Differentiate some of the implications of Efficient Securities Markets (ESM) for financial reporting in the eyes of various groups of stakeholders. Explanation should be on how your selected company i.eNestle Malaysia expplain their financial status analysis to their respective stakeholder?

Differentiate some of the implications of Efficient Securities Markets (ESM) for financial reporting in the eyes of various groups of stakeholders. Explanation should be on how your selected company i.eNestle Malaysia expplain their financial status analysis to their respective stakeholder?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 1MCQ: Which of the following use financial statement data to make decisions? a. customers c. suppliers b....

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Concept explainers

Goals and Objectives

A goal motivates a person to achieve a desired outcome using the available resources within a specified time limit. Having goals helps a person focus on a specific desire and directs them to achieve it. An objective is a specific action and a measurable process to achieve the desired goal. A goal needs a specific action plan, i.e., an objective, to be accomplished.

Question

Differentiate some of the implications of Efficient Securities Markets (ESM) for financial reporting in the eyes of various groups of stakeholders.
Explanation should be on how your selected company i.eNestle Malaysia expplain their financial status analysis to their respective stakeholder?

Definition Definition Degree to which financial markets incorporate all available information into the prices of assets. In a more efficient market, the prices reflect the available information more than that in a weak efficient market. It is difficult for investors to outperform the market in a strong efficient market. This is because all the available information is already discounted in the asset's price. However, in a weak-form efficiency, the market does not reflect all information in the asset's price. As a result, it becomes easier to generate better returns in a weak form or an inefficient market.

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