Accounting and Capital Markets: A Survey of the European Evidence

Posted: 11 Feb 2002


The relationship between accounting information and capital markets has been the subject of numerous studies, especially in the US. The purpose of this article is to examine the corresponding evidence in Europe. This review classifies the European literature into three groups: studies of the market reaction to newly released accounting information, studies of the long-term association between stock returns and accounting numbers, studies devoted to the use of accounting data by investors and to the impact of market pressure on accounting choices. The paper reviews and summarizes the main results related to each of these topics. It also addresses some methodological issues and provides suggestions for future research.

JEL Classification: G12, G14, M41, M43

Suggested Citation

Raffournier, Bernard and Dumontier, Pascal, Accounting and Capital Markets: A Survey of the European Evidence. Available at SSRN:

Bernard Raffournier (Contact Author)

University of Geneva ( email )


Pascal Dumontier

University of Grenoble ( email )


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