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THE INFORMATION CONTENT OF INFLATION‐ADJUSTED FINANCIAL STATEMENTS
Author(s) -
Brayshaw R.E.,
Miro A.R.O.
Publication year - 1985
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.1468-5957.1985.tb00782.x
Subject(s) - allowance (engineering) , inflation (cosmology) , accounting information system , business , accounting , control (management) , economics , actuarial science , operations management , physics , management , theoretical physics
This paper seeks to examine whether current cost accounting information provides additional useful information to users of accounts by examining the impact of such information on stockmarket activity. The statistical tests compare the share price movement of companies reporting current cost informa‐ tion with a control group of matched companies reporting only historic cost information. Wherever possible allowance is made for the impact of other information released at the same time as accounting information. The results seem to indicate that the release of current cost information had no traceable effects on the share market prices of the companies concerned.