The objective of this project is to demonstrate the effect of releasing accounting information concerning profits on the valuation (i.e. share price) of an Australian;listed company. The project has three educational objectives. First, it demonstrates to students that, in some cases, accounting related information has an impact on investor behaviour via the share prices (or returns, which are changes in share price).

Second, it shows how we have to control for the effects of other factors when trying to assess causal relationships. In this case, movements in the market must be controlled for in order to see the real effect of a company profit announcement on the share price of the company. The third objective is to encourage initiative, inquisitiveness and the development of basic financial statement analysis skills as students investigate company;specific factors behind the economic performance being announced by the company.

Note that because of the financial statement analysis component of this assignment, students are advised that companies in the insurance, investment, banking and financing industries are not suitable and should not be selected.