Match theories and concepts with the corresponding descriptions

Question 19 options:

Their decisions come at random. They are not based on rational considerations.

Occur randomly

If released it would directly affect future cash flows of the firm.

Extent of a security's abnormal market return in response of the unexpected reported earnings

Security market prices do respond to accounting information.

When a person behaves in a manner contrary to that person's self-perception

At all times the prices reflect all information that is publically known.

Measured by the difference between the firm's net income or share price performance and the average performance of a peer group of similar firms

The extent to which fair value accounting increases the magnitude of booms and busts thereby encouraging banks to unduly increase lending in booms and decreasing lending during bad times.

Its comsumption by one person does not destroy it for use by another.

Decision is made based on the highest expected utility

If a firm must report a loss, management may feel it might as well report a large one

The price that would be received in an arm's length transaction between market participants.

Agency contract between the firm and its manager tha attempts to align the interest of owners and manager.

The average opinion of a product or brand by inlfuencers accurately predicts the purchasing behaviour of all consumers.

Giving the transferred asset as collateral.

A way to distract users of financial statements from suspecting fraud.

1.	Rational individual
2.	Unexpected events
3.	The wisdom of crowds
4.	Efficient securities market
5.	Noise traders
6.	Accounting information having value relevance
7.	Earning Response Coefficient
8.	Public good
9.	Fair value
10.	Procyclicalicity
11.	Secured borrowing
12.	Executive Compensation Plan
13.	Relative Performance Evaluation
14.	Taking a bath
15.	Error Camouflage
16.	Cognitive dissonance
17.	Proprietary information
18.	Network Externalities
19.	Decentralized regulation
20.	Income smoothing