Impact of Asymmetric Information on the Investment Decision
Florentina Istrate ()
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2018, vol. 8, issue 2, 287-294
Accountant theoreticians consider the accounting information system as an integral part of the control system of the entire organization, accounting information being an important factor in the investment decision making process. A well-organized financial information system that has in its content relevant managers' indicators, calculated on the basis of accurate and accurate information, acquires an increasingly important role both for the enterprise itself and for its partners. In addition, the resulting indicators will serve to develop a cost-benefit, risk and value diagnosis. The use of financial information by financial analysts is related to four key issues: (1) growth prospects of the economy are based on future expectations regarding the economy, with particular importance to the factors that have a major influence on this (profit, dividend and price of the action); (2) significant factors of the financial market, focusing on identifying the factors that influence the position of the enterprise on the market; (3) investment parameters, taking into account the dividends and the market price in conjunction with the accepted risk; (4) investment strategies where short, medium or long-term investment recommendations are based on two aspects: share price expectations and synchronization in terms of enterprise performance.
Keywords: Adverse selection; moral hazard; investment decision; financial statement; evaluation values (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:hur:ijaraf:v:8:y:2018:i:2:p:287-294
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