Introduction
Research Methodology
Deductive approach
Inductive approach
Pragmatic Approach
Scientific Method
Other
Deductive Approach
Inductive Approach
Pragmatic
Approach
The Scientific
Method
Involves
the following steps:
Draw a tentative conclusion
Analyze and evaluate data
Collect data necessary to test the hypotheses
Other Research
Approaches
Ethical approach
Behavioral approach
The Outcomes of
Providing Accounting
Fundamental analysis
Information
Fundamental Analysis
Investor decisions
Buy
Hold
Sell
The
Price
Supply
Demand
Weak form
Semi-strong form
Strong form
Weak Form
Semi-Strong
Form
Strong Form
Risk:
U. S. treasury bills
Diversification
Stocks can be combined into a portfolio that is less risky than any
of the individual stocks
Systematic risk
The Relationship
Between Risk and
Return
Rs = R t + Rp
Where:
Rs = Expected return on a given risky
security
Rt = The risk free return rate
Rp = The risk premium
The Relationship
Between Risk and
Return
Implications of
CAPM
Positive Theory
Agency theory
Prices
Agency relationships
Public choice
Economic regulation
Positive Theory
Positive Theory
2
3
Human Information
Processing
Human Information
Processing
HIP studies
Consequences:
Selective perception
Difficulty in making optimal decisions
Sequential processing
Critical Perspectives
Research
Critical Perspectives
Research
Critical Perspectives
Research
2
3
Accounting Research
Education and Practice
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