The Effects of Restating Financial Statements for Price-Level Changes: A Reply.
In this article, the author presents a reply to the criticism of his study by researcher Thomas R. Dyckman, which discussed effects of restating financial statements for price-level changes. The author argues, that Dyckman concentrates unduly on the purported advantages of his own work, and implies that the limitations of the author and his colleagues' studies are so significant that the conclusions are somehow invalid. The author's comments are presented in various parts. First, the question of the data base used in the experiments is addressed. Second, the subjects used and related matters are discussed. In the third section, clarifications regarding his own work are provided, and misconceptions and incidental matters in the Dyckman correspondence are considered. The purpose of the research was to examine the effects of price-level adjusted financial statements on investment behavior. Given the nature of the experiment and the question being researched, a reasonably sophisticated group of subjects seemed appropriate, subjects whose background suggested an adequate understanding of accounting, the investment environment, and price-level adjustments.
- DOI
- 10.2308/tar-4492022
- Volume
- 50 (4)
- Pages
- 809-814
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref