Application of positive accounting theory in capital market research & market response to accounting disclosures

• Autor(a) principal: Ananta, Yolanda Agustina
• Data de Publicação: 2023
• Outros Autores: Telaumbanua, Alfanita Gratia, Siregar, Maulana, Muda, Iskandar
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Revista Veras
• Texto Completo: https://ojs.brazilianjournals.com.br/ojs/index.php/BRJD/article/view/65881
• topic: positive accounting theory; capital market research; efficiency; markets

This research examines Positive Accounting Theory and its relationship with the capital market. This theory is based on three hypotheses that underlie managerial accounting theory. Using a qualitative descriptive approach, this research presents an overview of the application of Positive Accounting Theory and capital market research methods. Markets are explained through economic models that include decision trees, supply and demand, and game theory, with external factors such as competitors, consumer behavior, and political and monetary policy influencing the market. In the corporate context, the application of Positive Accounting Theory varies according to the characteristics and internal conditions of the company. However, the use of positive accounting can have a significant positive impact on company sustainability as revealed in the results of previous research. Positive Accounting Theory describes social phenomena as the result of individual decision making based on rational behavior to maximize utility, especially in the context of capital markets.