Extensive capital market research has been performed to determine the impact of (accounting) earnings and accounting policy (accounting choice/accounting alternatives) on security prices.

How do we know when accounting data has "information content"?

Name two general problems in evaluating "information content". (this could include assumptions that must be made or problems associated with capital market research.)

In general and based on the research literature, do accounting earnings seem to have information content? Briefly elaborate. How about changes in accounting policy? Briefly elaborate. (include any exceptions to the general findings.)