Senior Honors Theses

Publication Date

Spring 4-22-2013

School

School of Business

Major

Accounting

Primary Subject Area

Business Administration, Accounting

Keywords

accounting, stock market

Disciplines

Accounting

Abstract

GAAP financial statements are an excellent way of providing comparable information to both investors and creditors. A gradually changing world causes their applicability to everyday financial decisions to be questioned. The AICPA implies a necessity for more pertinent reported information, and others advocate a study into this topic. This paper intends to launch into this research and provides a case study with the current ratio, one of the most basic ratios derived from information given in GAAP financial statements, and its relationship to yearly stock price changes in the New York Stock Exchange. The study concludes that there is no apparent relationship between the current ratio and the change in stock price.

Included in

Accounting Commons

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