Abstract Reexamines the `uniformity versus flexibility' debate by considering the consequences of varying the amount of discretion managers have in reporting current period expenses. Effects of generally accepted accounting principles (GAAP) on the `internal agency problem' and the `external agency problem'; Exhibition of the undesirability of expanding discretion.
Abstract Examines empirically the prediction of long-term stock return volatility. Using historical volatility to predict five-year monthly volatility; Constructing a forecast based on historical volatilities of comparable films; Forming a shrinkage forecast by adjusting a historical forecast toward a comparable-firms forecast.
Abstract Examines the empirical association between trading volume and belief revisions that differ among individual analysts. Hypothesis based on relative positions of individual analysts' current and prior forecasts of earnings to measure differential belief revisions.
Abstract Examines the impact of product mix heterogeneity (PMH) on manufacturing overhead costs (MOHC) in three plants of a textile firm. Adaption of an approach for measuring PMH; Identification of seven forms of PMH for woven fabrics; Difficulties in establishing the relationship between variable MOHC and PMH using time series data.
Abstract Investigates the frequency with which accounting earnings announcements generate differential price and volume reactions. Assessment of the association between the differential reactions and announcement-specific characteristics; Relationship between the magnitude of price and volume reactions.
Abstract Focuses on executive bonus plans and accounting trade-offs in the oil and gas industry during the years 1985-86. Executive bonuses of firms switching to the successful efforts method; Firms that opted for write-down method.
Abstract Looks at the effect of imperfect competition in audit markets on the demand for audit-related services. Switching costs; Effect on structure of audit engagement structure and client-auditor relationship; Audit pricing; Low-balling; Auditor switching.
Abstract Explores a possible explanation for the observed use of bonus pool arrangements. Model illustrating optimal bonus arrangement; Use of non-contractible information.
The Accounting Review199570(2), 337-353open access
Abstract Examines whether the consequences arising from renegotiation of lending agreements are priced in the market. Technical default; Wealth losses from higher costs of borrowing and restrictions on firms' opportunities; Stock price declines; Debt covenant violation.