect the stock price. Therefore, forward-looking information is more useful for decision making.
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Unfortunately, this information is normally based on management prediction and judgment, thus subject to manipulation. As a result, the management will manipulate the information in order to give investor a good expectation to the companys future profits and cash flows. If the market is efficient, the manipulation of information will be reflected directly in the stock price. Consequently, the stock price will increase, which does not truly represent the companys real financial performance and financial position. In addition, the qualitative benefits of annual report should justify the cost of extracting the information to prepare the annual statement. Currently, the companies are already facing extensive cost to comply with the requirement of IFRS and other regulations. To add information that is useful for decision would increase the cost of annual report to the company. For illustration, the companies have to engage highly qualified professionals and pay them high fees to prepare this information. Therefore, it is very costly to prepare annual report on the basis of decision usefulness. Another hidden cost of this kind of report is the possibility that confidential information may be revealed to competitors such as profitability of a segment, plans for new products or entries into new markets and others. This will result in creation of competitive disadvantage. 5.0 Different Conditions and User Groups for Financial Reporting besides EMH In order to have market efficiency, there are several conditions that need to be fulfilled which are as at following: (a) The asset (or assets) which are the source of the inefficiency has to be traded. (b) The transactions costs of executing the scheme have to be smaller than the expected profits from the scheme. (c) There should be profit maximizing investors who recognize the potential for excess
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return, replicate the beat the market scheme that earns the excess return and have the resources to trade on the stock until the inefficiency disappears.(Market Efficiency Definition and Tests) There are several user groups and conditions for the criteria for financial reporting different from what is obtained from the efficient market research. The first and foremost is the investor groups as efficient market hypothesis is usually concerned with the investor groups. Under efficient market hypothesis, the investors are assumed to be rational in selecting a particular company stock by referring some quantitative elements such as the financial information which inclusive of net profit, dividend payout ratio and so forth. However, this kind of financial information does not satisfy the investors as it may lead to inaccurate decision making. Thus, based on the financial reporting requirements, this kind of investor groups will search for the non-financial information such as the board members performances, the company strategies (shortterm and long-term) and the other important elements to aid them in choosing a stock to be invested. In investors opinions, they feel that relevance of information has primacy over reliability. Thus, the combination of high-quality disclosures with the fair values concerned in the financial information presents more decision-useful information for the decision making purposes. Secondly, the public group which is the non-investor group. Under efficient market hypothesis, the disclosure of information is mainly on the stocks price and the current and the historical information to the users. However, for the non-investor groups, they are not concerned with stocks price. In fact, they emphasize more on the non-financial information such as the corporate social responsibility. In this sense, the financial reporting has provided them appropriate information based on their requirements and needs. Thus, the companys performance is not merely judged by its financial performance, but also the other crucial factors such as the contribution and the welfare to the society.

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Thirdly, the suppliers or creditors do affect by the financial reporting as well. We are acknowledged that the investor groups are the main concern for the efficient market hypothesis. However, the creditors are always being neglected in the theory. The creditors requirement also play pivotal role as well. In the financial reporting, they demand for the companys liquidity ratio or debt ratio to help them whether this company is performing well in the debts and the cash flow issue as well. If the company is not efficient in dealing with the cash flow, then it is most probably in having solvency and default issues. For the regulators perspective, there has been a general belief that economic development has come at the cost of environment and has brought about large scale destruction of nature and growth process. The negative externalities of economic development started largely in response to pressure from non-governmental organisations (NGOs) and civic society claimed that many firms lack of social and environmental responsibility. Hence, the regulatory bodies emphasizes that a companys financial health is dependent on much more than the assets on its balance sheet and the movements on its profit and loss account. (Chakrabarty, 2011). The nonfinancial information in non-financial reports plays pivotal role in building up a companys risk-return profile.

The interests of all users have economic dimensions and should be satisfied by the entitys information which is necessary to establish the entitys intrinsic value. Apart from the regulatory group, the management group which consists of the owners of capital in a company, managers, operational staffs and so forth. The owner of the company is concerned with managing the capital in the best possible way. Moreover, the information which they have provided such as for their capital allocation, capital budgeting and other operational decisions are also relevant to other users. The capital allocation and capital budgeting decisions are normally decided by the top management or the executive managers. On the other hand, the operational decisions are usually
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handled by the operational or line staffs as they are more experienced or more knowledgeable in making prompt and accurate decisions to avoid miscommunication in the operations and the misinterpretation in the presentation of financial statements. All the above information is not available under the efficient market research and thus the financial reporting can aid in the decision making. In addition, there is also another essential group which is auditor or accountant group. Auditors are normally concerned with the application of the accounting principles to determine whether the principle is acceptable and reasonable for the particular transaction. Furthermore, the auditors also need to consider and interpret the substance transaction which may differ materially from their forms. (Ekholm & Troberg, 1998). It is impossible to obtain such information under efficient market hypothesis as it focuses on the investor groups and the availability of the current stocks price relevant information. On top of that, the different situations for different user groups plays vital role for the financial reporting. Under the boom economic condition, the investors would like to demand for some financial information such as the dividend payout schemes and so forth. However, this kind of information is not always accurate as the investors are appeared to believe that the particular stocks price will increase without relying on the financial reporting and other non-financial information. Thus, it is not encouraged to depend on the efficient market theory solely. Likewise, in the recession condition, most of the companies are not performing well especially the solvency issue. However, there is minority company which tries to conceal the liquidity issue by not reflecting true and fair view of their reporting so to attract more investment. Many investors are trapped if they have not requested more information from the financial reporting and other nonfinancial information. Next, confidentiality of information is the main consideration as well. The auditors are entitled to receive some information which is necessary for the audit engagement. Some of the sensitive issues and information are not available under the efficient market theory as the auditors have the duty to safeguard the confidentiality. The auditors need
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to consider that the information in the financial statements are required to provide true and fair view to the shareholders and stakeholders. (Ekholm & Troberg, 1998).

6.0 Conclusion In a nutshell, Efficient Market researches on financial reporting that focus mainly on the users of financial information and also the contents of corporate reports may miss up a lot of important factors that are essential in evaluating the validity of Efficient Market Hypothesis in terms of financial reporting. The users will not be able to see the whole picture of the inefficient of the stock market. Besides, the investors will not be price-protected as the price adjusted in the market is not correct, even that the market is deemed efficient and should reflect the true value of the companies stock prices. Therefore, the investors will tend to be too optimistic towards the stock market, and further distort the efficiency of the stock market.

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7.0 Bibliography Chakrabarty, D. K. (2011). Non-financial reporting what, why and how Indian. National Conference (pp. 1-9). Mumbai: Global Reporting Initiative (GRI) and NextGen. Ekholm, B.-G., & Troberg, P. (1998). Quo Vadis True and Fair View? Journal of International Accounting, Auditing & Taxation, 7(1) , 113-129. Market Efficiency - Definition and Tests. (n.d.). Retrieved March 25, 2012, from http://pages.stern.nyu.edu/~adamodar/New_Home_Page/invemgmt/effdefn.htm Bykalvarc, A. (2010). Evidence from Turkey. The Effects of Macroeconomics Variables on Stock Returns , 404-416. Chen, Nai-Fu, Roll, Richard and Ross, A. Stephen. (1986). Economic Forces and the Stock Market. Journal of Business , 383-403. Fama, F. E. (1970). A review of Theory and Empirical Work. Efficient Capital Markets , 383-417. Macroeconomic - Introduction. (2012). Retrieved April 2012, from Investopedia.com:
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http://www.investopedia.com/exam-guide/cfa-level1/macroeconomics/default.asp#axzz1rNKORtWr Rational Fools vs Efficient Crooks: Efficient Market Hypothesis. (2011, November). Retrieved April 2012, from Softpanorama: http://www.softpanorama.org/Skeptics/Financial_skeptic/Casino_capitalism/Pseudo_th eories/Permanent_equilibrium_fallacy/Efficient_market_hypothesys/index.shtml Rational Fools vs Efficient Crooks: Efficient Markets Hypothesis. (n.d.). Retrieved April 2012, from Softpanorama: http://www.softpanorama.org/Skeptics/Financial_skeptic/Casino_capitalism/Pseudo_th eories/Permanent_equilibrium_fallacy/Efficient_market_hypothesys/index.shtml Singh,R. & Ellis,K. (2010). Political Economy Factors Affecting Efficient Functioning of Markets. Commonwealth . The Efficient Market Hypothesis on Trial:A Survey by Philip S. Russel and Violet M. Torbey. EFFICIENT MARKETS HYPOTHESIS, Andrew W. Lo, To appear in L. Blume and S. Durlauf, The New Palgrave: A Dictionary of Economics, Second Edition, 2007. New York: Palgrave McMillan. The Efficient Markets Hypothesis, Jonathan Clarke, Tomas Jandik, Gershon Mandelker, http://www.turtletrader.org/pdfs/efficient-market.pdf Eugene F. Fama, Random Walks in Stock Market Prices Financial Analysts Journal, September/October 1965. ACCOUNTING FOR BUSINESS COMBINATIONS. (n.d.). European Financial Reporting Advisory Group . Business Reporting Through the Lens of the Investor. (2010). International Federation of Accountants , 1-6. Conceptual framework. (n.d.). Retrieved April 10, 2012, from International Accounting Standard Board: http://www.ifrs.org/NR/rdonlyres/1B83C4D1-9332-434E-8891EE11DC83FEDF/0/0706son1B.pdf Conceptual framework for. Cornelia Beck, J. D. (n.d.). Corporate non-financial. CPA .
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Non-financial reporting. (2009). 1-4. Professor Adrian Henriques, M. U. (2010). THE REPORTING OF NON-FINANCIAL INFORMATION IN. CORE Coalition . Report, T. r. (2010). Statement of Financial Accounting. (n.d.). Retrieved April 9, 2012, from Financial Accunting Standard Board : http://www.ifrs.org/NR/rdonlyres/1B83C4D1-9332-434E8891-EE11DC83FEDF/0/0706son1B.pdf The Measurement persprective on decision usefulness. Williams, P. F. (n.d.). RETHINKING DECISION USEFULNESS. 3-17.

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