I. Introduction, 87. — II. The business firm as organization, 89. — III. Control and costs, 91. — IV. Standard costs, 94. — V. Agent behavior, 98. — VI. Multiple commodity production and multiple agents — horizontal case, 103. — VII. Multiple agents — vertical case, 105. — VIII. Conclusion, 109.

I. Relation between the effects of foreign trade and the structural characteristics of the national economy, 171. — Allocation of imports, 172. — Relation between "ultimate" demand and derived output and employment, 174. — Exports as an independent variable, 175. — Dependent and secondary exports, 177. — II. Formulation in precise quantitative terms, 178. — III. Relation between exports and employment in the United States in 1939: entire exports as part of final demand, including household consumption and domestic investment, 184; demand for consumers' goods not independent, 185; net terms of trade allowed for, 186. — General observations, 186.

Abstract If a nonlinear risk premium in a conditional asset pricing model is approximated with a linear function, as is commonly done in empirical research, the fitted model is misspecified. We use a generic reduced-form model economy with moderate risk premium nonlinearity to examine the size of the resulting misspecification-induced pricing errors. Pricing errors from moderate nonlinearity can be large, and a version of a test for nonlinearity based on risk premiums rather than pricing errors has reasonable power properties after properly controlling for the size of the test. We conclude by examining the importance of moderate nonlinearity in the context of the investment-specific technology shock models of Papanikolaou (2011) and Kogan and Papanikolaou (2014).

Abstract We analyze the impact of a requirement similar to the Basel III Liquidity Coverage Ratio on the bank intermediation applying Regression Discontinuity Designs. Using a unique dataset on Dutch banks, we show that a liquidity requirement causes long-term borrowing and lending rates as well as demand for long-term interbank loans to increase. Lower levels of aggregate liquidity increase the estimated effects. Short-term borrowing and lending rates only rise during periods of lower market-wide liquidity. Further, banks do not seem able to pass on the increased funding costs in the interbank market to their private sector clients. Rather, a liquidity requirement seems to decrease banks’ interest margins.

Abstract We develop an analytical solution to the dynamic portfolio choice problem of an investor with power utility defined over wealth at a finite horizon, who faces a time-varying investment opportunity set, parameterized using a flexible vector autoregression. We apply this framework to study the horizon effects in the allocations of equity-only investors, who hold a mix of value and growth indices, and a more general investor, who also has access to Treasury bills and bonds. We find that the mean allocation of equity-only investors is heavily tilted towards value stocks at short-horizons, but the magnitude of this tilt declines dramatically with the investment horizon, implying that growth is less risky than value at long horizons. Investors with access to bills and bonds exhibit similar behavior, when value and growth tilts are computed relative to the total equity allocation of the portfolio. However, after accounting for the propensity of these investors to increase their total equity allocation as the horizon increases, the mean value tilt of the optimal allocation is shown to be positive and stable across time.

Abstract I examine whether a strategic focus on data analytics is associated with improvements in firms' internal information quality. Using textual analysis of firm disclosures to identify a data analytics strategy, I first document that firm, leadership, and operating environment characteristics are all important determinants of the decision to adopt a data analytics strategy. I next use operating and financial reporting outcomes to infer whether a data analytics strategy improves internal information quality. I find that a data analytics strategy is associated with enhanced operating efficiency, as adopting firms invest and utilize existing resources more efficiently. I also find that a data analytics strategy is associated with more accurate management forecasts. These results, collectively, are consistent with a data analytics strategy improving firms' internal information quality. Lastly, I corroborate and extend my findings with job postings data, and the results suggest that firm leadership signals their support for data analytics initiatives through disclosure.

Abstract. The long search for accounting principles has tended historically to be practice ‐and standards‐oriented. It is the author's contention that accountants might do better to think of themselves first and foremost as being involved in an intellectual discipline. Concern should be with subject matter , the nature of theory employed to handle problems dealing with that subject matter , and the methodology to be employed in verifying that theory. What has been put forward as a revolution in accounting thought in recent years may in this context come out as something more evolutionary in nature. We have: (1) useful extensions in subject matter — Information Economics and Agency Theory in particular; and (2) a sometimes healthy emphasis on and sometimes unhealthy obsession with empiricism in both macro (security market) and micro (choice decision) research. In fact, concern with both positive and normative questions, and employment of both logic and empiricism in our thinking, are essential in the study and practice of our discipline. The best of new thinking would seem to be complementary with , rather than a substitute for the best of what has gone on before. Résumé. La longue quête de «principes comptables» a été orientée historiquement vers la pratique et les normes. De l'avis de l'auteur, les comptables feraient mieux de se considérer comme œuvrant tout d'abord au sein d'une discipline intellectuelle. L'intérêt devrait porter sur le sujet , la nature de la théorie utilisée afin de prendre en charge les problèmes reliés audit sujet , et la méthodologie à être utilisée dans la vérification de cette théorie. Ce qui a été avancé dans les dernières années comme une révolution de la pensée comptable pourrait donner lieu dans ce contexte à quelque chose d'une nature plus évolutionniste. Nous possédons (1) des prolongements utiles dans le sujet — particulièrement l'économique de l'information et la théorie mandant‐mandataire; et (2) parfois une saine importance et à l'occasion une obsession malsaine de l'empirisme, accordées à la fois aux recherches de type macro (marchés financiers) et micro (décisions et choix des individus). De fait, le souci pour à la fois des questions positives et normatives, et l'utilisation dans notre réflexion à la fois de logique et d'empirisme, sont essentiels à l'étude et à la pratique de notre discipline. Les meilleurs aspects de la nouvelle pensée devraient être un complément plutôt qu'un substitut aux meilleurs aspects de l'approche antérieure.

Abstract. This study examines the association between an index of compliance with the fund model and bond risk measures. Several additional factors were posited to be associated with bond risk and to be correlated with the fund index. These variables were included in the analysis to control for possible spurious results. The results were consistent with the hypothesis that the fund accounting model provides information associated with creditor decisions. The fund index was negatively correlated with systematic and total bond risk after controlling for other factors. The index contributed marginally in explaining the variation in measures of risk for a sample of 214 cities. The results were insensitive to several alternative models that were examined but that are not reported in detail in the study. Résumé. Cette étude porte sur le lien entre un indice de conformité au modèle de comptabilité par fonds et les mesures de risque obligataire. Plusieurs facteurs étaient supposés être reliés au risque obligataire et correlés avec l'indice de fonds. Ces variables ont été incorporées à l'analyse afin de contrôler la possibilité de résultats trompeurs. Les résultats ont révélé une cohérence avec l'hypothèse voulant que le modèle de comptabilité par fonds fournisse de l'information reliée aux décisions des créanciers. L'indice de fonds était correlé négativement au risque obligataire, systématique et total, en contrôlant l'effet des autres variables. L'indice n'a pu expliquer*** la variation des mesures de risque pour un échantillon de deux cents quatorze municipalités. Les résultats n'ont pas été affectés par l'utilisation de diverses variantes de modèles qui, sans avoir été l'objet d'un compte rendu détaillé, furent examinés dans le cadre de cette étude.