Premium
ASSET PRICING AND FINANCIAL REPORTING WITH CHANGING PRICES
Author(s) -
Morris Michael H.,
McDonald Bill
Publication year - 1982
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1982.tb01002.x
Subject(s) - parallels , capital asset pricing model , inflation (cosmology) , asset (computer security) , economics , consumption based capital asset pricing model , financial economics , actuarial science , systematic risk , risk premium , business , finance , computer science , operations management , physics , computer security , theoretical physics
This study empirically investigates the recent SFAS No. 33 requirements to determine if the inflation disclosures, or information similar to it, are impounded in security returns. An attempt is also made to determine which of the two diverse disclosures best represent the information impomded by the market. The investigation utilizes a methodological framework arising out of currently accepted asset pricing theory. The results suggest that the current cost data parallels the information impounded in security returns and that it provides risk information not included in the commonly employed systematic risk factor, beta.