The International Financial Reporting Standards (IFRS) are a collection of general-purpose reporting standards that result in the provision of useful information for stakeholders of an entity. They encompass accounting standards and sustainability disclosure standards, developed by the International Accounting Standards Board (IASB) and International Sustainability Standards Board (ISSB) respectively, which result in the “provision of high-quality, transparent and comparable information” (IFRS Foundation, 2021a). Financial reporting standards are essential for providing market participants reliable information to make informed decisions when engaging in business activities....
Asymmetric Cost Behaviour
Cost behaviour describes the cost sensitivity of changing activity levels. The traditional cost behaviour model assumes a symmetric relationship between variable cost and volume (Noreen, 1991). As it is difficult to observe total activity, total revenue can be used as a proxy for activity by expressing variable cost as the product of the unit-variable cost (UVC) and volume (Q): Total Cost (TC) = Fixed Cost (FC) + Unit Variable Cost (UVC) * Volume (Q)...
Empirical Portfolio Analysis
This empirical analysis covers the monthly excess returns of 15 anomaly portfolios and the U.K. market index itself over a sample period of 252 months (January 1990 to December 2010). Statistically significant portfolios are identified that possess a positive market alpha that exceeds zero across the whole sample period. Further, the validity of the zero alpha null hypothesis of the CAPM is determined and how accurately it prices the anomaly portfolios....