Segment reporting, Simulated mergers, Forecasting

This study employs an alternative stochastic model which offers important advantages over those proposed by Cohen and Pekelman, and Biddle and Martin. Rather than optimizing with respect to a single order-up-to level determined at the start of each year, the model permits a second order at year-end. This achieves greater descriptive validity by allowing intrayear (as well as interyear) cost changes and additional purchases after demand has been assessed. More important, there is a greater sensitivity to the effects of tax incentives on year-end procurement decisions and a smaller likelihood of year-end stockouts (which unrealistically affect tax incentives by drastically altering inventory cost structures). As a result, the model is uniquely suited for an examination of optimal choices among alternative inventory costing methods and the optimal ordering policies under each. In this study we extend the model to include not only LIFO and FIFO but also AC, a method not previously considered in order quantity models.

This paper develops a method for inferring from observations on a group's collective expenditure whether a cooperative or competitive resource allocation process, or some mixture of the two, has occurred. The method will be applicable to a variety of situations from small collectives such as the family or groupings of nations collaborating in security or trade alliances, to collectives with large numbers. This method will be useful for identifying (1) whether observed outcomes have been efficient, (2) whether costs have been shared equitably, (3) what is the form of collaboration or competition, and (4) what is the degree of “publicness” of the collective good.

[The objective of this study is to examine how certain contextual factors in auditor-client conflicts affect the perceived ability of auditors to resist client pressure. A review of the literature resulted in the identification of four factors hypothesized to affect sophisticated financial statement users' perceptions of audit conflict outcomes: nature of conflict issue, client's financial condition, provision of MAS by the audit firm, and the degree of competition in the audit services market. A full-factorial, repeated measures ANOVA experiment was conducted using senior loan officers as subjects. The results indicate that a client in good financial condition is perceived as being more likely to obtain its preferred outcome to an audit conflict than a client in poor financial condition. Clients are also viewed as being more likely to obtain their preferred resolution to a conflict when the conflict issue is not dealt with precisely by the technical standards.]

The objective of this study is to examine how certain contextual factors in auditor-client conflicts affect the perceived ability of auditors to resist client pressure. A review of the literature resulted in the identification of four factors hypothesized to affect sophisticated financial statement users' perceptions of audit conflict outcomes: nature of conflict issue, client's financial condition, provision of MAS by the audit firm, and the degree of competition in the audit services market. A full-factorial, repeated measures ANOVA experiment was conducted using senior loan officers as subjects. The results indicate that a client in good financial condition is perceived as being more likely to obtain its preferred outcome to an audit conflict than a client in poor financial condition. Clients are also viewed as being more likely to obtain their preferred resolution to a conflict when the conflict issue is not dealt with precisely by the technical standards.

Agency problem, Laboratory experiments, Negligence liability rule, Strict liability rule

Bruce Bublitz, Thomas J. Frecka, James C. McKeown, Market Association Tests and FASB Statement No. 33 Disclosures: A Reexamination, Journal of Accounting Research, Vol. 23, Studies on Accounting Earnings and Security Valuation: Current Research Issues (1985), pp. 1-23

C. Edward Arrington, Charles D. Bailey, William S. Hopwood, An Attribution Analysis of Responsibility Assessment for Audit Performance, Journal of Accounting Research, Vol. 23, No. 1 (Spring, 1985), pp. 1-20