Knowledge that Transforms

Attitude research in accounting has utilized numerous methodologies to study various topics of interest. However, the substantiation of the research techniques sometimes leaves a void which obscures the results, This paper presents a model which, if followed, allows for reliability and validity tests to be conducted which provide for acceptance of the attitude scales as viable measurement and theoretical research methods. When acceptable instruments are employed, the concepts tested can then enhance the goal of theoretical advancement. The instrument-issue controversy is dealt with through a review of attitude research in accounting. Positive comments and constructive criticisms are made. The "so-what" question of construct validity is analyzed: does it really matter if accounting attitude research is undertaken ? The implication is that if the researcher does not consider the guidelines of the attitude model, the "so-what" issue may negate the potential contribution of such research.

Reviews the book "Making Accounting Decisions," by George J. Staubus.

The schedule of reinforcement refers to the frequency of dispensing the reinforcement. Should reinforcement he dispensed on a continuous schedule in which every appropriate behavior is followed by reinforcement or on a variable ratio schedule. In a variable ratio schedule the number of desired responses varies around some average ratio. The degree or magnitude of reinforcement will have to be examined in terms of individual satisfaction. It is contended that only partial or temporary satisfaction by means of available rewards will create optimal conditions for the continuous emission of the desired behavior by participants seeking rewards. Therefore, it is important that in the design of reinforcement schedules the degree of reinforcement is also properly controlled. Therefore, a variable schedule will have to be developed, according to which subunit participants are provided with reinforcement at some intervals. This will mean that costs will have to he allocated at regular intervals during a year depending upon the nature of the organization and practical difficulties involved in allocating costs.

Several commentators have examined the valuation process for property and closely held stock in estate, gift, and income tax cases in the federal courts. Examination of court determined values led many to conclude that the courts do not actually value property or closely held stock but rather serve as compromisers between the two opposing parties in litigation. The implications for tax counsel and public policy are extremely significant if this charge is supported by fact. The major purpose of this study is to demonstrate statistically that the Tax Court does not act in a manner consistent with a "compromiser model" in federal income tax valuations of property for charitable contribution purposes. A simple regression model is used to test the relationship between the Tax Court determined values and a compromise value--the arithmetic mean of taxpayer and IRS value estimates. In addition, chi-square analysis indicates that the Tax Court did not value one type of property more strictly or generously than other types.

This article focuses on the effect of the separation of ownership from control on accounting policy decisions. Theories of managerial control argue that managers in manager firms frequently will adjust the income number to minimize outside intervention in the affairs of the affairs of the corporation by stockholders. The adjustments to smooth income are frequent since the management has no significant stock holding and must therefore maintain its position by presenting the results of operations in a favorable and defensible way. The issue how much stock an individual must own before one exerts significant influence on a corporation is a matter of much controversy. The contradiction that Shu S. Liao has pointed out should not resist if an owner had absolute control of his firm in the sense that take over bids etc., would not be possible. In such firms, manipulative smoothing as a defensive mechanism would unnecessary. Firms which manipulate more often are more likely to show a negative average smoothing difference due to lack of a good smoothing vehicle than firms that manipulate less often.

Reviews the book "Accounting and Reporting Practices of Private Foundations: A Critical Evaluation," by Jack Traub.

Reviews the book "The Boundaries of the Accounting Universe: The Accounting Rules of Selection," by George H. Sorter.

Reviews the book "Three Centuries of Accounting in Massachusetts," by William Holmes, Linda H. Kistler and Louis S. Corsini.

This study examines the effect on audit staff performance of different assignment strategies. There is a review of the theoretical models and related empirical evidence for performance in a sequence of assignments, and data from 573 staff evaluation forms for two offices of large public accounting firms are analyzed. The review and analysis show some evidence that there is a lapse in performance over time for audit staff at the senior level if the seniors are assigned consecutively within a particular industry, while no lapse in performance is observed for those seniors who are rotated among assignments in different industries. These findings are generally consistent with the research findings in interference theory--a theory which attempts to explain certain kinds of verbal learning behavior.

This study examines some effects of budgetary goal characteristics of participation, clarity, feedback, evaluation, and difficulty on job-related attitudes (job satisfaction, job involvement, job tension), budget-related attitudes (attitude towards budgets, budgetary motivation), and self-rated performance (budgetary performance, cost efficiency, job performance) for 169 department managers at the plant level who have budget responsibility. The results show that budgetary participation and budget goal clarity tend to have positive and significant effects on job-related and budget-related attitudes of managers. Participation and goal clarity, furthermore, were found to have significant influence on budgetary performance of managers. High level of budget goal difficulty was found to have an adverse effect on attitudes and performance of managers. Effects of budgetary evaluation and feedback on attitudes and performance of managers, on the other hand, were found to be weak or insignificant.