Detailed comparisons of the performance of the alternative theories of corporate investment are given in Jorgenson and Siebert (1968, Tables 2, 4, and 5). 2 Equivalence between maximization of the market value of the firm and maximization of profit at each point of time is discussed by Malinvaud (1953) and, more recently, by Arrow (1964).The essential idea is implicit in Haavelmo's theory of investment (1960).II23 * Mean annual gross investment for the postwar period, 1946-1963, in billions of 1954 dollars.t End-of-year net fixed assets for 1961 in billions of 1954 dollars.

Abstract One criterion being employed by a growing body of empirical research is predictive ability. According to this criterion, alternative accounting measurements are evaluated in terms of their ability to predict events of interest to decision-makers. The measure with the greatest predictive power with respect to a given event is considered to be the best method for that particular purpose. Because the predictive ability criterion is currently being used and is likely to experience even greater use in the future, this article examines its origin, its relation-ship to the facilitation of decision-making, and the potential difficulties associated with its implementation. Knowing the origin of the predictive ability criterion is important in understanding what is meant by predictive ability and why it is being used in evaluating accounting data. The criterion is well established in the social and natural sciences as a method for choosing among competing hypotheses. The use of the predictive ability criterion presupposes that alternatives under consideration have met the tests of logic and that each has a theory supporting it.

Abstract This article highlights the report of the Committee on International Accounting Research of the American Accounting Association. The report is the result of the 1966/67 research effort of the Committee on International Accounting Research of the American Accounting Association. In carrying out its assignment the Committee felt that it would be appropriate to comment on the usefulness of the "standards" and "guidelines" contained in "A Statement of Basic Accounting Theory" as well as to appraise selected international accounting reports in the light of these standards and guidelines. For this purpose the committee decided to study a recent annual report for each of five companies from each of the following countries: Argentina; Japan; The Netherlands; Sweden; and Great Britain. While the companies included in the study collectively do a significant amount of international business, it is felt that the sample was too restricted to justify generally valid observations. The comments in this report are therefore best viewed as tentative conclusions which should be tested by more comprehensive studies before being accepted.