Major In Accounting

Introduction

Many organizations today place significant emphasis on ethics and the financial decision making process within the organization. The concept of efficient market hypothesis (EMH), which suggests that "an efficient market impounds new information into prices quickly and without bias," (Bowman, 1994, p2) is of prime importance to the accounting field for determining the managers' performance and the effectiveness of having a fully disclosed financial statements.

Discussion

With EMH, stakeholders can determine the effectiveness of the appointed management by observing the stock price. "In major stock markets...a rational consensus will be reached as to the share prices which best reflect ...