The usefulness of financial statements to investors in the light of classical and behavioral concept of finance
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The paper discusses the problem of the usefulness of financial statements, espe-cially for capital market participants. The information needs of investors are char-acterized and the information usefulness from investors perspective is explained. The problem of discrepancy between enterprise market value and book value is briefly discussed. Then the author discusses the place and role of accounting as an information system in the context of classical and behavioural theory of finance. Different implications for accounting of these competing theories are described and the need for further research concerning the use of the behavioural concept of fi-nance in the theory and practice of accounting is explained.
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