The research reported herein was undertaken to investigate relationships between (a) security evaluation and portfolio selection and (b) alternative inventory valuation and depreciation methods in financial reporting. First, a computer simulation model of a manufacturing firm was developed. In this simulation phase, the effects of alternative methods of financial statements and related measures (earnings per share, working capital, earnings margin, current ratio, inventory turnover, and other financial ratios along with corresponding rates of change and moving averages) were investigated under a wide range of operating conditions. In the second phase, an attempt was made to measure the effects of these accounting variations on evaluations by professional security analysts. Complete prospectuses were developed for two hypothetical companies named ETX Electronic Industries, Inc. and Rayco Electronics Corporation. Financial data for the companies were generated by the computer model. Four sets of financial reports with their related measures were generated for each company for a ten-year span. Two inventory methods (lifo and fifo) and two depreciation methods (straight-line and accelerated) were used. The four different financial reports for each company resulted m sixteen combinations of financial reports for the two companies. Participants in the study received an information packet which included an introductory letter, a return questionnaire, and one prospectus for each of the companies to be evaluated. The only variation in the in-

Wade E. Bennett, A Quantitative Analysis of the Small Business Investment Company Program: Discussion, 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. 111-119

Today great emphasis is being placed upon the need to maintain adequate supplies of money in the economy in the face of continuing balance of payments deficits. This emphasis reflects a desire to assure a. continuous high level of economic activity and low unemployment rates.

Journal Article Models of Technical Progress and the Golden Rule of Research Get access E. S. Phelps E. S. Phelps Yale University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 33, Issue 2, April 1966, Pages 133–145, https://doi.org/10.2307/2974437 Published: 01 April 1966

Journal Article Life-Cycle Savings, Inheritance and Economic Growth Get access J. E. Meade J. E. Meade Cambridge Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 33, Issue 1, January 1966, Pages 61–78, https://doi.org/10.2307/2296642 Published: 01 January 1966

Forecasting, Interim reports, Annual reports, EPS

Journal Article The Durability of Durable Goods Get access E. Kleiman, E. Kleiman The Hebrew University, Jerusalem Search for other works by this author on: Oxford Academic Google Scholar T. Ophir T. Ophir The Hebrew University, Jerusalem Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 33, Issue 2, April 1966, Pages 165–178, https://doi.org/10.2307/2974440 Published: 01 April 1966