Browsing by Author "Knight, Rory Francis Murphy"

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    The efficient market hypothesis and a change to L.I.F.O. : an empirical study on the Johannesburg Stock Exchange
    (1981) Knight, Rory Francis Murphy; Affleck-Graves , J F
    The dissertation presents a discussion on the Efficient Market Hypothesis (EMH) with particular reference to the implications for Financial Reporting. Furthermore a conceptual framework is proposed for empirical research in accounting. The results obtained indicate a significant negative reaction to the announcement of a change to L.I.F.O, in the aggregate, which was shown to be directly proportional to the size of the impact on reported earnings. The relative risk of the firms was shown to be an intervening variable in that the low risk firms experienced a less severe negative reaction. It is concluded that the JSE is an inefficient market since the information is impounded slowly. As the market appears to be unable to look behind the accounting numbers, further evidence of inefficiency is apparent. Finally the thesis concludes that the JSE may be developing as the most recent reactions were less negative and far quicker, on aggregate.
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    The association between published accounting data and the behaviour of share prices
    (1983) Knight, Rory Francis Murphy; Affleck-Graves, J
    This dissertation presents a variety of empirical studies in financial accounting with an emphasis on the association between published accounting data and share prices. These studies are the first attempt at empirical research in accounting in South Africa. There has been an alarming lack of research in this discipline in this country and only 14 doctorates in the accounting field have ever been conferred by South African universities. The major aim of the dissertation is to contribute to the understanding of the usefulness of accounting data and the effect that certain financial disclosures (and non-disclosures) have on share prices and consequently on the wealth of the users and potential users of these data. An essential premise of this thesis is that the primary purpose of financial reporting is the provision of information useful for economic decision making.