What question did this study set out to answer?

The central aim is to understand how anticipated and unanticipated inflation affects security returns using SFAS 33 disclosures.

The Relevance of SFAS 33 Inflation Accounting Disclosures in the Adjustment of Stock Prices to Inflation.

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The study tests how stock prices react to inflation disclosures under SFAS 33, suggesting implications for investors.

The central aim is to understand how anticipated and unanticipated inflation affects security returns using SFAS 33 disclosures.
Analyzed SFAS 33 data to evaluate inflation sensitivity of firms.
Stratified companies based on their reaction to inflation for a cross-sectional examination.
Examined security return responses during the 1980-82 inflationary period.
Confirmed significant negative effects of unanticipated inflation on security returns from 1980 to 1982.
Found no correlation between market measures and accounting measures of inflation sensitivity.

McDonald et al. (1984) studied this question.

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