Knowledge that Transforms

Abstract Demonstrates how a manager's concern for reputation can distort reports made to superiors about an investment project and affect a firm's capital budgeting decisions. Managerial investment distortion in the choice between short term and long term projects; Underinvestment of the firm as a result of managerial misreporting; Participative budgeting issues.

Abstract Reviews the book `International Guide to Accounting Journals, Second Edition,' edited by J. David Spiceland and Surendra P. Agrawal.

Abstract Reviews the book `Financial Reporting for Segments,' by John M. Boersema and Susan J. Van Weelden.

Abstract Examines the effect of the default risk of debt on the relation between accounting earnings and stock returns. Correlation between equity valuation and the earnings response coefficient (ERC); Cumulative abnormal returns; Equity beta; Earnings persistence; Unexpected earnings.

Abstract Examines analytical models of year-end purchasing decisions of a last in, first out (LIFO) firm. Prediction that LIFO firms are more likely to purchase extra inventory at year-end than first in, first out (FIFO) firms; Effect of taxes on the inventory purchasing policy of LIFO firms; Cost of goods sold management.

Abstract Reviews the book `Accounting for the Environment,' by Rob Gray, Jan Bebbington and Diane Walters.

Abstract Reviews the book `Updating Standard Cost Systems,' by Carole B. Cheatham and Leo R. Cheatham.

Abstract Examines the effect of the book income adjustment on financial reporting using a modified research design. Effect of shifting accounting accruals on the alternative minimum tax (AMT) in 1987.

Abstract Reviews the book `Information to be Included in the Annual Report to Shareholders,' by G,D. Trites and others.

Abstract Reviews the book `Expert Systems in Business and Finance: Issues and Applications,' by Paul R. Watkins and Lance B. Eliot.