Security Market Risk- A Study On Its Relationship With Accounting Information

The Accounting Information System, as a part of the overall Management Information System (MIS), is considered a rich source of significant predictors of risk. The accounting-based risk measures, which have been developed from accounting information, have been viewed as surrogates for the variability of return of a firm?s common equity shares, which operationally measure its market risk and which ultimately lead to the concept of ?beta? coefficient, the market-determined risk measure identified in the Capital Asset Pricing Model (CAPM). Therefore, an issue of paramount concern to the accounting and finance profession is: what is the relationship between the accounting information and the market risk of a security? This book contains the author?s research work spanning over five years during the most turbulent period in the 1990s in the Indian capital market considering one hundred and fifty Indian companies listed in the Mumbai (Bombay) Stock Exchange to seek the answer to this question.