Abstract This article presents the results of a recent study of a financial report that has been virtually ignored by most accountants. This report, the published interim report, has been strongly advocated by the U.S. Securities & Exchange Commission, the New York Stock Exchange and various other stock exchanges. In addition, it has been strongly demanded by financial analysts as a necessary part of systematic, orderly flows of financial information. In spite of the increased demand for such reports, many accountants of all types, both industrial, professional and academic, have either ignored or opposed them. This paper is also intended to remedy that situation somewhat. As one know, accountants and financial reports are completely interrelated. Communication of financial information is the essence of accounting. Financial reports are the obvious media of this communication and since published interim reports have become a significant part of the financial reporting practices of many corporations, accountants must take cognizance of them.

Walter Robert Lawson Taylor, The Symmetric and Asymmetric Cash Balance Model of Miller and Orr with Fixed and Variable Transfer Costs Dependent on the Direction of Transfer, The Journal of Finance, Vol. 29, No. 5 (Dec., 1974), p. 1600

Abstract ABSTRACT: This paper views the external acquisition of services as a variation of the traditional make-buy problem. A linear programming framework for external acquisition is proposed which generalizes the traditional make-buy model by incorporating the simultaneous equation relationships for reciprocal services. Using linear programming results it is possible to determine whether external acquisitions are economically attractive and in what quantity. In addition, this paper demonstrates how to use the linear programming results to compute cost allocations, even when some overhead services are purchased externally.

This paper discusses a consistent bootstrap implementation of the likelihood ratio (LR) co-integration rank test and associated sequential rank determination procedure of Johansen (1996). The bootstrap samples are constructed using the restricted parameter estimates of the underlying vector autoregressive (VAR) model that obtain under the reduced rank null hypothesis. A full asymptotic theory is provided that shows that, unlike the bootstrap procedure in Swensen (2006) where a combination of unrestricted and restricted estimates from the VAR model is used, the resulting bootstrap data are I(1) and satisfy the null co-integration rank, regardless of the true rank. This ensures that the bootstrap LR test is asymptotically correctly sized and that the probability that the bootstrap sequential procedure selects a rank smaller than the true rank converges to zero. Monte Carlo evidence suggests that our bootstrap procedures work very well in practice.