Which of the Following Is a Finding of Beaver,Lambert and Morse

question 26

Multiple Choice

Which of the following is a finding of Beaver,Lambert and Morse (1980) ?

• A) Share prices and related returns are related to accounting earnings.
• B) Over short intervals, earnings are more strongly associated with returns than are realised cash flows.
• C) Fair value estimates of bank's financial instruments seem to provide a better explanation of bank share prices than historical cost.
• D) Revaluation of assets results in better alignment of market and book values.

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Definitions:

Direction

Guidance or supervision provided to achieve a goal or follow a particular course of action; often implies leadership or the process of setting goals.

Intensity

The degree of strength, force, or energy with which an action is executed or a characteristic is manifested.

Cross-Cultural Values

Beliefs or priorities that vary among different cultures, affecting behavior, practices, and perceptions.

Power Distance

A cultural dimension that describes the extent to which less powerful members of organizations and institutions accept and expect power to be distributed unequally.