Unformatted text preview: Matt Steger Seminar #9 – The Measurement Perspective to Decision Usefulness September 22, 2009 In our current readings, an obvious departure is made from the traditional theories that have been, until today’s seminar, been utilized in explaining market behaviors. That is, the Efficient Markets Hypothesis, the rational investor, and the CAPM are placed into question through a series of alternative theories, concepts and models. In Chapter 6, Scott introduces to us the measurement approach and the growing trend pointing towards its use and incorporation into the financial statements proper. The belief is that the current values supported by such a measurement possess a higher amount of reliability and relevance for investors who are attempting to predict firm performance and value. Scott suggests that because securities markets are not fully efficient, accountants should be aware of the implications that are caused by such and not allow themselves to wear the blinders that are caused by the constrictiveness of the models that he has presented to us, the readers, up until this point. He introduces several market anomalies which...
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- Financial Markets, Efficient-market hypothesis, Efficient markets hypothesis, Incomplete Revelation Hypothesis