Ball and Brown used an event study to look at how market prices correlated with the release of companies' annual reports. Specifically, they looked at how the information content of the annual reports affected market returns from the shares of the company.

Discuss how, in a study like this, you might evaluate whether the information content of the annual reports was good or bad news. Be specific and do not just repeat what Ball and Brown did in their study but think about how studies similar to this would evaluate information content.