Traditional planning for working capital needs is typically conducted with a relatively short time horizon. In this process, management attempts to optimize the return on existing fixed assets. The period for capital investment planning is much longer, reflecting the irreversibility of these decisions. Current research in the two areas tends to dichotomize these decision processes. The implications seem to be that working capital policies only have impact in the short run. However, it is clear that cash flows for potential capital expenditures are based on assumptions relative to expected future demand and production to meet this demand—assumptions that are necessarily tied to working capital commitments in the long run. The overall planning for credit, inventory, and liquidity should, therefore, be carried out before, or simultaneously with, the capital investment decision. It is a planning requirement that becomes an integral part of the total asset planning system. The vast majority of existing working capital models or long-term capital planning models do not allow for the explicit existence of and the simultaneous interrelationships between these two important subsystems.

Bruce L. Oliver, The Semantic Differential: A Device for Measuring the Interprofessional Communication of Selected Accounting Concepts, Journal of Accounting Research, Vol. 12, No. 2 (Autumn, 1974), pp. 299-316

Although the effects of pure diversification and synergistic mergers on market valuation have been widely discussed and there have been a number of studies estimating. merger performance using the two-parameter model of Sharpe-Lintner, the investigation of the corporate determinants of beta is of recent vintage. A variation on this theme, namely whether merger activity is impounded into beta and its speed of being impounded, is the focus of the Joehnk-Nielsen (J-N) study.

Intuitively, a risk averter diversifies between two investments if there is some sort of negative interdependence. In [3], Samuelson gives the example of buying shares in a coal company and an ice company. It is of interest to characterize this concept of negative interdependence more sharply.

Marion L. Chiattello, Comment: "On the Use of Principal Components Analysis to Interpret Cross-Sectional Differences Among Commercial Banks", The Journal of Financial and Quantitative Analysis, Vol. 9, No. 6 (Dec., 1974), pp. 1047-1051

Journal Article Prices vs. Quantities Get access Martin L. Weitzman Martin L. Weitzman Massachusetts Institute of Technology Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 41, Issue 4, October 1974, Pages 477–491, https://doi.org/10.2307/2296698 Published: 01 October 1974

APB opinions, Disclosure quality, Funds-reporting, APB opinion No. 19

C-V-P Analysis, Cost-Value-Profit analysis, Upper boundaries

James L. Kenkel, Some Small Sample Properties of Durbin's Tests for Serial Correlation in Regression Models Containing Lagged Dependent Variables, Econometrica, Vol. 42, No. 4 (Jul., 1974), pp. 763-769

I N 1956 Gale [4] considered a general model of balanced growth and asserted the existence of price vectors which equate the economic growth with the technological growth rate. This model of Gale was an extension of fundamental results earlier proven by von Neumann for the case in which the production space was polyhedral. Recently Hulsmann and Steinmetz [6] demonstrated that Gale's theorem was not true by constructing a counterexample. In this paper we shall prove that Gale's theorem in a modified form is true and with a certain regularization the original theorem of Gale is valid. This regularization will be automatically satisfied by polyhedral production spaces so that as a corollary the proof for the polyhedral version of Gale's theorem will be attained. Finally we show that the counterexample of Hulsmann and Steinmetz [6] does not satisfy this regularization.