Knowledge that Transforms

Auditing, Auditor Judgment, Dilution effect, Non diagnostic information

Auditing, Auditor Judgment, Dilution effect, Accountability

Auditing, Performance evaluation, Decision justifiability, Auditor expertise

Peter Miller, Ted O'Leary, Capital Budgeting Practices and Complementarity Relations in the Transition to Modern Manufacture: A Field-Based Analysis, Journal of Accounting Research, Vol. 35, No. 2 (Autumn, 1997), pp. 257-271

Jane F. Mutchler, William Hopwood, James M. McKeown, The Influence of Contrary Information and Mitigating Factors on Audit Opinion Decisions on Bankrupt Companies, Journal of Accounting Research, Vol. 35, No. 2 (Autumn, 1997), pp. 295-310

Laureen A. Maines, Linda S. McDaniel, Mary S. Harris, Implications of Proposed Segment Reporting Standards for Financial Analysts' Investment Judgements, Journal of Accounting Research, Vol. 35, Studies on Experts and the Application of Expertise in Accounting, Auditing, and Tax (1997), pp. 1-24

Arthur Lewbel, Constructing Instruments for Regressions With Measurement Error When no Additional Data are Available, with An Application to Patents and R&D, Econometrica, Vol. 65, No. 5 (Sep., 1997), pp. 1201-1213

The authors examine core convergence for economies with a large finite number of agents and an infinite number of commodities. They find a serious disconnection between economies with a large finite number of agents and economies with a continuum of agents: the authors provide examples of nonconvergence of the core for large finite economies in L[superscript 1], a commodity space for which core equivalence holds for continuum economies. In addition, they show that, if preferences exhibit uniformly vanishing marginal utility of consumption at infinity, core convergence is restored.

This paper reports a laboratory experiment that examines price formation in the single call market. The experiment design is intended to enhance the predictive power of the Bayesian Nash equilibrium (BNE) theory for this trading institution. The data support several qualitative implications of the BNE, especially when subjects compete against Nash 'robot' opponents, but subjects' behavior is not as responsive to changes in the pricing rule as the BNE predictions. Offers tend to reveal more of the underlying values and costs than predicted, particularly when subjects are experienced. A simple learning model accounts for several of the deviations from BNE.

The author considers the problem of estimation in a panel data sample selection model, where both the selection and the regression equation of interest contain unobservable individual-specific effects. He proposes a two-step estimation procedure, which 'differences out' the sample selection effect and the unobservable individual effect from the equation of interest. In the first step, the unknown coefficients of the 'selection' equation are consistently estimated. The estimates are then used to estimate the regression equation of interest. The estimator proposed in this paper is shown to be consistent and asymptotically normal. The proposed estimator is shown to be consistent and asymptotically normal. Its finite sample properties are investigated in a small Monte Carlo simulation.