To test whether accounting information and capital markets researchers examine:

Question

Quizplus · Accepted Answer

Accounting information and capital markets researchers typically examine the relationship between unexpected earnings and share returns. This relationship is important because it helps to determine whether and to what extent markets are efficient in processing new information about a company's financial performance. By examining the relationship between unexpected earnings (i.e., the difference between actual earnings and expected earnings) and share returns, researchers can gain insights into how quickly and accurately markets adjust to new information.

To Test Whether Accounting Information and Capital Markets Researchers Examine