Jacob B. Michaelsen, The Determinates of Corporate Dividend Policies, The Journal of Financial and Quantitative Analysis, Vol. 1, No. 1, Proceedings of the First Annual Meeting of the Western Finance Association (Mar., 1966), pp. 29-29b

Economists have long been creating models by which to describe optimum behavior for firms to maximize profits. The rigor and inclusiveness of such models have increased steadily in recent years. In the field of commercial banking, however, this has not generally been the case. Concerning the topic of asset management, the typical analyst discusses the decisions to be faced by the bank manager, the reasons for the problems involved, and considerations to include in the solution of such problems. Often, specific rules-of-thumb for the handling of individual asset accounts are advocated.

T HE theoretical role of technology in economic growth is no mystery. It provides new machines and processes (improved capital quality) that raise output relative to input, or productivity. Yet for several reasons, once it comes to pursuing this truth by observation, hypothesis, and testing, every manner of obstacle seems to appear. One may be told that technology per se is rarely susceptible of measurement, that productivity increases can be attributed to many causes, impossible to untangle, or that the precise link between embodied technological change and productivity is too hazy. Such doubts are often justified. At times, however, they may unduly discourage those whose curiosity is not satisfied by aggregate production functions, and who would prefer to investigate more closely some particular reasons for productivity increases. To be clear on this point, technological innovation frequently is difficult to represent quantitatively. Output per unit of input often does rise for non-technological reasons (economies of scale, changes in rates of utilization of capacity, or optimal factor combinations), but there must be important cases where the reverse is true. One such case seems to be electrification of manufacturing industries. Here the rate of technical change can be reasonably well measured in terms of horsepower capacity of power equipment and consumption of power (work output). Furthermore, this revolution in the application of power can be viewed against the background of clear, known changes in manufacturing productivity changes which remain mostly unexplained. Specifically, it might be expected that there would be a relationship between electrification and reduced costs of production.' More broadly, the case of electrification might illustrate how the quantitative link between technological change and productivity can be developed. To this end, what follows (section I) traces some suggestive findings regarding the rise of electric power and changes in productivity in American manufacturing, and (section II) attempts to construct a theoretical framework for measuring the impact of electrical technology on factor costs. It is hoped that section II will help shed more light upon the broader question mentioned above, by providing procedures that could be adapted to a wide range of technologyproductivity cases.

Introduction: the “Schumpeterian” hypothesis, 167. — I. Oxygen steelmaking: the history of its invention and innovation, 169. — II. Some cost and profit implications of innovative lethargy, 184. — III. Conclusion, 188.

The article presents problems and their solutions prepared by the Board of Examiners of the American Institute of Certified Public Accountants, for the auditing section of the November 1965 Uniform Certified Public Accountants examination held on November 04, 1965. The first question deals with auditing procedures to be followed for auditing of a shopping center with 30 store tenants, and the preparation of an auditor's report under certain given conditions. All leases with these store tenants provide for a fixed rent plus a percentage of sales, net of sales taxes, in excess of a fixed dollar amount computed on an annual basis. Each lease also provides that the landlord may engage a certified public accountant to audit all records of the tenant for assurance that sales are being property reported to the landlord. The second question deals with the issue of auditing financial statements that have been prepared using electronic data processing equipment, and the accountant has found that his traditional audit trail has been obscured.

The article presents the method and rationale of net working capital analysis that can help accounting students understand the relationships between the balance sheet and the income statement. Regardless how complex and lengthy the problem in net working capital analysis presented, considerable time and effort will be saved by not preparing formal working papers. The method accomplishes the analysis systematically in a minimum amount of time. Further, by forcing reconciliation of each account and analysis of the items that flowed through each account, three valuable pedagogic objectives are accomplished.

The article presents questions and solutions for auditing paper of the May 1966 uniform certified public accountants examination. The examination was scheduled for May 19, 1966 from 8:30 to 12:00 noon. The first section of the examination consisted of six questions and the candidates were supposed to solve all the questions. The second section contained two questions of which the candidates were instructed to answer any one of their choice. Section 1 presents question on audit procedures. Section 2 required students to discuss, what disclosures, if any, of the sale and repurchase of the securities would the CPA recommend for the financial statements. Section 4 required students to distinguish between accounting controls and administrative controls in a properly coordinated system of internal control. It also required students to list features of a sound system of accounting control. It sought explanation about why certified public accountant is concerned about the separation of responsibilities for operating custodianship, financial custodianship, and controllership.

The article presents a survey to obtain information relative to accounting courses offered by accredited junior and community colleges in the U.S. An effort is made to secure data as to the particular courses offered, credit hours allowed therefore, whether for terminal credit only or for transfer, selective data as to their content, and finally, certain facts relative to the academic training and teaching experience of the faculty personnel teaching these courses. To accomplish this, a questionnaire was mailed to the 207 junior and community colleges listed in the 6th edition of American Junior Colleges that offer courses in accounting. Five of the colleges contacted replied that they had either become four-year institutions or were no longer offering courses in accounting, thus reducing the population to only 202 and of these, 143 completed and returned the questionnaires. The results of this survey are offered without comment, and with the hope that they will generate some interest and discussion throughout the accounting profession relative to the accounting curriculums being offered at junior and community colleges.

The article focuses on the development of accounting mechanics in an attitude natural to the computer environment. The task mentioned is undertaken by restructuring the accounting language. The new product is hereinafter referred to as the "notation." The most essential and conspicuous component of the notation is the root, which is a slight extension of the notion of a chart of accounts. The root establishes the hierarchies of a given accounting system but differs most strikingly from a chart of accounts in that its elements are not accounts. The concepts of an entry, journal, account, gross, net, and statement are derived within the root context and terminology; the meanings given to these words are very distinguishable from classical usage. The root and the directed tree of network analysis are equivalent; hence another body of knowledge can be brought to bear. The notation is suitable for use by engineers, mathematicians, etc., hence communication between accounting and related disciplines stands to be improved. And lastly, another view is offered of unit-value flow, aggregation, and statement generation.