Glenn H. Petry, Russell J. Fuller, The Geographic Distribution of Papers at the Seven Academic Finance Associations in the United States, The Journal of Financial and Quantitative Analysis, Vol. 13, No. 4, Proceedings of Thirteenth Annual Conference of the Western Finance Association, June 20-26, 1978 (Nov., 1978), pp. 785-794

Journal Article Information, Managerial Choice and Stockholder Unanimity Get access Hayne Leland Hayne Leland School of Business Administration University of California, Berkeley Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 45, Issue 3, October 1978, Pages 527–534, https://doi.org/10.2307/2297254 Published: 01 October 1978 Article history Received: 01 July 1976 Accepted: 01 June 1977 Published: 01 October 1978

We present sufficient conditions for taxable investors to be indifferent to dividends despite tax differentials in favor of capital gains (Strong Invariance Proposition). The conditions include two ‘seemingly unrelated’ provisions of the Internal Revenue Code: (1) the limitation of interest deductions to investment income received and (2) the tax-free accumulation of wealth at the before-tax interest rate on investments in life insurance. Although we use insurance for simplicity in the proof, many tax-equivalent investment vehicles now exist, notably pension funds. Our analysis suggests that the personal income tax is approaching a consumption tax with further drift likely.

Capital market equilibrium has been extensively studied in the recent past, mostly in a mean-variance framework. In a perfect capital market with riskless assets and homogenous expectations among risk-averse investors, Sharpe and Lintner have shown that the efficient set of all investors could be described by only two portfolios (or mutual funds):(1) the market portfolio(2) the riskless asset.

Reviews the book "The Accounting Hall of Fame: Profiles of Thirty-Six Members," by Thomas J. Burns and Edward N. Coffman.

The objective of this study is to provide some empirical evidence relevant to the social performance disclosure question. To provide this evidence, the investigation concentrated on ascertaining the validity of a widely stated view of some investors that a moderate to strong association exists between the investment value of a company's common shares and its social performance. This was achieved by testing for associations between a number of economic and financial indicators of investment value (profitability, size, total and systematic risk, price/earning ratio) and corporate performance on one key social issue (pollution control) in a sample of companies drawn from a pollution prone industry. Some statistically significant associations were found to exist although there was a reduction in the level of these associations over time. While generalization of these results will require further research, the findings reported are consistent with stated investors' perceptions.

Reviews the book "Auditing Symposium III: Proceedings of the 1976 Touche Ross/University of Kansas Symposium on Auditing Problems," edited by Howard F. Stettler.

Reviews the book "European Financial Reporting 3: Italy," by M.I. Stillwell.

The article presents a review of the document "Statement on Accounting Theory and Theory Acceptance," published in the 1977 issue of the journal "The Accounting Review." Beginning with the 1930's, the American Accounting Association (AAA) has endeavored to publish at least one comprehensive statement in the area of accounting theory each decade. Logistically, this enterprise has been carried out by a series of committees drawn from the Association's more prominent members. During this same period, the Committee on Accounting Procedure, the Accounting Principles Board, and the Financial Accounting Standards Board, in turn, have formally represented the much larger practicing arm of the profession in its self-regulatory determination of standards governing accounting practice. It is clearly not that membership in academia and/or the AAA has precluded one from an active role in accounting rule making, professors of accounting have regularly been called on to serve in this capacity. A more likely reason is that the AAA, through its collective membership, is, from the inside at least, viewed as being in a unique position to give advice on practical accounting theory, whether that advice is solicited or not.'

The article presents a new series designed to highlight accounting firms' publications of possible interest to academics. In recent years the largest public accounting firms have increased both the quantity and the quality of their accounting publications. Since such publications are ordinarily on topical subjects, they can be helpful to both the educator and the researcher. A Guide for Studying and Evaluating Internal Accounting Controls, published by Arthur Andersen & Co., uses five interrelated business cycles: treasury, expenditure, conversion, revenue and financial reporting, and a financial planning and control function to structure a framework based upon transactions for studying and evaluating internal control. Financial Statement Disclosure Checklist-1978 is designed to serve as a "memory jogger" for preparing and/or reviewing financial statements. Corporate Audit Committees: Policies and Practices reports the results of a survey of almost 1000 chief executive officers, internal auditors, independent CPAs, and non-officer directors and an examination of other publicly available information.