David J. Cherrington, J. Owen Cherrington, Appropriate Reinforcement Contingencies in the Budgeting Process, Journal of Accounting Research, Vol. 11, Empirical Research in Accounting: Selected Studies 1973 (1973), pp. 225-253

Philip J. Harmelink, An Empirical Examination of the Predictive Ability of Alternate Sets of Insurance Company Accounting Data, Journal of Accounting Research, Vol. 11, No. 1 (Spring, 1973), pp. 146-158

Statistical models for accounting numbers, particularly income-related numbers, have attracted considerable interest. Some reasons for this interest are: (1) the potential use of forecasts of accounting numbers as inputs to decision models; (2) the need to secure proxies for unobservable expectations in order to test economic theories; (3) the need to use such statistical models within the context of studies dealing with the predictive ability or information content of accounting numbers, subjects that have been receiving increased attention during the past few years;' (4) the growing interest in examining the forecasting success of, for example, managers and financial analysts relative to statistical models that are appropriate for the accounting number series of interest;2 and (5) the need to use accounting numbers in testing hypotheses regarding industrial organization (e.g., market concentration), profitability,3 and the growth and decline of firms.4 The interest in statistical models for accounting numbers obviously induces a need for model-formulation efforts and empirical results regarding the properties of alternative statistical models. If, in fact, a statistical model used in a given study suffers from important misspecifications or if

John B. Shoven, John Whalley; General Equilibrium with Taxes: A Computational Procedure and an Existence Proof12, The Review of Economic Studies, Volume 40, Iss

Journal Article Some Implications of the Permanent-Income Hypothesis Get access Roger J. Bowden Roger J. Bowden University of Auckland Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 40, Issue 1, January 1973, Pages 33–37, https://doi.org/10.2307/2296737 Published: 01 January 1973

Journal Article The Portfolio Balance Theory of the Expected Rate of Change of Prices: Comment Get access James H. Scott, Jr. James H. Scott, Jr. University of Wisconsin-Milwaukee Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 40, Issue 4, October 1973, Pages 579–580, https://doi.org/10.2307/2296591 Published: 01 October 1973

Journal Article Delivery Lags and the Demand for Investment Get access Louis J. Maccini Louis J. Maccini The Johns Hopkins University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 40, Issue 2, April 1973, Pages 269–281, https://doi.org/10.2307/2296653 Published: 01 April 1973

Professor Stevens has attempted to determine whether or not a consistent financial basis for merger exists as measured by premerger financial characteristics of the acquired firms. He suggests that results of his study are useful in identifying merger motives and in relating such motives to a general framework for analysis of merger movements.

There exists a relatively large body of evidence that is consistent with the proposition that the market for securities (in particular, the New York Stock Exchange) is an efficient market in the sense that market prices react instantaneously and unbiasedly to new information and, therefore, market prices fully reflect all publicly available information. To what extent do accounting numbers reflect the kinds of information reflected in market prices? One might not, of course, expect accounting numbers to reflect all events reflected in current market prices. For example, if an economically significant piece of legislation is under discussion in, say, the United States Senate, then the expected effects (if any) of this legislation may be impounded in current market prices. One should not, however, expect these effects (if any) to be reflected in currently issued accounting numbers because of the nature of accepted accounting procedures. Yet, in general, over a period of time, there may be a systematic correspondence between some types of events reflected in market prices and accounting numbers. That is, over time, there may be a correlation between the information impounded in market prices and that impounded in accounting numbers.