bluuebunny/crossref_metadata_2025 huggingface dataset:
Hot and cold cognition in unmedicated depressed subjects with bipolar disorder
Authors: Roiser Jonathan P , Cannon Dara M , Gandhi Shilpa K , Tavares Joana Taylor , Erickson Kristine , Wood Suzanne , Klaver Jacqueline M , Clark Luke , Zarate Jr Carlos A , Sahakian Barbara J , Drevets Wayne C
Published: February 2009

Objectives:  Neuropsychological studies in subjects with bipolar disorder (BD) have reported deficits on a variety of cognitive measures. However, because the majority of subjects were medicated at the time of testing in previous studies, it is currently unclear whether the pattern of deficits reported is related to BD itself or to psychotropic medication. We addressed this issue by examining cognitive performance in a group of unmedicated, currently depressed subjects with BD.

Methods:  Forty‐nine unmedicated subjects who met DSM‐IV criteria for BD, depressed phase, and 55 control subjects participated in this study. Most patients were diagnosed with bipolar II disorder. Performance on emotion‐dependent, or ‘hot’, and emotion‐independent, or ‘cold’, cognitive tasks was assessed using tests from the Cambridge Neuropsychological Test Automated Battery.

Results:  The groups were well matched with respect to general intelligence and demographic variables. Deficits in the unmedicated depressed BD group were apparent on tests tapping ‘hot’ cognitive processing, for example the Cambridge Gamble task and the Probabilistic Reversal Learning task. However, other than a deficit on the Spatial Span test in the depressed BD subjects, the groups performed equivalently on most measures of ‘cold’ cognitive processing, for example visual memory, attention, and working memory.

Conclusions:  These data suggest that deficits on tests involving reward processing, short‐term spatial memory storage, and sensitivity to negative feedback in depressed BD subjects represent an effect of the illness itself and not mood‐stabilizing medication.
A ROLE FOR RHO‐KINASE IN Ca2+‐INDEPENDENT CONTRACTIONS INDUCED BY PHORBOL‐12,13‐DIBUTYRATE
Authors: Baek Inji , Jeon Su Bun , Kim Juyoung , Seok Young Mi , Song Min‐Ji , Chae Shung Chull , Jun Jae Eun , Park Wee Hyun , Kim In Kyeom
Published: February 2009

Phorbol‐12,13‐dibutyrate (PDBu) is an activator of protein kinase C (PKC) that causes contractions in both physiological salt solutions and Ca2+‐depleted solutions. In the present study, we tested the hypothesis that Rho‐kinase plays a role in Ca2+‐independent contractions induced by PDBu in vascular smooth muscles.

In Ca2+‐free solution, 0.1 and 1 µmol/L PDBu induced contraction and myosin light chain (MLC20) phosphorylation, both of which were approximately 40% of responses obtained in normal Krebs’ solution. Hydroxyfasudil (H1152; 1 µmol/L), an inhibitor of Rho‐kinase, but not ML7 (10 µmol/L), an inhibitor of myosin light chain kinase, inhibited Ca2+‐independent contractions induced by PDBu.

In Ca2+‐free solution, PDBu increased phosphorylation of myosin phosphatase targeting subunit 1 (MYPT1) and CPI‐17 (PKC‐potentiated inhibitory protein for heterotrimeric myosin light chain phosphatase of 17 kDa). This action was inhibited by H1152, with the phosphorylation of CPI‐17 almost completely abolished by 1 µmol/L Ro31‐8220, an inhibitor of PKC.

In Ca2+‐free solution, PDBu increased the amount of GTP‐RhoA (an activated form of RhoA). This increase was blocked by the PKC inhibitor Ro31‐8220, but not by the Rho kinase inhibitor H1152.

In conclusion, RhoA/Rho‐kinase plays an important role in Ca2+‐independent contractions induced by PDBu in vascular smooth muscles. The results of the present study suggest that PDBu induces Ca2+‐independent contractions by inhibiting myosin light chain phospatase (MLCP) through activation of GTP‐RhoA and subsequent phosphorylation of MYPT1 and CPI‐17.
Mean stress effects in stress‐life fatigue and the Walker equation
Authors: DOWLING N. E. , CALHOUN C. A. , ARCARI A.
Published: February 2009

Mean stress effects in finite‐life fatigue are studied for a number of sets of experimental data for steels, aluminium alloys and one titanium alloy. Specifically, the agreement with these data is examined for the Goodman, Morrow, Smith–Watson–Topper and Walker equations. The Goodman relationship is found to be highly inaccurate. Reasonable accuracy is provided by the Morrow and by the Smith–Watson–Topper equations. But the Morrow method should not be used for aluminium alloys unless the true fracture strength is employed, instead of the more usual use of the stress‐life intercept constant. The Walker equation with its adjustable fitting parameter γ gives superior results. For steels, γ is found to correlate with the ultimate tensile strength, and a linear relationship permits γ to be estimated for cases where non‐zero mean stress data are not available. Relatively high‐strength aluminium alloys have γ≈ 0.5, which corresponds with the SWT method, but higher values of γ apply for relatively low‐strength aluminium alloys. For both steels and aluminium alloys, there is a trend of decreasing γ with increasing strength, indicating an increasing sensitivity to mean stress.
Microcrack nucleation, growth, coalescence and propagation in the fatigue failure of a powder metallurgy steel
Authors: KABATOVA M. , DUDROVA E. , WRONSKI A. S.
Published: February 2009

Detailed quantitative micrographic data are presented for Stages I and II of a Powder Metallurgy Fe‐1.5Cr‐0.2Mo‐0.7C steel specimen fatigued in bending with R =−1 at 24 Hz and a stress amplitude of 312 MPa. The fatigue limit was ∼240 MPa, at which stress level no microcracks were detected in static loading. Testing was interrupted at 100 cycles and at further 29 intervals until failure after 49 900 cycles. For each arrest, surface replicas were made in the two regions where maximum stress was applied. Microcracks could nucleate below 100 cycles, when their sizes ranged from <5 to ∼20 μm. Fractographic examination identified the failure‐originating site, which was then associated with the crack system observed on the ‘last’ pre‐failure micrograph. Detailed examination of the eventual failure region showed nucleation, at various cycle intervals, of 18 microcracks, their subcritical growths, arrests and coalescences with continuing cycling to form a critical crack 2.25 mm deep. Stepwise microcrack growth was probably rapid – to the next arrest or coalescence. For each (micro)crack size stress intensity factors, Kas, were estimated and, at the end of Stage II, for the coalesced crack, Ka reached K1C, independently estimated to be ∼36 MPa m1/2.
Evaluation of window flight traps for effectiveness at monitoring dead wood‐associated beetles: the effect of ethanol lure under contrasting environmental conditions
Authors: Bouget C. , Brustel H. , Brin A. , Valladares L.
Published: February 2009

1 Subsequent to the diversity of saproxylic beetles being proposed as a management tool in forestry, more explicit knowledge about the efficiency and selective properties of beetle sampling methods is needed.

2 We compared saproxylic beetle assemblages caught by alcohol‐baited or unbaited window traps in different forest contexts. Considering that trap attractiveness depends on kairomone concentrations, we appraised whether the trap efficiency was influenced by trap environment (openness and local supply of fresh dead wood).

3 Saproxylic beetles were sampled using 48 cross‐vane window flight traps, arranged in paired designs (alcohol‐baited/unbaited), in eight ancient and eight recent gaps (open stands), and eight closed‐canopy control stands in an upland beech forest in the French Pyrenees.

4 Baited traps were more efficient than unbaited traps in terms of abundance and richness in our deciduous forests. The ethanol lure did not have any repellent effect on the individual response of saproxylic taxa.

5 The influence of local environmental conditions on trap attractiveness was observed. Openness had a significant moderate effect on species richness. Trap attractiveness was slightly reduced in the alcohol‐saturated environment of recent gaps probably due to a disruption by local fresh dead‐wood concentrations of the kairomonal response of saproxylic beetles to baited traps (‘alcohol disruption’).

6 Because the ethanol lure enhanced the probability of species detection, it may be useful in early‐warning surveillance, monitoring and control of wood borers, despite slight influences of local conditions on baited trap efficiency.
Is a solitary inguinal lymph node metastasis from adenocarcinoma of the rectum really a metastasis?
Authors: Bardia A. , Greeno E. , Miller R. , Alberts S. , Dozois E. , Haddock M. , Limburg P.
Published: February 2009

Objective  Metastatic involvement of inguinal lymph nodes (ILN) from rectal adenocarcinoma is unusual, particularly without signs of distant spread to other organ sites. By current convention, ILN involvement, including solitary involvement, is classified as metastatic disease (M). However, anecdotal reports suggest that such patients are a distinct entity and should be managed differently. The aim of this study was to gain further insight regarding this seemingly distinct patient subset.

Method  This case series provides a descriptive report of patients with rectal adenocarcinoma and solitary inguinal lymph node metastasis (SILNM).

Results  Upon retrospective review of medical records from 4480 patients with rectal adenocarcinoma seen at Mayo Clinic Rochester from 1995 to 2004, six patients (0.13%) with SILNM were identified. Three had metachronous and three had synchronous SILNM (four left sided, one right sided, and one bilateral). The mean age at SILNM diagnosis was 61.3 years, and three patients had originally stage II (and three had stage III disease). Five patients received concurrent chemo‐radiation therapy and one declined treatment. Among those with metachronous SILNM, the mean survival after diagnosis of rectal cancer was 42 months. By comparison, all three patients with synchronous SILNM were still alive after a mean duration of 40 months of follow up.

Conclusion  Solitary involvement of ILNs might represent a distinct subset of patients with metastatic rectal adenocarcinoma who have a more favourable prognosis. If confirmed by larger studies, our data suggest that alternate management algorithms might be reasonable for such patients.
INSIDER TRADING ‐ A REVIEW OF AUSTRALIAN AND UNITED STATES REGULATION
Authors: Smith Tom , Mason Harvey
Published: February 2009

This paper looks at the regulation of insider trading in the Australian and United States context. Both the common law and statutory positions are outlined and where necessary, deficiencies in the law are pointed out. Several areas of potential reform are discussed by the authors.
THE EX‐POST INTERNAL RATE OF RETURN: WHO NEEDS IT?*
Authors: Wright F. K.
Published: February 2009

The relationship between the accounting rate of return and the internal rate of return has been the subject of quite a number of articles. In many of these, it has been assumed that the ex post internal rate of return represents a desirable measure of performance, and efforts have been made to deduce its value from accounting rates of return. The present paper draws attention to some limitations of the ex post internal rate of return and throws doubt on its usefulness as a measure of performance.
A NOTE ON SOME ‘WEAK FORM’ TESTS OF CAPITAL MARKET EFFICIENCY IN NEW ZEALAND*
Authors: Emanuel David M.
Published: February 2009

This paper reports the results of some experiments designed to test the ‘weak form’ efficiency of the New Zealand Stock Market The experiments were tests of serial correlation for various lags, and runs tests. The evidence suggests that the New Zealand market, at least as reflected in those securities tested, is essentially weak‐form efficient
FIELD STUDIES IN THE ACCOUNTING CURRICULUM*
Authors: Gleeson June
Published: February 2009

This paper describes the introduction and evaluation of a field study component in the management and cost accounting subjects of two undergraduate accounting courses. The three types of participants in the field studies — organizational contacts, College staff, and students — were surveyed using questionnaire (semantic differential) and telephone interview techniques, to ascertain attitudes toward the field study. Results of the survey demonstrated strong support for the studies from all three groups of participants, and several useful suggestions for improvement were received. From these results the field study concept seems to warrant further development and evaluation.
CAPITAL RECONSTRUCTIONS: ARE THEY REALLY NECESSARY?
Authors: McDonald Bruce C.
Published: February 2009

The topic of capital reconstructions is covered in most texts on company accounting and included in most company accounting courses of study at tertiary institutions. Unfortunately, though, there exists little material on the extent of the application of the available reconstruction options, and the usefulness of these options to companies and shareholders.

This paper outlines the extent and type of the capital reconstruction schemes proposed by Australian listed companies between 1975 and 1977. Some research regarding the effectiveness of two of the options is then outlined. Finally, a call is made for research to be undertaken into the other available options to determine whether their implementation is really warranted.
PREDICTORS OF EMPLOYEE PERFORMANCE IN PROFESSIONAL ACCOUNTING FIRMS
Authors: Ferris K. R. , Nethercott L. J.
Published: February 2009

As the most important asset of a firm is its employees, it is useful to know the characteristics associated with successful job performance. This paper reports the result of an investigation which sought to examine the relationship between employee performance in professional accounting firms and a broad group of employee characteristics.
A COMBINATION TEST TECHNIQUE FOR THE AUDITING OF MINI COMPUTER BASED ACCOUNTING SYSTEMS
Authors: Williams David J. , Scorgie Michael E.
Published: February 2009

This paper describes a technique developed by the authors which will complement the tools available to auditors of minicomputer based accounting systems. The technique uses a sparse matrix drawn up by the auditor that aids the detection of illogical data composition and thereby ensures that an enterprise's transactions are recorded according to generally accepted accounting principles, government regulations and management's authorities. In addition to this combination test, a volume and frequency test are also performed. From an education viewpoint, the techniques described are simple enough to be understood, modified, and executed by educators and students with limited programming experience, and could therefore also be a worthwhile addition to present day auditing courses.
ACCOUNTING DETERMINED AND MARKET DETERMNED RISK MEASURES: SOME TESTS OF ASSOCIATION AND PREDICTIVE ABILITY
Authors: Goh P. L. , Emanuel D. M.
Published: February 2009

This paper examines the degree of association between certain measures of risk that commonly feature in the accounting literature, and the β coefficient, the risk measure given by the capital asset pricing model. Tests were applied to a subset of New Zealand listed public company securities. A weak association was found. Tests of the predictive ability of an accounting based regression model showed that its performance was inferior to other commonly assumed predictive models.
THE DETERMINATION AND USE OF INVESTMENT HURDLE RATES IN CAPITAL BUGETING: A SURVEY OF AUSTRALIAN PRACTICE*
Authors: McMahon Richard G. P.
Published: February 2009

This paper summarizes the results of a survey, conducted in 1979, which investigated Australian practice in the determination and use of investment hurdle rates, and in certain other areas of capital budgeting which impinge on hurdle rate practice. The study suggests a significant closure of the gap between theory and practice in capital budgeting in terms of the use of discounted cash flow techniques of capital project evaluation, and in terms of the use of some tools of finance such as the weighted average cost of capital. However, many developments in the determination and use of investment hurdle rates appear to have taken place at a slower rate, and it is possible that some “back‐tracking” may be required in order to improve practice.
A NOTE ON CORPORATE INVESTMENT DECISIONS AND OPTION PRICING
Authors: Brown R. L.
Published: February 2009

Using the Black‐Scholes option pricing model, numerical examples are given which illustrate the known fact that shareholders in a levered firm might reject investments which are profitable for the company as a whole and accept investments which are unprofitable for the company as a whole. Even the assumption that side‐payments are allowed can be inadequate to handle a possible succession of unprofitable projects which are acceptable to shareholders. However, existing company law attempts to provide a solution procedure. The analysis helps to explain why such law has been thought necessary.
RETURN OF CAPITAL: CASH FLOW, WEALTH TRANSFER AND INFORMATION SIGNALLING EFFECTS
Authors: Coombes Robert J. , Tress Richard B.
Published: February 2009

This paper examines the price effects of an announcement to distribute cash to shareholders via the return of capital procedure currently applying under Australian company law. The impact of such announcements on the market value of ordinary shares is analysed in terms of three hypothesised effects: the cash flow effect, the wealth transfer effect and the information signalling effect. Using data from 17 companies which announced a return of capital between 1970–1978, and applying the “comparison period” methodology, significant positive returns were observed at the time of the announcement of a return of capital. Possible explanations for this result are considered.
THE ACCURACY OF CUMULATIVE INCOME: A REPLY
Authors: Wright F. K.
Published: February 2009

The relative accuracy of cumulative accounting income increases with the length of the interval over which it is accumulated.
THE INFLATION ADJUSTMENT OF CORPORATE ACCOUNTS: THE CASE OF MONETARY ITEMS
Authors: Tippett Mark , Hodgson Allan
Published: February 2009

This paper investigates the sensitivity of the computed loss from holding monetary items to alternative numerical estimating techniques. Using data from 38 companies for the fiscal year 1980‐81, we find that estimation of the loss from holding monetary items is robust with respect to the calculating technique utilized, provided the monetary base is broadly defined. The implications of this for “market model” type studies of the impact of inflation adjustments are discussed.
ACCOUNTING POLICIES FOR EXCHANGE GAINS AND LOSSES ON LONG‐TERM MONETARY ITEMS
Authors: Eddey Peter H.
Published: February 2009

Accounting standards and exposure drafts on foreign currency translation have differed in their recommended treatment of unrealised exchange gains and losses on long‐term monetary assets and liabilities of domestic firms denominated in foreign currencies. This paper compares the immediate recognition method (U.S. and U.K.) to the defer and amortise method (Australia and Canada) with respect to their effects on net income, asset and liability measurement. Reasons why management will be concerned with the financial statement effect of exchange rate changes are advanced and these, together with the empirical analysis of the competing accounting methods, help explain the evident support the Australian corporate sector has shown for the defer and amortise method.
Decision Trees Versus Decision Tables for Audit Test Data Design: An Experimental Study*
Authors: Ip Andrew , Weber Ron
Published: February 2009

Use of test data is an important evidence collection method that auditors can employ to evaluate the authenticity, accuracy, and completeness of program processing. Nevertheless, test data design is a time‐consuming and error‐prone process. To facilitate design, two approaches advocated are the decision‐tree approach and the decision‐table approach. An experiment conducted to examine the quality of test data designs produced using both approaches showed some support for the superiority of the decision‐table approach over the decision‐tree approach. Insofar as the results obtained are problematical, however, the research needs to be replicated and extended.
Accountants' Personality Typology and Perceptions of Job‐Related Stress: An Empirical Study
Authors: Choo Freddie
Published: February 2009

This study attempts to relate accountants' perceptions of job‐related stress with their personality variables. Based on the conceptual framework of C.G. Jung's psychological personality typology, it was found that judging, thinking and sensing personality profile satisfactorily discriminates among accountants' perceptions of job‐related stress. Neither introverted nor extroverted accountants differ in their perceptions of stress.
Determinants of Financial Information Published by Private Not‐For‐Profit Organisations
Authors: Simnett Roger
Published: February 2009

This is a descriptive study examining the determinants of disclosure for Not‐for‐Profit Organisations (NFPOs). The hypothesised determinants were identified by a review of the determinants identified in other studies and by reference to agency theory. These were analysed for significance using as dependent variables accounting policies and items of financial disclosure which have been suggested for adoption or disclosure by NFPOs. It was found that six of the hypothesised determinants (gross income, number of members, the presence of a professional administrator, geographic dispersion of members, and auditing of the financial statements) were significant factors influencing disclosure. Nature of the organisation, accounting experience of the person preparing the financial statements, and use of outside credit facilities were found not to be significant determinants.
The Effect of Analysts' Adjustments in the Context of Loan Assessment
Authors: Bradbury M.E.
Published: February 2009

This paper demonstrates that improvements in the classification of loan default can arise through making simple accounting adjustments to the financial statements of small firms prior to calculation of ratios. However, the improvement in loan default classification exists only on a univariate basis. The adjustments do not increase default classification when a multivariate linear discriminant model is employed. The data base comprises commonly used financial ratios extracted from the financial statements of 40 small New Zealand businesses with manufacturing or distribution activities.
PREDICTING PRIVATE COMPANY FAILURE
Authors: McNamara Raymond P. , Cocks Neil J. , Hamilton David F.
Published: February 2009

Private company failure is a significant problem that is not fully addressed by existing research. This study develops a discriminant model from data on 107 private companies. The model predicts success and failure, based on six ratios obtained from the two immediately prior years' publicly available accounting reports. Based on a hold‐out sample of 40 companies a prediction with 85% accuracy was achieved. This prediction was made one year ahead. The model indicates that the retained earnings/total assets, total liabilities/total assets, and shareholders funds/total liabilities ratios are the three major predictors of bankruptcy. Overall the model's coefficients are, as expected, substantially different to those of public company models.
Performance in Accountancy Courses
Authors: Keef Stephen P.
Published: February 2009

This paper seeks to determine whether student performance differs in what can be termed ‘academic’ and ‘professional’ undergraduate courses. The results indicate that student performance is lower in courses that are required to meet the academic requirements of the Accountancy profession than in other courses offered by the Department. Whilst this result was to be expected, the surprising result of the study was that ACA Accountancy courses experienced higher failure rates ACA Commercial Law courses.
FINANCIAL STATEMENT USERS‘ PERCEPTIONS OF FACTORS AFFECTING THE ABILITY OF AUDITORS TO RESIST CLIENT PRESSURE IN A CONFLICT SITUATION
Authors: Lindsay Daryl
Published: February 2009

This study investigates the perceived effects of four factors on the likelihood that an auditor will acquiesce to the demands of a client when a dispute arises over a significant financial reporting issue. A repeated measures experiment was conducted using 49 security analysts and 69 bankers as subjects. Analysis of Variance results indicate that an auditor is perceived as being more likely to acquiesce to his client's demands when the accounting issue in dispute is not dealt with clearly by an accounting standard. Auditors also are viewed as being more likely to acquiesce when: (1) competition in the audit environment is aggressive; (2) the audit firm is small; and (3) the audit firm provides management consulting services to its audit client.
COVENANTS IN U.S. PUBLIC DEBT AGREEMENTS
Authors: Francis Jennifer
Published: February 2009

This study examines the covenants contained in a sample of 45 public debentures issued by U.S. corporations. A survey identified six covenants among the debt agreements. Interestingly, none of the sample debt issues included constraints on working capital, net worth or current ratios. Without exception, the covenants noted in the agreements were identical to those reported in Moody's Industrial Manual. Descriptive information on selected characteristics of the debt issues is also provided.
SOME EVIDENCE ON THE TERM STRUCTURE OF INTEREST RATES: HOW TO FIND A BLACK CAT WHEN IT'S NOT THERE
Authors: Young Ian , Fowler David
Published: February 2009

This paper is a critique of a recent Australian study of the term structure of interest rates. It argues that the tests used are likely to be biased and provides some evidence of this effect.
QUALIFIED AUDIT REPORTS, FIELD DEPENDENCE COGNITIVE STYLE, AND THEIR EFFECTS ON DECISION MAKING
Authors: Gul Ferdinand A.
Published: February 2009

This paper reports the findings of an experiment designed to investigate the effects of an unqualified versus an “except for” qualified audit report on subjects' share price estimates and the moderating role of cognitive style in this relationship. Using ANOVA experimental design, 34 subjects were administered identical financial information on a hypothetical company except that 17 subjects received a qualified auditors' opinion and the other 17 received an unqualified auditors' opinion. In addition, the subjects in each group were classified as either field dependent or field independent on the basis of their scores in the Embedded Figures Test. Results showed that the “except for” audit qualification affected share price estimates and field dependence cognitive style interacted with qualified/unqualified audit opinion to also affect subjects' share price estimates.
THE INFORMATION CONTENT AND USEFULNESS OF THE TERM STRUCTURE OF THE NEW ZEALAND BANK BILL MARKET
Authors: Yip Ying K.
Published: February 2009

This paper applies the rationality concept and expectations hypothesis to test the information efficiency of the term structure of the New Zealand bank bill market. Weekly data is collected from June 1986 to November 1988. The sample period is partitioned into two subperiods by the sharemarket crash in October 1987.

The empirical results suggest the presence of a time varying risk premium. This is reflected by the significantly positive volatility measure in the first subperiod and the significant interest rate level variable in both subperiods. The forecast errors correlate significantly with the growth in money supply and overseas interest rate variables. Factors other than market information inefficiency could be responsible for the significant correlation; namely the impact of the sharemarket crash on market perceptions about inflation expectations and the non‐simultaneous data problem in calculating the differential costs of borrowing.

Despite the rejection of the joint hypothesis, forward rates are found to have information about future spot rates beyond that contained in past spot rates, and are able to predict interest rates at least 30 days ahead.
VALUING CONTRIBUTING SHARES
Authors: Brown Robert L. , Hathaway Neville J.
Published: February 2009

Contributing shares, which are only partly paid initially, entitle the holder to a pro‐rata call on the firm's assets. Subsequent payments, if and when made, convert the contributing share into a full ordinary share. This right to convert effectively may reside with different players in various cases. The valuation of contributing shares is developed in the three cases of a fixed obligation to convert, the option to convert is held by the firm and the option to convert is under the control of the contributing shareholders themselves, such as possibly when the contributing shares are held by board members. The valuation is given in closed form solutions for an indefinite life of the contributing share.
SEASONALITY IN AUSTRALIAN SHARE PRICE INDICES BETWEEN 1936 AND 1957
Authors: Brailsford Tim , Easton Stephen
Published: February 2009

There have been a number of Australian studies which have investigated monthly equity return seasonality from 1958 to the mid‐1980s. This paper extends the Australian evidence on seasonality by examining equity returns between 1936 and 1957. The major finding of the study is that returns in January are consistently higher than returns in any other month, and that returns in February and June are consistently lower than returns in other months. There is also evidence that returns in July are higher, and in March are lower, than returns in other months. However, it is the January, February and June seasonals which are significant and these remain after taking account of seasonality in ex‐dividend days.
FURTHER EVIDENCE ON EMPIRICAL RELATIONSHIPS BETWEEN EARNINGS AND CASH FLOWS
Authors: Percy Majella , Stokes Donald J.
Published: February 2009

Recently in Australia, regulations have been proclaimed requiring companies to make cashflow disclosures in addition to earnings disclosures from 30 June 1992. This paper provides evidence on relationships between earnings and cash flow measures and in so doing examines the external validity of a U.S.A. study of these relationships by Bowen, Burgstahler and Daley [1986]. We also extend their study through an industry analysis of the relationships. Evidence is presented first that shows low correlations between traditional cash flow measures (i.e., net income plus depreciation and amortisation; and working capital from operations) and a more refined cash flow measure (with additional adjustments for changes in non‐cash current assets and current liabilities). Second, traditional cash flow measures exhibit high correlations with earnings, while the more refined cash flow measure has a lower correlation with earnings. Finally, traditional cash flow measures better predict future cash flows than models based on earnings or a more refined cash flow measure. The industry evidence, albeit on small sample sizes, shows that the results on the first two issues, but not the latter issue, are generalisable across industry categories.
THE ROLE OF TIME SERIES ANALYSIS IN STUDIES OF ACCOUNTING POLICY CHOICE: A COMMENT
Authors: Taylor Stephen
Published: February 2009

The study by Anderson and Zimmer [1992] of goodwill accounting policies uses a pooled time series experimental design. This approach can add substantially to our understanding of accounting policy choices, but not in the manner used by Anderson and Zimmer. Where accounting policy choices are believed to be independent from one period to the next, then a time series approach can greatly enhance our ability to capture the influence on such policy choices of changing circumstances, more so than a simple cross‐sectional test. Conversely, if accounting policy choices are not independent between periods, pooling over time can overstate significance levels of statistical tests. The nature of Anderson and Zimmer's data makes the impact indeterminate. However, even under an extreme assumption, pre‐regulation evidence remains significant at conventional levels.
AN INVESTIGATION OF AUDITOR JUDGMENTS OF THE EFFECT OF PRELIMINARY ANALYTICAL PROCEDURES ON THE EXTENT OF SUBSTANTIVE TESTING
Authors: Pasewark William R. , Strawser Jerry R.
Published: February 2009

A major type of substantive testing procedure performed during the audit examination are analytical procedures. The use of analytical procedures (APs) in the preliminary stages of the audit examination is required for both United States (U.S.) and international audits. Despite this requirement, neither international (International Auditing Guideline 12 and Australian Statement of Auditing Practice 17) nor U.S. (Statement on Auditing Standards No. 56) auditing standards provide guidance concerning the use of preliminary APs for specific account balances or in specific circumstances. This research represents a descriptive examination of auditor judgments concerning the use of preliminary APs in the audit engagement. Our results indicate that auditors believe that performing preliminary APs generally results in a significant reduction in the need for substantive tests of details; however, the reduction in substantive testing varied according to which APs were performed. The high levels of judgment consensus noted in this research indicate that, while specific guidance for preliminary APs has not been provided by U.S. auditing standards, it appears that firms examined in this study have developed structured approaches with respect to the use of preliminary APs. Finally, the higher level of consensus noted for the judgments of senior accountants and staff accountants compared to those of audit managers may reflect either the structured nature of the task examined in this study or the greater degree of senior and staff accountant familiarity with the use of preliminary APs.
THE EFFECT OF EDUCATION ON THE AUDIT EXPECTATION GAP
Authors: Monroe Gary S. , Woodliff David R.
Published: February 2009

This paper examines the effect of education on students' perceptions of the meaning of audit reports and the responsibilities and duties of auditors. A research instrument, utilising semantic differential scales designed to measure the messages communicated through audit reports, was administered to two groups of undergraduate students at the beginning and end of a semester and to auditors. The experimental group consisted of final year undergraduate accounting students enrolled in their first auditing unit. The control group consisted of final year undergraduate marketing students not enrolled in the auditing unit. The results of the study suggest that education may be an effective approach to narrowing or eliminating the audit expectation gap.
PREDICTING UNCERTAINTY AUDIT QUALIFICATIONS IN AUSTRALIA USING PUBLICLY AVAILABLE INFORMATION
Authors: Monroe Gary S. , Teh Seng Thiam
Published: February 2009

This research project constructed a logit model to predict “subject to” qualified audit opinions using financial statement and market variables for 1,848 audit reports for Australian companies issued from 1984 to 1988. The model provided a better goodness of fit and was more efficient than two naive strategies for predicting “subject to” audit qualifications. The model explicitly incorporated the relative costs of Type II to Type I errors to account for the auditor's asymmetrical loss function. The model was reasonably accurate when a sensitivity analysis for the relative costs of Type II and Type I errors was considered. The accuracy rates for the estimation sample ranged from 70% to 95%. An inter‐temporal holdout sample of 293 audit opinions for Australian firms issued during 1989 indicated that the model was useful for predicting “subject to” audit opinions. The accuracy rates for the holdout sample ranged from 72% to 90% over a range of relative Type II and Type I costs.
DETERMINANTS OF ACCOUNTING POLICY CHOICE IN THE AUSTRALIAN PROPERTY INDUSTRY: A PORTFOLIO APPROACH
Authors: Aitken Michael J. , Loftus Janice A.
Published: February 2009

The objective of this research is to explain accounting policy choice in the Australian property industry by reference to costly contracting theory. This paper makes three departures from the predominant literature. First, instead of focusing on a single policy choice, it focuses on a portfolio of 15 choices. Second, instead of measuring each policy choice dichotomously, it measures the dollar effect of each policy choice. Finally, the research focuses on the impact of policy choices on owners' equity as well as income. The results confirm the importance of compensation arrangements as a determinant of accounting policy choice but fail to provide evidence that debt constraints or political costs are significant determinants of accounting policy choice. These results suggest that including property firms in a more heterogeneous sample may reduce the power of tests on the debt constraints and political costs hypotheses. More generally (when compared to previous research) the results suggest that the determinants of policy choice are likely to be industry specific.
THE VALUATION OF NEW ZEALAND UNDERWRITING AGREEMENTS
Authors: MacCulloch R. J. , Emanuel D. M.
Published: February 2009

Almost all cash issues by New Zealand listed public companies are by way of a rights issue. This paper examines the terms of 143 issues between 1976 and 1984. Of those issues 86 were underwritten and 57 were not. The paper is concerned with two questions. The first question examines whether there are fundamental differences in the terms of the issues that explain why some issues were underwritten and some were not. The second question examines the extent to which the underwriters' fee corresponds to the value of a put option, where that value is given by an adaptation of the Black Scholes formula. The conclusions are that there are differences in the terms of issues that are underwritten, compared with those that are not, and that the underwriters' fee is substantially in excess of the Black Scholes put value.
AN EMPIRICAL ASSESSMENT OF THE “FIT”BETWEEN STRATEGY AND MANAGEMENT INFORMATION SYSTEM DESIGN
Authors: Abernethy Margaret A. , Guthrie Cameron H.
Published: February 2009

This paper was motivated by the limited understanding of the role of accounting vis a vis other information in supporting the needs of management. The paper reports the findings of a study which examined differences in the design parameters of management information systems in firms adopting different strategic priorities. Based on a sample of 49 business unit general managers, the findings indicate that the effectiveness of business units is dependent on a match between the design of the information system and the firm's strategic posture. Information systems which have the characteristics of a broad scope system were found to be more effective in firms employing a strategy of continuous product/market development and innovation (Prospectors) than in firms which were protecting a comparatively narrow and stable product‐market (Defenders). The results have important implications for management accountants involved in the design and implementation of management information systems, especially in firms adopting a more innovative strategic posture. In particular, the study sheds light on the role of accounting as part of the “mosaic” of information provided to managers for decision making.
THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS, EX ANTE UNCERTAINTY, AND PROXY SELECTION
Authors: Clarkson Peter M.
Published: February 2009

This paper reconsiders the prediction that the underpricing of IPOs is increasing in ex ante uncertainty by objectively establishing proxies for ex ante uncertainty on definitional grounds rather than by appealing to intuitive arguments. Based on a sample of 420 U.S. IPOs from the period 1976–1985, the results suggest that there is a hierarchy of proxies. The results also support the prediction of a positive relation between underpricing and ex ante uncertainty. Finally, the results suggest that as the effectiveness of a selected proxy as a measure of ex ante uncertainty increases, so does the strength of the relation between the degree of underpricing and ex ante uncertainty as measured by that proxy.
DIFFERENTIAL INFORMATION AND THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS: AUSTRALIAN EVIDENCE
Authors: How Janice C.Y. , Izan H.Y. , Monroe Gary S.
Published: February 2009

This paper provides evidence on underpricing in Australia using 340 industrial initial public offerings over the period 1980 to 1990. It aims to explain why underpricing is consistent with rational behaviour by focusing on differential information across IPO firms. We measure differential information along two dimensions, the quality and the quantity of information. We propose that the quality of information is reflected in the reputation of independent advisers to the preparation of the issuing firm's prospectus. Three such independent external advisers are examined: the investigating accountant, the underwriter, and the expert. The results provide strong support for the reputation effect of the underwriter on underpricing. Although there is evidence showing a negative relation between underpricing and the reputation of the investigating accountant and the expert, it is not significant. Our results also support the differential quantity of information hypothesis. Firms with more information available are, on average, less underpriced.
A DISCRETE‐VALUED RISK FUNCTION FOR MODELLING FINANCIAL DISTRESS IN PRIVATE AUSTRALIAN COMPANIES
Authors: Cybinski Patti J.
Published: February 2009

This paper emphasises the inappropriateness of continuous measure predictors for both the logit and MDA models when dealing with the measurement errors that exist in much of the private company data used to model financial distress in that sector. Also, it is argued that the step function logit model that we get as a consequence of the necessity to categorise the predictors, may be more appropriate in explaining underlying nonlinear behaviour of firms at risk than the usual continuous response linear function. Within this context, the two models are compared using data from 140 private Australian companies. A logit model based on only three discrete‐valued ratios gave an overall accuracy rate comparable to that of an existing continuous‐valued multiple discriminant analysis (MDA) model based on six ratios. Of interest is the very different order of significance of the predictor ratios in the two models although neither model remains trustworthy for predictive purposes.
THE JOINT EFFECTS OF BUDGETARY SLACK AND TASK UNCERTAINTY ON SUBUNIT PERFORMANCE
Authors: Dunk Alan S.
Published: February 2009

Even though managers may build slack into their budgets to enhance their prospects for reward, the literature proposes that there may be circumstances when budgetary slack may be utilized by subunits to provide them with a degree of flexibility in responding effectively to changes in operating conditions. This suggests that the use to which budgetary slack is put, in contrast to any dysfunctional reason for its creation, may have implications for subunit performance particularly when task uncertainty is high. A theory was developed and an empirical assessment was conducted to evaluate whether slack moderates the relation between task uncertainty and subunit performance, paying specific attention to the effects of the task difficulty and task variability dimensions of task uncertainty. The results of the study suggest that slack has a positive role to play in Influencing the relation between task difficulty and subunit performance. There was no evidence, however, that slack and task variability jointly influence performance.
RESPONSE OF FINANCIAL MARKETS TO ANNOUNCEMENTS OF THE AUSTRALIAN CURRENT ACCOUNT BALANCE
Authors: Singh Ranjit Ajit
Published: February 2009

This paper documents the response of exchange rates, interest rates and stock prices to monthly announcements of the Australian current account balance. Survey data on market participants' expectations and forecasts generated from ARIMA time series models are used to identify the unexpected component of the announcements. The study also controls for day‐of‐the‐week effects that have been documented in the Australian equity market The results support the efficient market hypothesis and show a significant depreciation of the Australian dollar in foreign exchange markets and a significant rise in both short‐ and long‐term interest rates to announcements of larger than expected current account deficits. The study was, however, unable to find evidence of a significant stock price response to the current account announcements.
WHAT MOTIVATES GOING PRIVATE?: AN ANALYSIS OF AUSTRALIAN FIRMS
Authors: Eddey Peter H. , Lee Kin Wai , Taylor Stephen L.
Published: February 2009

We investigate going private transactions in Australia between 1988 and 1991. Approximately ten percent of all takeovers during this period are instances of going private. In contrast to studies of similar transactions in the United States, we find no direct evidence to support a free cash flow explanation for going private, although going private is frequently preceded by the threat of a takeover offer. However, the free cash flow explanation for going private may not be applicable in Pacific Basin countries where exchange‐traded investment activity is in relatively high growth sectors and foreign ownership accounts for a large part of those investment sectors where managerial abuse of free cash flow has been alleged.
REGIME‐SWITCHING IN AUSTRALIAN SHORT‐TERM INTEREST RATES
Authors: Gray Stephen F.
Published: February 2009

This paper applies a generalized regime‐switching (GRS) model of the short‐term interest rate to Australian data. The model allows the short rate to exhibit both mean reversion and conditional heteroscedasticity and nests the popular generalized autoregressive conditional heteroscedasticity (GARCH) and regime‐switching specifications. It is shown that empirical estimates of many popular interest rate models provide curious results which imply that innovations to the short rate process are extremely persistent, and that the short rate is potentially non‐stationary. The source of these curious results, which are also present in US and European interest rates, is identified in the context of the GRS model, which is shown, via specification and forecasting tests, to capture the features of Australian short‐term interest rate data better than existing models. The stochastic process of short‐term interest rates in Australia is compared with evidence from the US and Europe, highlighting a number of important differences.