Knowledge that Transforms

Disclosures, Investor sophistication, Unequal information, Stock valuation

Prior to a comprehensive attempt to resolve many financial accounting controversies existing in United States,' more about interaction of accounting data with decisions made by known users of that data is needed. An attempt to acquire additional would be in line with implied decision-making criterion in American Accounting Association's statement that accounting is the process of identifying, measuring and communicating economic to permit informed judgments and decisions by users of information (emphasis supplied).2 In past few years, a number of accounting researchers have used behavioral field experiments as a means of investigating relationship between changes in methods used to gather and present financial accounting data and decisions made by specific users of that data.3 These researchers have generally concluded that decisions made by

Robert G. May, The Influence of Quarterly Earnings Announcements on Investor Decisions as Reflected in Common Stock Price Changes, Journal of Accounting Research, Vol. 9, Empirical Research in Accounting: Selected Studies 1971 (1971), pp. 119-163

Governmental accounting, China, Chou Dynasty, Budgeting

Several recent studies have been conducted to determine the level of job satisfaction, and the determinants thereof, among accountants.' All these studies utilized the Maslow theory, which is based on a hierarchy of needs.2 Maslow's theory has sometimes been criticized on philosophical, methodological and hierarchical grounds. The theory states that human needs are ordered; that is they range from lower-order to higher-order needs. As one need is adequately fulfilled, the individual moves to the next

Cost variance, Cost control, Capital investment decision

The purpose of this paper is to extend the results of the analysis [9] on the optimal timing of messages.' The model and theorems [9] are applicable to a situation involving the of a single (or aggregated) decision-making unit's performance terms of a single (or aggregated) goal. This goal need not be constant over time. The model used [9] is a continuous-time finite horizon model whose formulation and optimization involved the use of a finite-state continuous-time Markov process and tools from continuous-time optimal theory. In the present paper, attention is restricted to a two-state process. This restriction decreases the generality of the results return for a more specific model and more specific theorems. A two-state process is typically chosen for analytical treatment because of expositional convenience or practical applicability. The two states of the process are defined by the usual general descriptions: in control or consistent with goal(s) and out of control or inconsistent with goal(s). This type of process has been analyzed using mathematical programming, quality-control, and Markov chain techniques.2

APB Opinion No. 14, Convertible securities, Convertible Bonds, EPS

Managerial decision making, Budget adaptiveness, Budget Tightness

C-V-P Analysis, Uncertainty, Cost-volume-product Analysis, Volume changes