This paper compares management forecast accuracy with that of analysts' forecasts published in the Value Line investment Service. Results suggest that management forecasts published on a voluntary basis are likely to be comparatively more accurate, especially when management forecasts are published after analysts' forecasts. On an industry basis, management forecasts for chemicals and services (transportation, recreation, etc.) exhibit better performance. For utilities and banks, however, no difference in the accuracy of the two forecasts is found. No trend was detected with regard to the impact of firm size on the comparative accuracy of management forecasts.

The schedule of reinforcement refers to the frequency of dispensing the reinforcement. Should reinforcement he dispensed on a continuous schedule in which every appropriate behavior is followed by reinforcement or on a variable ratio schedule. In a variable ratio schedule the number of desired responses varies around some average ratio. The degree or magnitude of reinforcement will have to be examined in terms of individual satisfaction. It is contended that only partial or temporary satisfaction by means of available rewards will create optimal conditions for the continuous emission of the desired behavior by participants seeking rewards. Therefore, it is important that in the design of reinforcement schedules the degree of reinforcement is also properly controlled. Therefore, a variable schedule will have to be developed, according to which subunit participants are provided with reinforcement at some intervals. This will mean that costs will have to he allocated at regular intervals during a year depending upon the nature of the organization and practical difficulties involved in allocating costs.

This study examines whether disclosure of management's annual earnings forecasts provides investors with additional relevant information for their decisions. Investors' reaction is measured in terms of changes in daily stock prices. The significance of the unexpected returns resulting from forecasts is tested under the assumption of symmetric stable distribution. Buy- and sell-short strategies have been used to calculate cross-sectional averages and cumulative residuals. The findings of the study suggest that earnings forecasts are accompanied by price adjustments on the days surrounding the earnings disclosure date, implying that forecasts disclosure may cause investors to revise their expectations. These findings, however, relate to forecasts disclosed on a voluntary basis only, and do not necessarily pertain to mandatory disclosures.

This article presents the authors' views on the criticism of their article which evaluated human resource valuation models and presented a new model based on the actuarial concept of homogeneous group and Markov analysis, published in an earlier issue of the journal "The Accounting Review." It is important to note that there are two kinds of products for two K-element column vectors, namely, the scalar product and the vector product. According to the authors, it should also be noted that the scalar product of two column vectors is a column vector, but the vector product of two column vectors results in a scalar. The authors feel that a scalar product is more appropriate, and their equation is preferable to the one suggested in the criticism of their article. The accuracy of a solution depends on two components, namely, the accuracy of the model's parameters and the accuracy of the computational procedures. In the human resource valuation model, two groups of parameters used are, the rank transitional probabilities and the economic values of unit period of service. All these have to be estimated statistically.

The article informs that human resources is of importance to management as well as to outside users. Accountants are faced with the challenge of designing systems which are capable of providing accurate and reliable information about human resources. The model in this article provides a framework for determining the value of these resources. This model is based on valuation of groups rather than individuals; the term "group" refers to a homogeneous group of employees working in a firm. This group approach represents a major difference over the prior models. In this model, a Markov chain representation is used to consider the career movements of the employees within the firm and the chances of their leaving the firm before their retirement or death. The probabilities of career movement and of exit from the firm can be estimated on the basis of historical data and the Markovian chain technique. Since the pattern of movements is considered to be constant, the probabilities determined for one period are extended to future periods.

Prior studies suggest that auditors with short tenure are associated with lower earnings quality because of the lack of client-specific knowledge and/or low balling. In this study, we examine whether industry specialization of auditors and low balling affect the association between auditor tenure and earnings quality. We find that the association between shorter auditor tenure and lower earnings quality is weaker for firms audited by industry specialists compared to non-specialists. In addition, we do not find results consistent with the low balling explanation.