Critically discuss why markets greet reported stronger earnings (profits) by companies with higher share prices especially when

Question:

Critically discuss why markets greet reported stronger earnings (profits) by companies with higher share prices especially when it is common knowledge that companies often manipulate their reported earnings.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting For Non Accounting Students

ISBN: 9781292286938

10th Edition

Authors: John Dyson, Ellie Franklin

See More Books

Question Posted: Dec 16, 2022 09:59 AM

See More Questions

It is common knowledge that the temperature of air rises as it is compressed. An inventor thought about using this high-temperature air to heat buildings. He used a compressor driven by an electric...
It is common knowledge that the visible light spectrum extends approximately from 400 nm to 700 nm. Roughly, 400 nm to 500 nm corresponds to blue light, 500 nm to 550 nm corresponds to green, 550 nm...
It is common knowledge that Sams boss Dom has been fudging the weekly productivity figures. Several employees, including Sam, have spoken to him about this, but he continues to do it. Sam has...
1) Determine the pH of a 4.3*10^-4 M NaOH solution. 2) why would we say that a solution with a H+ concentration of 1.00*10^-7 M is said to be neutral if it contains acid, shouldn't be acidic?
Another question asked in the Gallup poll in Exercise 1 was: Do you think that rich people in America today are happier than you, less happy, or about the same? (Newport, 2012). Of the 1008...
A hand-pumped water gun is held level at a height of 0.75 m above the ground and fired. The water stream from the gun hits the ground a horizontal distance of 7.3 m from the muzzle. Find the gauge...
Prove that the density of the pair $\left(\exp \left(W_{\Theta}+ u \Theta ight), A_{\Theta}^{( u)} ight)$, where $A_{t}^{( u)}=\int_{0}^{t} e^{2\left(W_{s}+ u s ight)} d s$, is...
Bob Hansen opens a retail store on January 1, 2013. Hansen invests $50,000 for all of the common stock of the firm. The store borrows $40,000 from a local bank. The store must repay the loan with...
If the following 20-mm-by-20-mm square represents 100%, draw rectangles 20 mm wide that represent each of the given percentages. (a) 25%. Select the correct answer below and fill in the answer box to...
(a) Calculate the Z-scores for Ali plc and Bhaskar plc (see SAQ 7.1 on pages 250 251), using the Altman model set out on page 280. (b) Comment on the Z-scores for the two businesses and the validity...
What is the difference between (a) Horizontal analysis and (b) Trend analysis?
There are different ways in which analysts calculate ROCE some using only equity for capital employed, some using equity plus long-term debt, some adding borrowing classed as current to the mix....
a. Express the area A of the cross-section cut from the ellipsoid by the plane z = c as a function of c. b. Use slices perpendicular to the z-axis to find the volume of the ellipsoid in part (a). c....
Q1 - According to the Interest Rate Rarity (IRP), theory: a.The currency of the country with higher interest rates should be at a forward premium in terms of the currency of the country with the...
Will goal consensus in criminal justice organizations ever be possible? What are the major obstacles and disadvantages to having goal consensus in criminal justice organizations?
A block of mass M = 1.2 kg, connected by a cord and pulley to a hanging block of mass m = 4.4 kg, slides and accelerates across a surface with coefficient of kinetic friction k = 0.18. Find the...
What barriers to communication exist within criminal justice organizations? What impact can communication barriers have on the community? How can criminal justice organizations effectively deal with...
On October 1, 2025, Entity H borrowed $50,000 on a one-year, 6% note, interest and principal due at maturity. What is the maturity value of the note? On October 1, 2025, Entity H borrowed $50,000 on...
a. Prepare the comparative balance sheet in narrative format as at 31 December 2013 and 31 December 2012. b. Comment on the financial position of the entity in 2013 relative to 2012. For this...
Draw two scatterplots, one for which r = 1 and a second for which r = 21.
Distinguish between qualitative and quantitative approaches to researchand give some of the key advantages and limitations of each approach.
Define response rate and discuss why a marketing manager might be concerned about the response rate achieved in a particular survey. Give an example.
Prepare a table that summarizes some of the key advantages and limitations of mail, e-mail, telephone, and personal interview approaches for administering questionnaires.
The Village Butcher Shop traditionally makes its meat loaf from a combination of lean ground beef and ground pork. The ground beef contains 80 percent meat and 20 percent fat, and costs the shop 80...
What term refers to the elevation of subjects of a painting by portraying them in poses and settings normally associated with positions of high status and power?
A vertical dam retains 18 m of water. It is pierced at its base with a semi-circular door 6 m in diameter (the base of the door is its diameter), as indicated in the figure below. door 6 18 0 a) Let...

Critically discuss why markets greet reported stronger earnings (profits) by companies with higher share prices especially when

Question:

Step by Step Answer:

When a company reports stronger earnings profits it indicates that the company is doing well and is ...View the full answer

Accounting For Non Accounting Students

Students also viewed these Business questions