The literature addressing the topics of decision-making and the use of information covers a wide range of fields, each with its financial and managerial accounting 6th edition pdf perspective. Thus, it is not surprising that we are far from reaching agreement in this area. Our paper focuses on the role of financial accounting informations in managerial decision-making.
The findings of our paper revealed that financial accounting informations help managers know what happened in the past and which is the present situation of the company, make visible those events that are not perceptible by daily activities, provide a quantitative overview of the company and help managers prepare for future activities and decisions. To be usefull for decision making, financial accounting information must be intangible, relevant, reliable and comparable. The reality of decision-making reveals that decisions are taken not only in terms of informations and status quo, but based on personal beliefs and representations that shape the personal vision of the world. 2012 Published by Elsevier Ltd. Information asymmetry determines investors to call for auditors services. The auditors offer through the audit reports, a professional, objective and independent opinion regarding the presentation in financial statements of the true and the fair view in the most significant aspects of the financial position and performance, in accordance with accounting framework.
This paper aims to analyze the influence of the audit report, prepared for the financial statements of the listed companies, on the investors’ decision in the financial market regarding the stock acquisition or sale. These decisions have an important impact on the stock return, defined through the relative variation of the stock prices from a period to another. The results achieved from the ANCOVA regression analysis indicate the influence of the auditors’ affiliation to the Big 4 but also the influence of the information provided by the audit report, regarding the audit opinion, and of the information from the financial statement on the stock return. Peer-review under responsibility of the Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi. Further documentation is available here. Sorry, preview is currently unavailable.
You can download the paper by clicking the button above. Enter the email address you signed up with and we’ll email you a reset link. The longer the term of the investment, the greater the accumulation. We will discuss a number of ways money generates money over time. To the investor it is the earnings she can expect to make.
Treasury T-bill rate, T-bond rate, and more. Yet the interest rate is at the heart of all the calculations. In all the discussion below, we assume that inflation has no effect on the calculations. For simplicity, we assume that the prevailing interest rate already includes the expected inflation rate.