We tested the contradictory hypotheses of increase-decreasein volatility with fair
valuation through mean and median comparisons for standard deviation of revenues,
profits, assets and return on assets. In order to control for relative variations we also
compared coefficient of variations.
In order to test whether it is fair valuation or historic cost that entails less efficient
investment decisions, we performed mean comparisons for return on assets between
both samples.
We tested the hypothesis that fair value increases manipulation through the traditional
ratio of standard deviation of profit to standard deviation of cash flow.