The Implications of the Efficient Markets Hypothesis for Corporate Managers

question 1

True/False

The implications of the efficient markets hypothesis for corporate managers regarding accounting earnings are that managers should not focus on accounting earnings but instead focus on maximising cash flows.

---

Definitions:

Japan

An island country located in East Asia, known for its rich culture, technological advancements, and economic power.

United States

A federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for its significant influence in global politics, economy, and culture.

TNC

Transnational Corporation; a large company that operates in multiple countries across the globe.

Economic Gains

Increases in wealth, financial health, or resources, often measured in terms of income, profits, or value.