bluuebunny/crossref_metadata_2025 huggingface dataset:
Direct (Re)Meshing for Efficient Surface Processing
Authors: Schreiner John , Scheidegger Carlos E. , Fleishman Shachar , Silva Cláudio T.
Published: December 2006

We propose a novel surface remeshing algorithm. While many remeshing algorithms are based on global parametrization or local mesh optimization, our algorithm is closely related to surface reconstruction techniques and it requires no explicit parameterization. Our approach is based on the advancing‐front paradigm, and it can be used to both incrementally remesh the complete surface, or simply to remesh a portion of it with a high‐quality mesh. It is accurate, fast, robust, and suitable for use with interactive mesh processing applications that require local remeshing. We show a number of applications, including matching the resolution of meshes when doing Boolean operations such as unions and intersections. We also show how to adapt the algorithm to blend and merge mixed‐mode objects — for example, to compute the union of a point‐set surface and a triangle mesh.
Computing discrete shape operators on general meshes
Authors: Grinspun Eitan , Gingold Yotam , Reisman Jason , Zorin Denis
Published: December 2006

Discrete curvature and shape operators, which capture complete information about directional curvatures at a point, are essential in a variety of applications: simulation of deformable two‐dimensional objects, variational modeling and geometric data processing. In many of these applications, objects are represented by meshes. Currently, a spectrum of approaches for formulating curvature operators for meshes exists, ranging from highly accurate but computationally expensive methods used in engineering applications to efficient but less accurate techniques popular in simulation for computer graphics.

We propose a simple and efficient formulation for the shape operator for variational problems on general meshes, using degrees of freedom associated with normals. On the one hand, it is similar in its simplicity to some of the discrete curvature operators commonly used in graphics; on the other hand, it passes a number of important convergence tests and produces consistent results for different types of meshes and mesh refinement.
Opacity Peeling for Direct Volume Rendering
Authors: Rezk‐Salama Christof , Kolb Andreas
Published: December 2006

The most important technique to visualize 3D scalar data, as they arise e.g. in medicine from tomographic measurement, is direct volume rendering. A transfer function maps the scalar values to optical properties which are used to solve the integral of light transport in participating media. Many medical data sets, especially MRI data, however, are difficult to visualize due to different tissue types being represented by the same scalar value. The main problem is that interesting structures will be occluded by less important structures because they share the same range of data values. Occlusion, however, is a view‐dependent problem and cannot be solved easily by transfer function design. This paper proposes a new method to display different entities inside the volume data in a single rendering pass. The proposed opacity peeling technique reveals structures in the data set that cannot be visualized directly by one‐or multi‐dimensional transfer functions without explicit segmentation. We also demonstrate real‐time implementations using texture mapping and multiple render targets.

Categories and Subject Descriptors (according to ACM CCS): I.3.7 [Computer Graphics]: Three‐Dimensional Graphics and Realism
Virtual Garments: A Fully Geometric Approach for Clothing Design
Authors: Decaudin Philippe , Julius Dan , Wither Jamie , Boissieux Laurence , Sheffer Alla , Cani Marie‐Paule
Published: December 2006

Modeling dressed characters is known as a very tedious process. It usually requires specifying 2D fabric patterns, positioning and assembling the min 3D, and then performing a physically‐based simulation. The latter accounts for gravity and collisions to compute the rest shape of the garment, with the adequate folds and wrinkles.

This paper presents a more intuitive way to design virtual clothing. We start with a 2D sketching system in which the user draws the contours and seam‐lines of the garment directly on a virtual mannequin. Our system then converts the sketch into an initial 3D surface using an existing method based on a precomputed distance field around the mannequin. The system then splits the created surface into different panels delimited by the seam‐lines. The generated panels are typically not developable. However, the panels of a realistic garment must be developable, since each panel must unfold into a 2D sewing pattern. Therefore our system automatically approximates each panel with a developable surface, while keeping them assembled along the seams. This process allows us to output the corresponding sewing patterns.

The last step of our method computes a natural rest shape for the 3D garment, including the folds due to the collisions with the body and gravity. The folds are generated using procedural modeling of the buckling phenomena observed in real fabric. The result of our algorithm consists of a realistic looking 3D mannequin dressed in the designed garment and the 2D patterns which can be used for distortion free texture mapping. The patterns we create also allow us to sew real replicas of the virtual garments.

Keywords:Geometric modeling of garments, developable surfaces, procedural models, buckling.

Categories and Subject Descriptors (according to ACM CCS): I.3.5 [Computing Methodologies/Computer Graphics]: Surface representations, I.3.7 [Computing Methodologies/Computer Graphics]: Three‐dimensional graphics and realism
Stroke Pattern Analysis and Synthesis
Authors: Barla Pascal , Breslav Simon , Thollot Joëlle , Sillion François , Markosian Lee
Published: December 2006

We present a synthesis technique that can automatically generate stroke patterns based on a user‐specified reference pattern. Our method is an extension of texture synthesis techniques to vector‐based patterns. Such an extension requires (a) an analysis of the pattern properties to extract meaningful pattern elements (defined as clusters of strokes) and (b) a synthesis algorithm based on similarities in the detected stroke clusters. Our method is based on results from human vision research concerning perceptual organization. The resulting synthesized patterns effectively reproduce the properties of the input patterns, and can be used to fill both 1D paths and 2D regions.

Categories and Subject Descriptors (according to ACM CCS): I.3.7 [Computer Graphics]: Color, shading, shadowing, and texture I.3.4 [Computer Graphics]: Paint systems
Pose Controlled Physically Based Motion
Authors: Fattal Raanan , Lischinski Dani
Published: December 2006

In this paper we describe a new method for generating and controlling physically‐based motion of complex articulated characters. Our goal is to create motion from scratch, where the animator provides a small amount of input and gets in return a highly detailed and physically plausible motion. Our method relieves the animator from the burden of enforcing physical plausibility, but at the same time provides full control over the internal DOFs of the articulated character via a familiar interface. Control over the global DOFs is also provided by supporting kinematic constraints. Unconstrained portions of the motion are generated in real time, since the character is driven by joint torques generated by simple feedback controllers. Although kinematic constraints are satisfied using an iterative search (shooting), this process is typically inexpensive, since it only adjusts a few DOFs at a few time instances. The low expense of the optimization, combined with the ability to generate unconstrained motions in real time yields an efficient and practical tool, which is particularly attractive for high inertia motions with a relatively small number of kinematic constraints.
Physically Based Deformable Models in Computer Graphics
Authors: Nealen Andrew , Müller Matthias , Keiser Richard , Boxerman Eddy , Carlson Mark
Published: December 2006

Physically based deformable models have been widely embraced by the Computer Graphics community. Many problems outlined in a previous survey by Gibson and Mirtich have been addressed, thereby making these models interesting and useful for both offline and real‐time applications, such as motion pictures and video games. In this paper, we present the most significant contributions of the past decade, which produce such impressive and perceivably realistic animations and simulations: finite element/difference/volume methods, mass‐spring systems, mesh‐free methods, coupled particle systems and reduced deformable models‐based on modal analysis. For completeness, we also make a connection to the simulation of other continua, such as fluids, gases and melting objects. Since time integration is inherent to all simulated phenomena, the general notion of time discretization is treated separately, while specifics are left to the respective models. Finally, we discuss areas of application, such as elastoplastic deformation and fracture, cloth and hair animation, virtual surgery simulation, interactive entertainment and fluid/smoke animation, and also suggest areas for future research.
“Rethinking” the Preface of the Tractatus
Authors: Howes Bruce
Published: December 2006

This paper is principally a re‐evaluation of the meaning of Denken in the puzzling third paragraph of the Preface to Wittgenstein's Tractatus. It shows that there is a uniform misreading of this paragraph throughout the literature and suggests a corrected reading and some of its implications. The paper asserts that the influential “New Wittgenstein” reading of the Preface as containing Wittgenstein's all important “framing” thoughts on the Tractatus, is correct. However it also argues that the anti‐metaphysical reading the New view draws by way of its frame thesis is incorrect since it is still premised on the incorrect reading of the Preface's third paragraph. With the correct reading of the third paragraph, the paper shows the anti‐metaphysical reading of the Tractatus lacks substantive support.
Reliabilism, Proper Function, and Serendipitous Malfunction
Authors: Bardon Adrian
Published: December 2006

Alvin Plantinga's externalist analysis of epistemic warrant centres on the proper function of the relevant belief‐forming mechanism, where proper function is fixed relative to the design plan of the organism in question. He has set this analysis against reliabilism, the other leading externalist contender for the analysis of warrant. Though Plantinga's discussion advances the field of epistemology in a number of important ways, his treatment of warrant is limited by his assumption of creationism in his understanding of design and function. Further, analyses of epistemic warrant focusing on function over reliability either fail at handling problem cases reliabilism can handle, or fail to improve on problem cases for reliabilism. Thus no proper functionalist analysis like Plantinga's can supersede a well‐constructed reliabilist analysis.
A Sequential Analysis of Large‐Scale Investment Projects
Authors: FLAVELL R. B. , SALKIN G. R.
Published: December 2006

Typically the evaluation of a large capital project may take a number of years, during which time information is being continually received from a variety of sources. This paper describes an analysis procedure that recognizes the sequential nature of the information and uses it to construct a simple decision model as an aid to the evaluation. The application of this method to a large mining project is described with the conclusion that the evaluation process could have been reduced by a third.
The Cost of Capital and the Relevance of Non‐diversifiable Risk
Authors: KEANE SIMON M.
Published: December 2006

The conventional solutions to the corporate investment decision have been seriously challenged by recent developments in portfolio theory. In this paper, the author argues that, assuming the security market is composed of efficient diversifiers, there is no need, in the evaluation of investment projects, to adjust the time value of money to take account of risk. He concludes that the appropriate cut‐off rate for any investment is equal to the yield on a ‘risk‐free’ security such as undated or long‐dated Government Stock.
An Analysis of the Interrelationships Among the Major World Stock Exchanges
Authors: MAKRIDAKIS SPYROS G. , WHEELWRIGHT STEVEN C.
Published: December 2006

The method of principal component is used in this paper to analyse the interrelationship among the world's major stock exchanges. The major finding is that the interrelationship is unstable over time. This finding proves that any ex ante prediction of price indices is impossible, and it suggests that the indices of world equity markets can move in a random walk fashion. The consequences to international portfolio diversification should be obvious.
Benefit‐Cost Ratios Versus Net Present Value: Revisited
Authors: HOSKINS C. G.
Published: December 2006

This paper extends the rigorous examination and comparison, begun by Schwab and Lusztig, of the ranking characteristics of Benefit‐Cost Ratios and Net Present Value. The algebraic analysis shows the circumstances under which these evaluation techniques give a contradictory ranking of investment projects and identifies the differing implicity reinvestment assumptions; the validity of these assumptions is examined. There is still dispute concerning which technique is preferable under uncertainty and which under capital rationing; this paper attempts to resolve these issues.
Adjustment to Future Dividend Rates in the Prediction of Ex‐rights Prices
Authors: WESTON C. R.
Published: December 2006

This paper seeks to expand upon an aspect of rights issues investigated by Merrett, Howe and Newbould in Equity Issues and the London Capital Market, of the prediction of the ex‐rights price. It is suggested on the basis of an Australian sample that the London results are sustained, but that varying the assumptions made we are able to extend our knowledge of the adjustment of share prices to the new information which becomes available in relation to rights issues. This study supports the opinion that the market is comparatively efficient in its assessment of ex‐rights prices.
Accounting Rate of Return vs. Economic Rate of Return
Authors: GORDON LAWRENCE A.
Published: December 2006

The accounting rate of return (ARR) has traditionally been used as a surrogate for the economic rate of return (IRR) in evaluating the effectiveness of managements’ capital investment decisions. Over the years, some question has been raised as to the validity of using the ARR as an approximation of the IRR. Several papers have recently come to grips with this question with varying degrees of success. This paper is intended to expose the conceptual differences between these rates of return, with the goal of clearly pointing out just how useful the ARR can be to management.
Disequilibrium Structures and Financing Decisions in the Firm
Authors: VICKERS DOUGLAS
Published: December 2006

The business firm confronts interdependent decision problems in production, investment, and finance. Emphasis is here placed on the firm's decision criteria in disequilibrium situations or at infra‐optimum structural planning and decision points. The operative cost of capital is shown to be ‘the full marginal cost of relaxing the money capital availability constraint’. The popular ‘weighted average cost of capital’ is shown to be an ‘equilibrium datum’ which has operative significance only at optimum structural positions. It does not offer adequate guidance to financing and investment decisions in disequilibrium situations.
Optimal Financial Structure, Cost of Capital, and the Lease‐or‐Buy Decision
Authors: KELLER THOMAS F. , PETERSEN RUSSELL J.
Published: December 2006

This note comments on the doubtful application of an economic concept of personal income to the non‐personal business enterprise situation.

This paper presents a series of models which we believe properly reflect the relevant relationships in the lease or buy evaluation. The models present the proper cash flow variables for such an analysis and they present the impact on asset net present value of cost of capital and market risk assessment. Finally, the models reflect the simultaneous effect on asset and financial structure of the acceptance of a particular investment opportunity.
Dividend Policy and Market Valuation in British Industry
Authors: RYAN TERENCE M.
Published: December 2006

The objectives of the article are: firstly, to identify the principal factors which determine interfirm variation in dividend policy within the UK; and secondly, to examine the effect of dividend policy on company stock‐market valuation. This cross‐section empirical study is based on a random sample of 60 publiclyquoted British companies, and refers to the year 1970.

The Lintner (1956) model is rejected, in that capital requirements and earnings risk are seen to play an important part in determining dividend policy. The ‘dividend neutrality’ hypothesis is strongly rejected once risk and profitability‐of‐retained‐earnings are taken into account.
The Cost of Equity Capital—a Comment
Authors: HEMSTED J. R.
Published: December 2006

An algebraic relationship is developed linking the expected long‐term yield to an investor with the company's expected internal rate of return on its equity assets. Assuming that the market normally ranks shares by expected yield, allowing where necessary for a risk premium, it is shown that the cost of equity capital must be the company's expected internal rate of return.
The Development of the Capital Structure of German Companies*
Authors: ALBACH PROFESSOR HORST
Published: December 2006

The capital structure of Federal German companies has developed in a noteworthy fashion in the last twenty years, but incentive to undertake investments is declining in the face of a falling return on equity capital, and the possibilities for investment financing are becoming narrower. If the trend of the last few years continues, serious difficulties may arise in the financing of company growth. This paper attempts to measure the development of the capital structure, financial structure, and financial strength of German companies by means of various indices.

Durant les vingt dernières années, la structure financière des sociétés de l'Allemagne fédérale s'est développée de façon remarquable, mais l'encouragement aux investissements s'affaiblit devant la baisse de rentabilité des capitaux propres, et les possibilités concernant le financement des investissements deviennent plus limitées. Si la tendance des quelques dernières années persiste, cela risque d'entraîner de sérieuses difficultés dans le financement visant à l'essor des entreprises. Ce papier tente àévaluer, au moyen de divers indices, le développement qu'a subi la structure financière, et la résistance financière des sociétés allemandes.

Die Kapitalstruktur der deutschen Aktiengesellschaften hat sich in den letzten zwanzig Jahren in bemerkenswerter Weise entwickelt. Die Bilanzanylse zeigt, dass nicht nur der Anreiz Investitionen zu tätigen angesichts sinkender Verzinsung des Eigenkapitals abnimmt, sondern dass auch die Moglichkeiten, Investitionen zu finanzieren, immer mehr eingeengt werden. Wenn sich der Trend der letzten Jahre fortsetzt, muss mit ernsten Finanzierungsschwierigkeiten für das Wachstum der Unternehmen in der Bundesrepublik Deutschland gerechnet werden. Dieser Beitrag will die Entwicklung der Kapitalstruktur deutscher Unternehmen an Hand einiger Kennzahlen sichtbar machen. Die Zahlen über die Kapitalstruktur werden um Kennzahlen der Finanzstruktur und der Finanzkraft ergänzt.
Portfolio Performance with Lending or Borrowing
Authors: MATULICH SERGE
Published: December 2006

The availability of a single riskless lending and borrowing interest rate is one of the underlying assumptions of the two‐parameter efficient markets model. When the model is used to evaluate ex‐post portfolio performance this assumption becomes too restrictive. For investors facing a borrowing rate which is higher than the lending rate, performance evaluation must take into account investment goals. It is also necessary to recognize that investors willing to assume high risk in order to obtain high returns have available a number of alternative portfolios which are efficient.

La disponibilité d'un simple taux d'intérêt sur prêt ou emprunt, tout risque exclu, est une des hypothèses fondamentales du modèle des marchés actifs à deux paramètres. Lorsque le modèle sert àévaluer le rendement expost de portefeuille, cette hypothèse s'avère trop limitée. Dans le cas où les investisseurs se trouvent face à un taux d'emprunt supérieur au taux de prêt, l'évaluation du rendement doit s'effectuer en considbration des objectifs d'investissements. II faut de même préciser que les investisseurs, prêts à edosser de grands risques dans le but d'obtenir des bényéfices élevés, possèdent un nombre disponible de portefeuilles alternatifs qui sont productifs.

Das Vorhandensein eines einzigen risikofreien Anlage‐ und Aufnahmezinssatzes stellt eine der grundsätzlichen Voraussetzungen des zweiparameterischen Effizientmarkt‐Modells dar. Bei der Verwendung des Modells für die Ermittlung der ex post Portefeuilleleistung wird diese Voraussetzung zu einschränkend. Für Anleger, die einen Aufnahmezinssatz, der den Anlagezinssatz überschreitet, bezahlen müssen, muss die Leistungsermittlung Investitionsziele berücksichtigen. Ebenfalls muss berücksichtigt werden, dass Anleger, die hohe Risiken eingehen um hohe Erträge zu erreichen, über eine Anzahl von alternativen effizienten Portefeuillen verfügen.
The Contribution of Fisher to Enterprise Income Theory: A Comment
Authors: LEE T. A.
Published: December 2006

Income is indeed a will‐o'‐the‐wisp. One of its modem founding fathers was Irving Fisher, who emphasized the psychic experience of consumption. This paper discusses some aspects of Fisher's contribution to the continuipg debate on the elusive concept of income.

Le revenu est un vrai feu follet. Un de ses fondateurs actuels fut Irving Fisher qui fit valoir l'aspect psychique de la consommation. Ce papier examine certains aspects de l'intervention de Fisher dans les débats incessants dirigés sur I'insaisissable concept du revenu.

Das Ertragskonzept ist allerdings ein Irrlicht. Einer seiner modernen Stamniväter war Irving Fisher, der die pschische Erfahrung yon Verbrauch zum Ausdruck brachte. Diese Abhandlung besprict einige Aspekte des Fisher‐Beitrages zur fortdauernden Debatte uber das schwer erfassbare Ertragskonzept.
The Cost of Equity Capital—A Reply
Authors: GRINYER JOHN R.
Published: December 2006

Hemsted (JBFA I, 3) claimed that the expected internal rate of return, and not the shareholders' opportunity cost, is the ‘cost of equity’. This paper shows, using his assumed objective of maximization of share price and chosen (Gordon Shapiro) share valuation model, that his claims are unfounded, and that, under specified assumptions, the shareholders' opportunity cost is the required criterion rate.

Selon Hemsted c'est le taux de rendement interne, et non pas le coût d'opportunitk des actionnaires, qui est le coût des capitaux propres. S1 appuyant sur ce prétendu objectif de maximation de la valeur d'une action et optant sur le modèle d'évaluation d'une action de Gordon Shapiro, ce papier montre que ce qu áffirme Hemsted est sans fondement, et que, selon des hypotheses determinées le coût d'opportunité des actionnaires est le coût fondamental requis.

Hemsted (JBFA I, 3) behauptete, dass der erwartete interne Zinsfuss und nicht die Aktionärsopportunitätskosten die Eigenkapitalkosten darstellt. Dieser Beitrag zeigt, dass mit Anlehnung an seine vorausgesetzte Aktienkursmaximierungszielfunktion und sein ausgewahltes (Gordon Shapiro) Aktienbewertungsmodell, diese Behauptungen unbegründet sind. Unter bestimmten Voraussetzungen stellen die Aktionärsopportunitatskosten die Eigenkapitalkosten dar.
The Valuation of Stock Warrants: A Reply
Authors: BIRD A. P.
Published: December 2006

The warrant model is shown to be serviceable for practical purposes, and some of Skerratt's criticisms are shown to be wrong. Nevertheless, there is scope for further work on the model, both on some of the points Skerratt has raised and in other areas.

On définit le modèle concernant le warrant comme étant destinéà des fonctions pratiques et on met en évidence certaines des critiques apportées par Skerratt qui semblent ma1 fondées. II faut toutefois ajouter qu'une etude plus approfondie du modele est entreprise, celle‐ci s'appuyant à la fois sur certains points soulevés par Skerratt et sur d'autres critères.
A NOTE ON THE SUPERIORITY OF LEVERED SHARES UNDER THE POSITIVE NPV RULE
Authors: KEANE SIMON M.
Published: December 2006

The purpose of this note is to demonstrate that under the market conditions upon which the validity of the positive NPV rule in capital budgeting depends, levered shares will on average out‐perform unlevered shares to a degree which more than compensates for the additional risk.

Dans ce papier, on démontre que ‐ dans les conditions du marché dont dépend la validité du principe de la valeur actuelle nette relative aubudget en capital ‐ les titres sujets au leverage donneront en moyenne de meilleurs rendements que ceux qui ne le sont pas, couvrant ainsi largement le risque supplémentaire.

Der Zweck dieser Amerkung ist es zu zeigen, dass unter den Marktbedingungen, mvon die Gültigkeit der Kapitalwertmethode im Rahmen der Investitionsplanung abhägt, die Aktienrendite eines verschuldeten Unternehmens die Aktienrendite eines nicht‐verschuldeten Unternehmens hinsichtlich des Verschuldungsrisikos überkompensiert.
A COMMENT ON TWO SIMPLE DECISION RULES IN CAPITAL RATIONING
Authors: NORTRØM CARL J.
Published: December 2006

The elegant solution of the capital rationing problem through linear or integer programing is of limited use in practical situations due to strong requirements of available information. The purpose of the article is to give conditions under which two simpler decision rules, present value per dollar outlay and internal rate of return, will lead to essentially the same solution as the linear programming approach. The conditions are given in terms of the shadow discount rates of the linear programing solution.

L'elégénte solution apportée au problème de rationement du capital au moyen de la programmation linèire, a une application limitée dans des situations réelles étant donné les stricts besoins d'informations dont il faudrait disposer. Dans cet article, on donne les conditions ous lesquelles deux principes simples de décision (la valeur actuelle et “Internal rate of return”) permettraient d'aboutir au même résultat que celui de la méthode linéaire de progammation. Les conditions sont données au moyen de taux d'escompte correspondants appropriés a la solution fournie par la progarnation linéaire.

Die elegante Lösung des Investitionsplans bei beschränkten Finanzierungsmitteln durch lineare oder ganzzahlige Programierung ist von begrenztem Nutzen in der Praxis, da die nötigen Informationen nicht zure Verfüngung stehen. Der Zweck des Beitrages ist eine Erleuterung der Bedingungen, worin zwei einfachere Entscheidungsregeln, Kapitalwert pro Dollar des Anschaffungspreises und interner Zinfuss, grundsätzlich zur selben Lösung als die lineare Programierung führt. Die Bedingungen werden als Schattendiskontierungsätze der Lgsung eines linearen Programs dargestellt.
CORPORATE FINANCE AND NORMALISED PRICE
Authors: FINDLAY M. CHAPMAN
Published: December 2006

The contention that an operational choice criterion is lacking for investment alternatives which would result in criss‐crossing time patterns of share prices is examined. In efficient markets, the capital asset pricing model is shown to provide an unambiguous criterion. In inefficient markets, it is contended that the problem is not financial choice criteria but rather accounting information production and dissemination. In this regard, the level of information, rather than lack of bias in its interpretation, is deemed significant.

Dans cet article. on examine la contestation suscitée par un manque de critère d'après lequel il serait possible de sélectionner des investissements qui entraineraient des variations dans les prix des actions, suivant ainsi unrythmealternatif. Dans les Marchés efficaces, le modèle déterminant le prix des capitaux de l'actif apparaft comme étant un critère précis. Dans les marchés inefficaces, on soutient que la question n'a pas rapport è des critères financiers sélectifs mais concerne plutôt la production et la diffusion d'informations comptables. A cet effet, la quantité d'informations se révèlt: ainsi plus significative que la perfection d'interprétation de ces informations.

Die Behauptung wird überpruft, dass ein operationales Auswahlkriterium für Investitionsalternativen fehit, welchrs sich überschneidende Zeitprofile von Aktienkursen liefern würde. Es wird festgestellt, dass das ‘Capital Asset Pricing’ Modell ein eindeutiges Kriterium anbietet. Es wird behauptet, dass in unwollkommenen Kapitaldrkten das Problem nicht Auswahlkriterien, sondern die Verarbeitung und Verbreitung von Bilanzinformationen ist. In dieser Hinsicht ist die Infoimationsmenge und nicht eine unvoreingenormnene Interpretation von Bedeutung.
THE VALUATION OF STOCK WARRANTS: A REJOINDER
Authors: SKERRATT L.C.L.
Published: December 2006

The purpose of the comment was to evaluate the Bird model in relation to the characteristics which were claimed for it, rather than against any other criteria. the conclusion which now might be drawn is that the warrant market is unsystematic in its valuation of securities.

Les observations apportées précédemmentavaient pour but de juger le modèle Bird. Pour cela, il était préférable de s'appuyer sur les caracteristiques qui le définissaient, plutôt que de lui opposer d'autres critères. Tenant compte de la réponse de Bird, on pourrait maintenant deduire que le marché des warrants est incohérent dans son évaluation des titres.

Der Zweck der ursprünglichen Anmerkung solte keine Beurteilung des Bird Modells gegenüber den Kriterien von Skerratt, sondern gegenüber den Merkmalen des Modells darstellen. Angesichts der Antwort von Bird, könnte man jetzt schliessen, dass der Berechtigungscheinmarkt Wertpapiere unsystematisch bewertet.
TAXATION AND MATHEMATICAL PROGRAMMING
Authors: Pointon John
Published: December 2006

This paper is based on a discussion of sets of constraints that can be introduced into mathematical programs for capital investment appraisal, in order to deal with the complexities of the UK tax system.
ARBITRAGE AND INVESTMENT IN COMMERCIAL PROPERTY
Authors: Ward C.W.R.
Published: December 2006

Leases in commercial property in the UK usually allow for the rent to be revised at fixed intervals throughout the contract. This feature complicates the valuation of financial investment in commercial property because the income has contractual fixed compments as well as an equity‐type variability. This paper presents a valuation method based on an arbitrage pricing approach to the occupancy of a property. The limitations of this method can be found in the inapplicability to observed rental contracts which limit rent revision to ‘upwards‐only’ changes. From this characteristic, the method based on option pricing is proposed and the application of the model to conventional commercial leaseholds is demonstrated.
A STUDY OF POSSIBLE GAINS FROM INTERNATIONAL INVESTMENT AND THE STATIONARITY OF INTER‐COUNTRY CORRELATION COEFFICIENTS: A REPLY
Authors: Watson J.
Published: December 2006

Previous studies have demonstrated that substantial benefits (beyond those available from a naive diversification strategy) were available to the international investor who could perfectly predict future inter‐country correlation coefficients. The present author's second paper (Watson, 1980) tested the null hypothesis that the sample correlation coefficients were drawn from the same population. The fact that the null hypothesis was not rejected does not exclude the possibility, as Yallup correctly points out, that the data could be generated by another process.
ENVIRONMENTAL VARIABLES OF MULTINATIONAL TRANSFER PRICING: A U.K. PERSPECTIVE
Authors: Tang Roger Y.W.
Published: December 2006

This paper reports the findings from an empirical study of multinational transfer pricing based on the information provided by 47 British multinational companies. The results indicate that company profit after tax was the key consideration for those companies in formulating their international transfer pricing policies. In addition, they also considered other important variables including the competitive position of their foreign subsidiaries, divisional performance evaluation, and foreign restrictions on repatriation of profits. Six dimensions of environment variables of multinational transfer pricing were also extracted using factor analysis technique.
ACCOUNTING FOR THE COST OF CAPITAL: AN EMPIRICAL EXAMINATION
Authors: Bartley Jon W.
Published: December 2006

One of accounting's oldest issues, accounting for interest costs, has become a subject of increased concern in recent years. This study empirically addresses the issue of whether the cost of equity capital should be charged against income. Fourteen measures of the cost of equity capital are examined. The empirical tests involve contemporaneous correlation of accounting betas for each income measure with market betas for a sample of 200 companies. The results of these association tests indicate that income measures, net of the cost of equity capital, may have greater information content than income as presently reported.
THE ASSOCIATION BETWEEN LEASE DISCLOSURE AND THE LESSEE'S SYSTEMATIC RISK
Authors: Cheung Joseph K.
Published: December 2006

This paper investigates the effect of a firm's lease commitment disclosure under Accounting Series Release 147 on its systematic risk. The three hypotheses are: (1) there will be no change in the lessee's systematic risk; (2) the lessee's systematic risk will increase because the disclosure increases the debt ratio; and (3) the lessee's systematic risk decreases because the disclosure reduces the uncertainty related to risk‐assessment. A hedge portfolio approach is used to test these hypotheses. The results indicate that the null hypothesis is to be rejected in favor of the third hypothesis.
OPTIMAL CASH MANAGEMENT UNDER CONDITIONS OF UNCERTAINTY
Authors: Punter Alan
Published: December 2006

The cash management problem considered here is the management of a liquid assets portfolio, composed of cash and marketable securities. The policies of US corporations towards investing surplus cash as reported in published surveys are summarised and models for the management of cash and marketable securities as proposed in the literature are outlined. The optimal solution is then presented for a particular cash management problem, first introduced by Mao and Sarndal. The problem is how to manage a portfolio of cash and marketable securities in order to service a given debt schedule, where the amounts are known but the timing of the payments is uncertain.
SOME TIME SERIES PROPERTIES OF CORPORATE EARNINGS IN NEW ZEALAND: A NOTE
Authors: Firth Michael
Published: December 2006

This study examines some time series properties of earnings and returns on shareholders' equity for a sample of 110 New Zealand firms. The results show that successive changes in these time series are independent and that they can be modelled by a random walk process.
ASSET PRICING AND FINANCIAL REPORTING WITH CHANGING PRICES
Authors: Morris Michael H. , McDonald Bill
Published: December 2006

This study empirically investigates the recent SFAS No. 33 requirements to determine if the inflation disclosures, or information similar to it, are impounded in security returns. An attempt is also made to determine which of the two diverse disclosures best represent the information impomded by the market. The investigation utilizes a methodological framework arising out of currently accepted asset pricing theory. The results suggest that the current cost data parallels the information impounded in security returns and that it provides risk information not included in the commonly employed systematic risk factor, beta.
ADVANCE PAYMENTS DURING INFLATIONARY PERIODS
Authors: Barlev Benzion , Livnat Joshua , Yoran Aharon
Published: December 2006

During periods of rismg prices, contracts for future delivery of merchandise are usually linked to a price index to protect suppliers from future cost increases, and customers, therefore, advance payments to avoid the price linkage. Suppliers are then faced with two problems: (i) the investment of advance payments and (ii) the presentation of the investment outcome in the fimancial reports. This paper uses a portfolio selection process to analyse the suppliers' investment decisions, and shows that the accounting presentation depends on the particular investment decision, which in turn affects the principalagent relationship. Suggestions are made to eliminate the undesirable effects of this relationap on management's decision making.
UNANTICIPATED INFLATION, TAXATION, AND COMMON STOCKS
Authors: Kanniainen Vesa
Published: December 2006

This paper focuses on the effects of unanticipated inflation on the market value of equity in a system with corporation tax and historic cost depreciation. It is shown that there exists a unique combination of debt and equity under which inflation neutrality is obtained, Whether or not unanticipated inflation hurts or benefits the stockholders in a particular firm depends upon a number of conditions. These include the depreciation rate of its assets relative to the amortization rate of its debt. Finally, the present tax system is contrasted with a fully indexed system involving replacement cost depreciation and indexation
STOCHASTIC DOMINANCE AND MEAN VARIANCE RULES IN THE SELECTION OF RISKY INVESTMENTS
Authors: Ashton David J.
Published: December 2006

This paper reexamines the methods of stochastic dominance and mean‐variance analysis for the selection of risky investments. It takes as its starting point the paper by Gandhi and Saunders in the Spring 1981 issue of this journal in which they argued for the superiority of stochastic dominance analysis. In this paper the countercase is put forward for the use of mean‐variance analysis. It is argued that while naive application of mean‐variance criteria to the ranking of projects in isolation might lead to erroneous decisions, in the presence of reasonably sized capital markets rules based on mean‐variance analysis still remain a more practical tool.
FACTORS AFFECTING THE BEHAVIOUR OF UK CLOSED END FUND DISCOUNTS 1968 TO 1977
Authors: Woodward R.S. , Matatko J.
Published: December 2006

This paper examines the behaviour of UK investment trust discounts for a sample of funds over the ten‐year period 1968 to 1977. The cross section variability of fund discounts is considered using fundamental analysis and a large number of potentially important factors are isolated and measured. Using multiple regression analysis, the optimal set of explanatory factors is ascertained, and it is found that the best fitting linear model changes substantially from year to year. The results indicate that fundamental analysis using cross section data may not be useful in the analysis and forecasting of UK closed end fund discounts.
VARIABLE TRANSACTIONS COSTS, THE CAPITAL ASSET PRICING MODEL AND THE CORPORATE DIVIDEND DECISION: A REPLY
Authors: Theobald Michael
Published: December 2006

It is argued that Schnabel's econometric point, while correct, has no impact upon the theoretical objectives of the original paper and that the model developed there is still empirically plausible.
A NOTE ON VICKERS' MARGINAL COST OF DEBT CAPITAL
Authors: Draper Dennis W. , Findlay M. Chapman
Published: December 2006

Douglas Vickers has written extensively on the concept of the marginal cost of debt capital. His defmition is shown to be ambiguous and his derivation rather unusual. This paper points out the problems in his work and derives a conventional marginal cost of debt.
A JUDGEMENTAL INTERNATIONAL CLASSIFICATION OF FINANCIAL REPORTING PRACTICES
Authors: Nobes C.W.
Published: December 2006

This paper briefly surveys some recent “empirical” international classifications. It suggests that their data contains errors and is not designed for classification, and that their methodology relies upon the doubtful data to generate hypotheses rather than to test them. This paper proposes a hypothetical classification which is more detailed and defines its universe more precisely than previous research. The testing selects factors deemed to represent fundamental aspects of difference in measurement practices, and scores these overtly and with explanation. Analysis is performed in several ways, including computer‐assisted clustering techniques. The results seem to confirm the hypothetical classification, and to be consistent with (but more detailed than) some earlier classifications.
ADDITIONAL EVIDENCE ON THE INCREMENTAL INFORMATION CONTENT OF THE 10‐K
Authors: Foster Taylor W. , Jenkins D. Randall , Vickrey Don W.
Published: December 2006

The goal of this investigation is to provide additional evidence concerning the incremental information content of the 10‐K from the aggregate market perspective. As in Foster and Vickrey (1978), the phrase, incremental information content of the 10‐K, refers to the information content of the data set in the 10‐K which is in excess of that which is contained in the related annual report to shareholders and other preceding announcements such as earnings releases. The statistical procedures seem to imply that the 10‐K did not, in general, possess incremental information content from the aggregate perspective for the firms considered herein.
DECOMPOSITION MEASURES AND THE PREDICTION OF FINANCIAL FAILURE
Authors: Booth Peter J.
Published: December 2006

Lev has indicated that the decomposition measures of failed firms are larger than those of non‐failed firms and concludes that decomposition measures may be usefully included in financial failure prediction models. This paper extends the use of decomposition measure concepts for financial failure prediction. Firstly, on a univariate basis, attributes of decomposition measures are tested for discriminating ability between failed and non‐failed companies. Secondly, all decomposition measures tested are used to derive a discriminant analysis model for failure prediction. The paper concludes that (1) the stability and size of some balance sheet derived decomposition measures discriminate between failed and non‐failed companies as far as four years before failure, and (2) a discriminant analysis model of balance sheet derived decomposition measures is not successful at predicting financial failure.
AN EMPIRICAL EXAMINATION OF THE IMPACT OF LIMITED REVIEW ON EQUITY PRICES
Authors: Fabozzi Frank J. , Fonfeder Robert , Casabona Patrick
Published: December 2006

SEC Accounting Series Release No. 177 required independent auditors to make a limited review of summarized quarterly data included in annual reports. This paper examines the reaction of investors to earnings announcements based on financial statements subject to limited review relative to announcements when no auditor involvement was required. The reaction of market participants is measured by an abnormal daily return metric of the common stock surrounding the published earnings announcement in The Wall Street Journal. As hypothesized, no difference in investor reaction is observed for the sample of firms subject to limited review for the 1977 fiscal year, but exempt in the 1976 fiscal year.
ON THE NEGATIVE RISK PREMIUM FOR RISK ADJUSTED DISCOUNT RATES: A COMMENT AND EXTENSION
Authors: Booth Laurence D.
Published: December 2006

This paper develops conditions necessary for negative risk premia to emerge at the market level, and at the individual level in imperfect markets. It also correctly shows how to discount cash outflows. The model used to integrate these topics is the state‐preference model of security valuation; the most general model available. The paper corrects serious errors contained in recent work published in the journal.
ON THE THEORETICAL RELATIONSHIP BETWEEN SYSTEMATIC RISK AND PRICE ELASTICITY OF DEMAND
Authors: Conine Thomas E.
Published: December 2006

The linkage between financial valuation and the product and factor markets faced by the firm is an area that is rapidly developing in the literature. The purpose of this paper is to demonstrate the theoretical bridge between systematic risk and price elasticity of demand for a firm's output. The primary theoretical result indicates that price elasticity of demand, the certainty equivalents of the random demand parameter and variable cost, and their respective covariances with the cash flow of the market portfolio are key determinants of systematic risk and thus a firms's cost of capital.
A COMPARISON OF RISK MEASURES WHEN USED IN A SIMPLE PORTFOLIO SELECTION HEURISTIC
Authors: Nawrocki David
Published: December 2006

Assuming that a portfolio manager selects a portfolio by maximizing the returnto‐risk ratios of the securities that constitute the portfolio, the performance of this “heuristic” is sensitive to the choice of risk measure in the return‐to‐risk ratio. Using sixty month holding periods and second degree stochastic dominance to evaluate the performance of the portfolio selection heuristic; the mean absolute deviation, beta and target semivariance were found to be superior to the variance and the mean semivariance. In addition, the heuristic with the superior risk measures provided performance comparable to the optimal single index model.
AN EXPLORATION INTO BANKRUPTCY DISCRIMINANT MODEL SENSITIVITY
Authors: Richardson Frederick M. , Davidson Lewis F.
Published: December 2006

Prediction has been a central theme in much of the accounting research and theory construction and verification over the past decade. Largely ignored in such studies has been consideration of the statistical properties of accounting measures, particularly as related to the effects of those properties on the signals from prediction models that use accounting measures as inputs. This study was designed to provide preliminary insight into the magnitude of the effects of this omission, and a bankruptcy prediction model was selected to facilitate the analysis. Results indicate that the linear discriminant model (as applied to prediction of failure) is sensitive to departures of inputdata distributions from multivariate normal.
ACCRUAL ACCOUNTING AND CASH ACCOUNTING: RELATIVE MERITS OF DERIVED ACCOUNTING INDICATOR NUMBERS
Authors: Belkaoui Ahmed
Published: December 2006

The purpose of this study was to evaluate the relative merits of performance indicators derived from either an income statement and a balance sheet both based on accrual accounting, or cash flow accounting. The balance sheet number showed lower variability and a higher persistency than the cash flow accounting and the income statement numbers. This phenomenon was attributed to an income smoothing distortion and a selective market response hypothesis. One implication for the standard setting bodies may be to favour an asset/liability view of earnings rather than either a revenue/expense or cash flow view.
CASH FLOW REPORTING AND DISTRIBUTIONAL ALLOCATIONS: A NOTE
Authors: Rutherford B.A.
Published: December 2006

This Note clarifies certain problems associated with the construction and interpretation of cash flow statements.
THE CAMERALISTIC METHOD OF ACCOUNTING: A HISTORICAL NOTE
Authors: Filios Vassilios P.
Published: December 2006

This paper has three purposes: (1) to describe concisely the nature and the form of the Cameralistic method of accounting; (2) to evaluate the historical significance of the method in the light of the more general movement of mercantilism which prevailed at the time of its development, and (3) to discuss briefly the role and contribution which the method has made to the development of financial accounting techniques. The Cameralistic method is shown to have an integral stewardship system of admirable perfection, given its single entry base.