Discuss why and how the share market reacted and its implications for VW Group’s share price

Question 1 (i) Consider whether VW Group has broken the terms of its social contract. Apply specific systems-based theories to predict what actions you would expect VW Group management will undertake in periods subsequent to the scandal in terms of its financial accounting disclosure practices. (ii) Apply relevant systems-based theories to explain the reaction of VW Group management following media announcements of the emissions scandal. (iii) Use specific systems-based theories to explain the reaction of other companies within the automobile industry following the emission scandal that disclosed environmental pollution. Question 2 (i) Discuss why and how the share market reacted and its implications for VW Group’s share price following the company's media announcement of the emissions scandal. (ii) Does the market reaction to Volkswagen Group’s media announcement imply market efficiency or inefficiency? Elaborate