Abstract ABSTRACT: This study consists of a laboratory experiment that examines the income smoothing process with respect to motivation (reflected by the cost of smoothing), type of smoothing variable (real or artificial) and management structure (diverse or concentrated ownership). The results indicate that less smoothing occurs when the cost of smoothing is higher, that there is more smoothing when ownership is diverse than when ownership is not diverse, and that smoothing is greater with the use of artificial (accounting) variables than with real (transactional) variables. The data were analyzed using analysis of variance of repeated observations. All results are significant beyond the .001 level. The conclusions relating to ownership are consistent with existing literature.

Abstract Reviews the book "Quantitative Methods in Accounting," by Wayne E. Leininger.

[The primary objective of this study is to illustrate why an adequate historical inquiry should be considered an integral part of all "events" studies. We examine a recent events study that attempted to test the impact of the Securities Act of 1933. Our examination of the historical record results in three major criticisms of the author's research design: (1) lack of a control group, (2) an unsubstantiated test period, and (3) apparent misclassification of events (favorable/unfavorable/control) during the test period. We believe that these problems invalidate the conclusion that the Securities Act of 1933 had an adverse impact on stockholders' wealth.]

Abstract ABSTRACT: The primary objective of this study is to illustrate why an adequate historical inquiry should be considered an integral part of all "events" studies. We examine a recent events study that attempted to test the impact of the Securities Act of 1933. Our examination of the historical record results in three major criticisms of the author's research design: (1) lack of a control group, (2) an unsubstantiated test period, and (3) apparent misclassification of events (favorable/unfavorable/control) during the test period. We believe that these problems invalidate the conclusion that the Securities Act of 1933 had an adverse impact on stockholders' wealth.