Stewardship role, Accounting information systems, Management control, Value of information system

This paper provides a model in which audited reports are valuable to entrepreneurs who have private information and seek to share risks with investors. A distinctive feature of the model is that the choice of auditor and the resulting audited report provide partial information about the entrepreneur's private information, and he resolves all remaining investor uncertainty by signalling with retained ownership. The value of an audit is increasing in audit quality and the firm-specific risk faced by the entrepreneur and is a nondecreasing function of the entrepreneur's expectations about the future value of the firm.

Journal Article The Enforcement of Equal Opportunity Laws Under Imperfect Information: Affirmative Action and Alternatives Get access Shelly J. Lundberg Shelly J. Lundberg University of Washington Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 106, Issue 1, February 1991, Pages 309–326, https://doi.org/10.2307/2937919 Published: 01 February 1991

Formulates a stochastic dynamic model of fertility to evaluate the assumptions that underlie the widely used econometric tests for parental sex preferences. Unlike previous work on dynamic models of fertility, several tractable and testable predictions are established. It is shown rigorously that conventional econometric tests using fertility data are valid tests for sex preferences; however, they cannot separate son preference from daughter preference. The only definite conclusion that one can draw from fertility data is whether there are sex preferences. These results call into question the validity of conventional econometric tests for son preference. -Author

A recent article by Bernanke [1984] tests the rational expectations-permanent income hypothesis using panel data on automobile expenditures. He finds no evidence refuting the hypothesis. This paper incorporates a threshold adjustment process into Bernanke's model. Estimations based on a subset of the data used by Bernanke reveal evidence that resale market imperfections and credit market constraints have important effects on automobile expenditures.

We prove the general existence of steady states with positive consumption in an N goods and fiat money version of the Kiyotaki-Wright model by admitting mixed strategies. We also show that there always exists a steady state in which everyone accepts a least costly-to-store object. In particular, if fiat money is one such object, then there always exists a monetary steady state. We also establish some other properties of steady states and comment on the relationship between steady states and (incentive) feasible allocations.

This paper considers the effects of different rules regarding research and development (R&D) costs on competition in oligopolistic industries. It is shown that the consequences of those regimes on equilibrium levels of R&D spending depend on the impact of R&D on marginal costs and the risk attitudes of firm managers. Further results speak to the self‐selection of disclosure policies and the effects of those policies on social welfare. Generally speaking, the results are useful in forming predictions concerning the economic consequences of Statement of Financial Accounting Standards No. 2 and in explaining the information exchange activities of trade associations in high‐technology R&D industries. Résumé. Les auteurs analysent les conséquences de différentes règles relatives à la présentation de renseignements relatifs aux coûts de la recherche et du développement sur la concurrence dans les secteurs d'activité oligopolistiques. Ils établissent que les conséquences de la structure oligopolistique sur les niveaux d'équilibre des dépenses de recherche et de développement dépendent de l'incidence de ces activités sur les coûts marginaux et de l'attitude des cadres à l'égard du risque. Les auteurs tirent en outre des conclusions quant à l'autosélection de politiques relatives à la présentation de renseignements et aux conséquences de ces politiques sur l'intérêt de la société. Dans l'ensemble, les résultats de l'étude peuvent servir à l'élaboration de prédictions relatives aux conséquences économiques de la norme Statement of Financial Accounting Standards No. 2 et expliquer les activités d'échange d'information des associations commerciales dans les secteurs où la recherche et le développement technologiques sont importants.

Mark Penno, John S. Watts, An Independent Auditor's Ex Post Criteria for the Disclosure of Information, Journal of Accounting Research, Vol. 29, Studies on Accounting Institutions in Markets and Organizations (1991), pp. 194-212