3101AFE Accounting Theory Suggested Solutions to Workshop 4 Capital Markets Research PART A: GENERAL QUESTIONS QUESTION 1: How would a researcher undertaking capital markets research typically justify that a particular item of information has 'value' to investors? QUESTION 2: Evaluate the following statement: If an item of accounting information is released by a corporation and there is no apparent change in the share price of the company, the information is not relevant to the market and therefore there is no point in disclosing such information again. QUESTION 3: If an organisation's operations rely heavily on the specialised expertise of its management team, would you expect there to be a higher or a lower correspondence between the net assets recognised in the statement of financial position (balance sheet) and the total market value of the organisation's securities, relative to an organisation that relies more on tangible assets (for example, commonly used plant and machinery) to generate its income