Capital markets research in accounting

• Published in: Journal of accounting & economics Vol. 31; no. 1; pp. 105 - 231
• Main Author: Kothari, S.P
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01-09-2001; Elsevier; Elsevier Sequoia S.A
• Series: Journal of Accounting and Economics
• Subjects: Accounting; Accounting research; Accounting theory; Capital market; Capital markets; Economics; Financial reporting; Financial statements; Fundamental analysis; Investment; Market efficiency; Studies; Valuation; United States > US; F30; Financial reporting; Valuation; F00; G15; Capital markets; Market efficiency; M41; Fundamental analysis
• ISSN: 0165-4101; 1879-1980
• DOI: 10.1016/S0165-4101(01)00030-1

I review empirical research on the relation between capital markets and financial statements. The principal sources of demand for capital markets research in accounting are fundamental analysis and valuation, tests of market efficiency, and the role of accounting numbers in contracts and the political process. The capital markets research topics of current interest to researchers include tests of market efficiency with respect to accounting information, fundamental analysis, and value relevance of financial reporting. Evidence from research on these topics is likely to be helpful in capital market investment decisions, accounting standard setting, and corporate financial disclosure decisions.