In examining the issue of whether the choice of accounting methods affects stock prices,studies have found that:
A)accounting depreciation methods can significantly affect stock prices.
B)accounting changes can affect stock prices if the company were either to withhold information or provide incorrect information.
C)accounting changes that increase accounting earnings also increases stock prices.
D)switching depreciation methods can significantly affect stock prices.
E)All of the above.

Question

Quizplus · Accepted Answer

Studies have found that accounting changes can affect stock prices primarily when there is a lack of transparency or misinformation, rather than the specific accounting methods themselves.

In Examining the Issue of Whether the Choice of Accounting