bluuebunny/crossref_metadata_2025 huggingface dataset:
An Analysis of Agricultural Production in a Semi-Subsistence Economy
Authors: Tiwari Indra P.
Published: July 2017

This paper summarizes the socioeconomic variables that characterize agricultural production in a semi-subsistence rural economy. The findings confirm the agricultural practice in the Western Development Region of Nepal to be semi-subsistence, that is, farming in small areas that are not viable for large-scale commercialization, limited use of improved varieties of crops, production mainly for domestic or local consumption and livestock rearing in small herds, These features, which are characteristic of lack of modernization and commercialization, describe production in this economy better than any other socioeconomic variables.
Some Factors Influencing Yield Trends of Sugarcane in Papua New Guinea
Authors: Hartemink Alfred E. , Kuniata Lastus S.
Published: July 2017

Commercial rainfed sugarcane cultivation in Papua New Guinea was begun in the early 1980s by Ramu Sugar Ltd. Over the last 15 years, annual cane yields have ranged from 28 to 88 tonnes/hectare, this wide variation being largely explained by sudden and catastrophic infestation by moth stem borers, cicadas, white grub and Ramu stunt virus. To a lesser extent yields were affected by weed competition, Changes in soil properties under continuous cultivation included decreases In pH, available phosphorus and exchangeable potassium, and some preliminary data suggest soil compaction. Leaf nutrient concentrations of nitrogen, phosphorus and potassium also declined slightly. It is concluded that yields were largely influenced by insect pests and diseases, but that the management of soil fertility is likely to become increasingly important once those problems have been solved.
The Development of a Mycoinsecticide for the Control of Locusts and Grasshoppers
Authors: Bateman Roy
Published: July 2017

Both national authorities and the donor community require methods of locust and grasshopper control that are less insecticide-dependent and more environmentally friendly. The LUBILOSA (LUtte Biologique contre les LOcustes et les SAuteriaux) programme has identified mycoinsecticides, based on aerial conidia of fungal entomopathogens such as Metarhizium, as the most effective biological control technique discovered to date. High (90%) insect mortalities have been demonstrated in the field following the application of oil-based formulations with ultra-low volume spraying equipment normally used for acridid control. The mechanisms of disease transmission in the field are still under investigation and the programme has helped to initiate a re-evaluation of the taxonomic status of the genus Metarhizium. Effective mycoinsecticides can be produced using relatively unsophisticated equipment although the quality of commercial products would need to be carefully controlled. Metarhizium has recently been recommended by the Food and Agriculture Organization (FAO) for use in environmentally sensitive areas, and the programme has now entered an implementation phase.
Look at it this way
Authors: Simpson James R.
Published: July 2017

The Look at it this way section of the journal features contributions from distinguished scientists on contentious and current issues in areas such as development, population growth, agricultural production and policy.
The Future for Red Meat in Human Diets
Authors: Pensel Norma
Published: July 2017

This essay was awarded the first Gianni Schellino Memorial Prize. This prize was established by the late Signor Ferdinando Schellino in memory of his son who died in 1993. The competition will continue biennially for the best essays covering the designated aspect of meat science and technology and human nutrition. Full details of the next competition will be available in October 1997 from Dr David Lister, Chairman and Scientific Secretary of the Gianni Schellino Memorial Prize, at the International Meat Secretariat, 64 Rue Taitbout, 75009 Paris, France (fax: 1-42806745) which administers the prize, or by e-mail to schellino.prize@dial.pipex.com
Low Cost Irrigation: Experience from the Past
Authors: Wild Alan
Published: July 2017

Artificial drainage is usually an essential component of irrigated farming in low rainfall areas, but it is expensive. This article looks at a system without artificial drainage that was used in ancient Mesopotamia for thousands of years. Its three elements were a two-year rotation of winter cereals with a fallow of deep-rooted leguminous weeds, mixed farming with animals grazing the fallow, and a thorough wetting of the soil before the first ploughing. Although there was a high water table the system minimized the threat of salinity and provided nutrients for the cereal crops. Eventually the soils became saline, the possible causes of which are discussed. The principles of the system may have applications to the present day where large capital investment is not appropriate.
A Self-Study Approach to Youthful Drug Abuse
Authors: Ianni Francis A. J. , McNeill Barbara D.
Published: July 2017

The urgency of current social problems such as drug abuse presents the social scientist and his clients with an apparent dilemma Programs of social remediation which are hastily undertaken without the benefit of research often flounder after an initial burst of energy because they are based on romantic notions rather than on real knowledge. But, on the other hand, good research into these problems is usually time-consuming and expensive—particularly when the problem under investigation is neither well understood nor even well defined. Research is rendered even more difficult when there is a requisite need to understand the specific culture or subculture within which the social problem is operative before the social scientist can begin to ask (let alone seek answers to) relevant questions.
An Efficient Accessibility Model: Applications for Airline Network Analysis
Authors: Toh Rex
Published: July 2017

This article describes an efficient, systematic procedure for ranking the accessibility and centrality of stations, using graph theoretic methods to identify pivotal and marginal points. Alitalia Airlines' Far East route structure and South African Airlines' domestic network are used to illustrate the model and its implications on the strategic location of headquarters, technical support services, conference sites and tourist attractions. The impact on aircraft deployment is also examined. The article addresses the logistical implications of the addition or deletion of new sectors or stations by way of sensitivity analysis and anticipates the growth of hub and spoke airline networks to increase total network connectivity and accessibility.
World Energy Outlook through 1995
Authors: Tahmassebi Hossein
Published: July 2017

A worldwide glut of petroleum will continue to put downward pressure on oil prices in the years ahead. Though the extent of price decline is difficult to predict, the author projects three separate scenarios based on market conditions prevailing in July 1985.

The author thinks OPEC is likely to change its past strategy by emphasizing market share rather than price stability. In direct contrast to its current policy, the organization may announce a production floor rather than a ceiling and thus relegate the task of maintaining the price to non -OPEC producers.

The Most-Likely Scenario assumes the price for OPEC's benchmark crude oil will decline from $28 a barrel in 1985 to $23 by 1987. It will remain there until 1990 and then increase only at the rate of inflation to $30.78 (current dollars) a barrel in 1995. This scenario assumes OPEC will refuse to lower its production quota from its current level of 16 million barrels a day.

Under the Low-Price Scenario, Arab Light declines to $15 a barrel by 1987, gradually climbs to $20 a barrel by 1990, and $26 a barrel by 1995. This projection assumes a further deterioration of discipline within OPEC, resulting possibly in a loss of membership.

The High-Price Scenario foresees Arab Light declining to $26 a barrel by 1987, remaining there until 1990, and then increasing by the rate of inflation to $36.47 by 1995. An environment of simultaneous rapid economic expansion and spiraling inflation would make this scenario probable.
Austin Chalk and Buda Limestone (Cretaceous) Petroleum Reservoirs in Caldwell County, Texas—A Case History
Authors: Dawson William C.
Published: July 2017

The Austin Chalk and Buda Limestone are commercial oil reservoirs along a 250-mile trend extending from Dimmit to Burleson counties, Texas. This south Texas Cretaceous hydrocarbon trend has been the focus during the past six decades of several ‘drilling booms’ which have delimited numerous large oil fields in fractured carbonate reservoirs adjacent to major faults. Data from wells drilled near two newly mapped faults in Caldwell County, Texas, indicate that, despite its maturely drilled status, the Austin-Buda trend has some future exploratory potential. Representative well histories reveal drilling and completion problems and economic risks that characterize the Austin-Buda trend.
Petroleum Exploration and Development in Pakistan
Authors: Nizami A. Rauf , Nizami M. Sharif
Published: July 2017

The paper presents an overview of petroleum exploration activity in Pakistan. Drilling activity has been relatively high in recent years and there are grounds for optimism that with further activity, Pakistan could become self sufficient in energy.
Hydrocarbon Production in the Gulf Coast Region from Organic-Rich Source Beds of Ancient Intraslope Basins
Authors: Williams Douglas F. , Lerche Ian
Published: July 2017

We have recently presented an empirical model to explain how low oxygen levels in intraslope basins of the northwestern Gulf of Mexico have been a common mechanism for the accumulation of sediments with significantly increased amounts of marine organic carbon. In that model (Model I) progadation of the shelf-slope and regional salt tectonics were invoked to control the occurrence and stratigraphic distribution of source beds throughout the Tertiary of the Gulf of Mexico. In turn, the maturation history of these organic-rich sediments is influenced by the high thermal conductivity of the underlying salt structures.

In Model II, the topic of this paper, we use random number theory to suggest that the occurrence of organic-rich black muds in intraslope basins of the northwestern Gulf of Mexico had sufficient capacity to more than account for the known oil and gas reserves in sediments of the Gulf Coast Geosyncline.
A Review of Petroleum Exploitation and Production Activities in North West Europe
Authors: Jones Clive
Published: July 2017

The review concentrates on activities during 1986 but historic data to 1965 are included. Licensing; exploration and appraisal; production, development and reserves; pricing and escalation, revenue and fiscal summaries are included for the whole of North-West Europe.

The paper is based on James Capel's Petroleum Services Department's 1986 annual review which is produced from Capel's extensive coverage of the energy industry in support of its stockbroking and banking activities.
1992 Changes for the European Natural Gas Markets
Authors: Carriere J.
Published: July 2017

The Netherlands has been joined by Norway the USSR and Algeria as the important suppliers of natural gas to Western Europe. Supply and demand are in balance until the mid nineties after which there will be a widening supply gap. Additional supplies are likely to come from the Soviet Union, Algeria and Nigeria. Costs will rise significantly as more remote sources of supply are used. Western European gas distributors continue to arrange future supplies with long term contracts linked to the cost of petroleum products.
The Middle East – A Mixture of Oil and Politics
Authors: Skeet I.
Published: July 2017

The paper deals with the prospects for stability, in the context both of Middle East politics and of oil price and security. It shows that, because political stability is viewed differently by the actors who would be required to create the constituent parts of a stable political system, the likelihood of such stability is not high. In the case of oil, the objectives of the so-called producer/consumer dialogue are also different for both sides and a stable system is more likely to persist (although always subject to political upsets) as a result of whatever price management naturally evolves rather than through the creation of newly constructed mechanisms.
Assessing Political Risk in International Exploration
Authors: Downey Marlan W.
Published: July 2017

Political risk assessment for international investments is discussed within a personal essay drawing on thirty-five years of experience in conducting exploration and production ventures. During those years, the author has supervised exploration and production investments of several hundred million dollars per year.

To be truly useful, political risk assessments need to be focused a decade in the future, when successful investments are most at risk. Quantitative predictions of political and economic risk in this distant future are arrant nonsense.

Since most exploration ventures are failures, the primary aim of the investor should be to minimize the costs of failure. Investments should be selected that have the greatest chance of success, and that, if successful, carry exceptional value.

Two additonal screening questions are helpful: Are my people safe? Are we needed, or merely wanted?

Large volumes of additional information on country risk assessment are commonly provided to senior management. Such data have great value in keeping management well informed; they have little value in keeping management dependably advised.
Gas Markets: A Promising Tomorrow Starts Today
Authors: Safrance C.F.
Published: July 2017

Natural gas consumption in industrialised central Canada, Ontario, the major consumer of western production (28%), is likely to grow by 300 BCF by 1995. In traditional markets this will result from the appeal of a “clean” fuel at a competitive price but the growth of the direct purchase market could affect the manner of arranging sales and guaranteeing supply. New markets will arise from the use of gas for electrical generation, replacement of electricity for domestic use and air conditioning and for natural gas vehicles.
Incomplete AVO near Salt Structures and Impact for AVO Analysis
Authors: Ross C.P.
Published: July 2017

Amplitude versus offset (AVO) measurements for deep hydrocarbon-bearing sands can be compromised when made in close proximity to a shallow salt piercement structure. Anomalous responses are observed, particularly on low acoustic impedance bright spots. Common-midpoint (CMP) data from key seismic profiles traversing the bright spots do not show the expected Class 3 offset responses as defined by Rutherford and Williams (1989). On these CMPs, significant decrease of far trace energy is observed. CMP data from other seismic profiles off-structure do exhibit the Class 3 offset responses, implying that structural complications may be interfering with the offset response. A synthetic AVO gather was generated using well log data, which supports the off-structure Class 3 responses, further reinforcing the concept of structurally-biased AVO responses. Acoustic, pseudo-spectral modelling of the structure substantiates the misleading AVO response. Pseudo-spectral modelling results suggest signal degradation observed on the far offsets is caused by wavefield refraction — a shadow zone, where the known hydrocarbon-bearing sands are not completely illuminated. Such shadow zones obscure the correct AVO response, which may have bearing on exploration and development.
The Identification of Fault Pattern Fractals for Improved Oil and Gas Recovery: A New Process to Identify and Describe Fault Sets Using Non-Linear Methods
Authors: Stølum Hans-Henrik , Kaye Steve
Published: July 2017

Unexpected faults are a serious production problem in numerous, complex and compartmentalised oil and gas fields, and are often the single most important restraint on recovery. Fractal mathematics has demonstrated a surprising degree of order in many natural, apparently random systems. It has been shown that fault patterns exhibit a similar order which could be used to indicate the presence of structures missed in the original interpretation of the seismic data and to predict faults below the approximate 20 m limit of seismic resolution. The potential for greater clarity and resolution opened up by this method may greatly aid field description and reservoir production.

We will discuss the development of a comprehensive fault pattern characterisation quantatively with a set of parameters arising from non-linear methods of analysis. This allows for the standardised comparison of seismic interpretations and a precise method for testing interpretations from the same dataset.

We will show how fractal mathematics may give a measure of the density of the fault set, the number of faults below the limit of seismic resolution, resolve small fault clusters below the limit of seismic resolution and aid in the description and analysis of fault sets.
The Sodom Tradition in Romans 1:18–32
Authors: Esler Philip F.
Published: July 2017

Many commentators have made suggestions as to the major allusion in Romans 1:18–32, with recent examples including Adam in Genesis 1–2 and decline of civilization narratives. This article proposes instead that the dominant tradition underlying this passage of the letter is that of Sodom. Yet rather than configuring the discussion as an example of how one or more texts have influenced another text, in this case Romans, it is argued that we must consider how traditions such as this would have been mediated to an audience that was largely illiterate. This suggests that the appropriate model lies in the processes of collective memory rather than the practice of intertextuality. A survey of relevant material in Israelite and Christ-follower writings is then conducted with an emphasis on how the character and fate of Sodom were remembered, understood, and utilized in a residually oral culture. An examination of the argument of Romans 1:18–32 in the light of this discussion reveals so many elements of the collective memory of Sodom as to justify the view that it is the dominant tradition in this passage. The concluding section of the article situates this result in relation to Paul's communicative strategy in the letter.
No Kingdom of God for Softies? or, What Was Paul Really Saying? 1 Corinthians 6:9–10 in Context
Authors: Elliott John H.
Published: July 2017

The search for biblical texts on “homosexuals” and “homosexual activity” presents a particularly prickly problem of contextual reading and interpretation. It involves, among other things, a clash of ancient and modern sexual concepts, constructs, and frames of reference. Attempts at using allegedly relevant texts as moral guidelines today are subject to serious exegetical and hermeneutical constraints.
The Reliability of Fair Value versus Historical Cost Information: Evidence from Closed-End Mutual Funds
Authors: Carroll Thomas J. , Linsmeier Thomas J. , Petroni Kathy R.
Published: July 2017

This research examines the value-relevance of fair value accounting relative to historical cost accounting for financial instruments held by closed-end mutual funds to provide evidence on the reliability of fair value estimation. Closed-end funds are considered because their balance sheets and income statements typically are reported at fair value and there is great variation in the types of securities held by various funds. For a sample of 143 closed-end mutual funds during 1982–1997, we find a significant association between stock prices and the fair value of investment securities, as well as between stock returns and fair value securities gains and losses, even after controlling for historical costs. To examine whether differences in the perceived reliability of the investment securities fair values affect investors' assessments of the usefulness of the information, we examine the association between stock price metrics and fair values across different fund types (e.g., publicly held equity securities from G7 countries, equity securities other than those publicly held from G7 countries, U.S. government or municipal securities, corporate bonds). We find that in all cases there is a significant association between the stock price metrics and fair values. This suggests that the need to estimate fair values for securities traded in thin markets, such as private or non-G7 equities, does not cause the incremental value-relevance of fair value information to be eliminated. Our strong and consistent findings in the closed-end fund setting suggest that reliability problems in measuring the fair values of investment securities are not the primary explanation for the inconsistency in prior research results; instead such inconsistency may be attributed to the incomplete availability of fair value measures in other settings.
The Effect of Conservatism on Analysts' Annual Earnings Forecast Accuracy and Dispersion
Authors: Mensah Yaw M. , Song Xiaofei , Ho Simon S. M.
Published: July 2017

This study examines the effect of the implementation of conservative accounting policies by firms on analysts' annual earnings absolute forecast errors and forecast dispersion. Three aggregate accounting-based conservatism measures were used to estimate the level of conservatism in accounting practice. After controlling for the effects of industry, forecast age, number of analysts following the firm, firm size, earnings stability, and risk, accounting conservatism was found to be associated with higher forecast errors and forecast dispersion. Furthermore, the tests of robustness indicate that the above results are not driven by earnings predictability, the undue influence of outliers, or earnings management.
Does the Market Fixate on Reported Earnings for R&D Firms?
Authors: Boone Jeff P. , Raman K. K.
Published: July 2017

By mandating that research and development (R&D) spending be expensed immediately, Statement of Financial Accounting Standards (SFAS) No. 2 (FASB [1974]) potentially distorts the income statement in the sense that good news (e.g., an increase in pre-R&D earnings concurrent with a larger increase in R&D spending) could translate into reported bad news (i.e., a decline in reported earnings) and vice versa. In this paper, we focus our analysis on a directed sample of firms for which reported earnings are highly distorted by changes in R&D spending, and rely on intraday trading data and event study tests of both stock returns and trading activity (at the time of quarterly earnings announcements) to examine whether the stock market is fixated on reported earnings or whether it attempts to “look beyond” reported earnings by utilizing the information on R&D spending disclosed as part of the earnings announcement. The results suggest that R&D spending information has an effect on trading activity for all trade sizes and firm information environments, but no price effect for firms with relatively impoverished information environments. The implications of our findings are discussed.
Do Non-Investment Bank Analysts Make Better Earnings Forecasts?
Authors: Jacob John , Rock Steve , Weber David P.
Published: July 2017

This study compares the earnings forecasts of analysts employed by investment banks with those employed by firms not involved in investment banking. We discuss possible resource and informational advantages for investment bank analysts, and conflicts of interest faced by both groups, suggesting that, despite incentives stemming from corporate financing operations, investment bank analysts may nevertheless provide superior forecasts. We also compare forecast accuracy and relative optimism within investment bank analysts between affiliated and unaffiliated analysts. Our results indicate that, controlling for relevant factors identified in prior research, investment bank analysts' forecasts are on average more accurate than forecasts made by other analysts. Among investment bank analysts, affiliated analysts issue more accurate forecasts than unaffiliated analysts. Further analyses reveal evidence consistent with the employment of higher-quality analysts and additional resources contributing to, but not completely explaining, the relation between forecast accuracy and investment banking and also with investment-banking affiliations conferring informational advantages. Regarding alleged biases caused by conflicts of interest, we find that investment bank analysts' forecasts are less optimistic than those of their non-investment bank counterparts. We discuss implications of our results for the Global Settlement brokered by New York State Attorney General Elliott Spitzer, the Securities and Exchange Commission, and ten large investment banks.
Disclosure Quality and the Mispricing of Accruals and Cash Flow
Authors: Drake Michael S. , Myers James N. , Myers Linda A.
Published: July 2017

In this paper, we investigate the role that disclosure quality plays in the accurate valuation of accruals and cash flow. We predict that stock prices of firms with higher-quality disclosures more accurately reflect the persistence of accruals and cash flow. We test our predictions using analyst ratings of disclosure published in the annual Association for Investment Management and Research (AIMR) Corporate Information Committee Reports for the years 1982 through 1996. The results provide strong evidence of mispricing for the subset of firms with lower-quality disclosures and of a significant reduction in mispricing for the subset of firms with higher-quality disclosures. We confirm the results of our Mishkin tests using returns regressions that also control for investor sophistication, analyst following, and firm life-cycle stage. Overall, our results demonstrate the mitigating effect that higher-quality disclosure has on mispricing.
The “Numbers Game” in the Pre- and Post-Sarbanes-Oxley Eras
Authors: Bartov Eli , Cohen Daniel A.
Published: July 2017

We address two research questions in this study. First, is there a change in the prevalence of expectations management to meet or beat analysts' earnings expectations in the aftermath of the 2001–2002 accounting scandals and the passage of the 2002 Sarbanes-Oxley Act (SOX)? Second, did the mix among the three mechanisms used for meeting or beating analysts' earnings expectations: accrual-based earnings management, real earnings management, and expectations management change in the Post-SOX period? We hypothesize and provide empirical evidence that the observed drop in the frequency of just meeting or beating analysts' earnings expectations is associated with both (1) a decline in the use of downward expectations management and upward accrual-based earnings management in the Post-SOX period relative to the preceding seven-year period and (2) an increase in upward real earnings management activities.
Why Are Analysts Less Likely to Follow Firms with High Managerial Ownership?
Authors: Baik Bok , Kang Jun-Koo , Morton Richard
Published: July 2017

Prior research finding a negative relation between managerial ownership and analyst coverage argues that greater managerial ownership lessens the need for external monitoring by financial analysts due to fewer agency problems (Moyer, Chatfield, and Sisneros [1989]). Other research, based on foreign firms, argues that greater managerial ownership leads to entrenchment, and the negative relation with analyst following reflects analyst reluctance to follow firms with incentives to withhold information (Lang, Lins, and Miller [2004]). We further evaluate these two explanations by directly examining the link between ownership structure and a firm's disclosure environment. Using a sample of 25,855 U.S. firm-year observations from 1995 to 2006, we confirm a negative relation between managerial ownership and analyst coverage. We also find that managerial ownership is negatively related to the likelihood of management issuing earnings forecasts and find that this negative relation is most pronounced for firms with impending “bad news.” Furthermore, firms with higher managerial ownership release less accurate and more optimistic forecasts, particularly when faced with bad news. Overall, our results support the view that agency problems associated with greater managerial ownership contribute to less disclosure and a more opaque information environment, which discourage analyst following. We examine these two explanations from an investor perspective and find that the joint effect of greater managerial ownership and greater analyst coverage enhance firm value. This result is again inconsistent with the notion that greater managerial ownership reduces the need for analyst monitoring.
The Value Relevance of Alternative Earnings Measures: A Comparison of Pro Forma, GAAP, and I/B/E/S Earnings
Authors: Entwistle Gary M. , Feltham Glenn D. , Mbagwu Chima
Published: July 2017

This article explores whether pro forma earnings, GAAP earnings, and I/B/E/S earnings are value relevant and, more important, which in comparative terms has the greatest value relevance. In addition to using actual pro forma measures contained in earnings press releases of Standard and Poor's (S&P) 500 firms, our design employs both traditional price and returns association models and incorporates both current and future measures of earnings. We find for the full period, 2000 through 2004, that all three earnings measures are value relevant. We further find that pro forma earnings are significantly more value relevant than Institutional Broker's Estimate System (I/B/E/S) earnings, which in turn are more value relevant than Generally Accepted Accounting Principles (GAAP) earnings. These results are robust to several alternate model specifications as well as to controlling for measures of opportunistic reporting.
Countering Opportunism in Structuring and Valuing Transactions: The Case of Securitizations
Authors: Bryan Stephen , Lilien Steven B. , Sarath Bharat
Published: July 2017

During the financial crisis of 2008, the debate on the accounting profession's role has focused mostly on mark-to-market accounting rules. We argue that other weaknesses in the accounting rules as applied to securitizations predate the current crisis. The accrual system that underlies all accounting allows revenues to be recognized in advance of cash flows but requires reserves on receivables. Similarly, the fair value system books unrealized gains, but fails to recognize reserves explicitly. In illiquid markets, fair value estimates have to be based on internal models. Compensation arrangements that are closely tied to these estimates create a perfect setting for managers to increase their compensation by inflating asset values. We propose a method of recognizing fair value reserves that builds on existing practice. Such reserve accounting, an application of conservatism, will mitigate procyclical swings in fair value estimates and reduce incentives for overly optimistic asset valuations. Our analysis is conceptual in that we describe issues and their potential causes, and we propose a solution. We neither build a formal model nor perform empirical tests. Our article is exploratory and is intended to generate debate that could lead to significant improvements in accounting standards and provide a basis for rigorous empirical tests.
Executive Directors, Pay Disclosures, and Incentive Compensation in Large European Companies
Authors: Muslu Volkan
Published: July 2017

Using a proprietary database for the largest 158 European companies during 1999-2004, I find that transparency of executive pay disclosures and sensitivity of executive pay to performance increase with the proportion of top executives serving as company directors and with dual chief executive officer (CEO) and board chairs. These relations strengthen in countries with more protection for outside shareholders. The positive marginal effects of executive directors (i.e., insiders) on transparency of pay disclosures and sensitivity of pay to performance are not significant when (1) insiders already have the numerical majority on boards, (2) CEOs are board chairs, and (3) pay levels and company ownership of executives are relatively high. Overall, the evidence supports the optimal-contracting argument over the rent-seeking argument. Specifically, companies mitigate agency costs associated with the existence of company executives on boards through transparent pay disclosures and incentive compensation. However, such actions are limited to companies with strong country-level investor protection and significant representation of independent directors on company boards.
Alternative Cash Flow Measures and Risk-Adjusted Returns
Authors: Schaefer Thomas , Kennelley Michael
Published: July 2017

This paper compares different definitions of cash flow in terms of their incremental explanatory power over historical cost earnings by reference to changes in equity share prices. Two refined definitions of cash flow as well as a crude definition are examined. The results indicate that no improvement in association with risk-adjusted security returns is obtained by using the refined cash flow definitions.
Corporate Developments
Authors: Knortz Herbert C.
Published: July 2017

The Management Accountant: Refocusing for the 1990s
The Interest Rate Component of Systematic Risk
Authors: Gordon D. A. , Gordon M. J. , Gould L. I.
Published: July 2017

Changes in the long-term interest rate would seem to be an important source of systematic risk for common shares, but the empirical results to date have been very disappointing. For the most part these results have been obtained with a model where an interest rate variable, say the holding period return (HPR) on a long bond, is added to the market model. This paper examines two alternative models in which the independent variables are different linear combinations of the HPRs on the market and a long bond. The alternative models are found to be superior theoretically and empirically. In tests on a large number of utility and industrial shares over a number of periods, the most attractive model theoretically produces interest rate betas that are highly significant for all utility shares and a very large fraction of the industrial shares.
A Generalized Transshipment Model for Cash Management Decisions
Authors: Balachandran B. V. , Padmaraj Raj A.
Published: July 2017

Cash Management involves the optimal financing of net cash outflows and investing net inflows of a firm, while simultaneously determining payment schedules for existing liabilities. We formulate this as a generalized transshipment model to minimize the total cost of allocating sources of funds to existing uses, while retaining the flexibility of transshipping cash among existing sources. Utilizing a numerical example of Orgler, which is solved using Linear Programming, we compare our model with its ordinary transshipment reformulation by Srinivasan. We provide a richer formulation than earlier formulations in the literature for two reasons. First, due to our model flexibility, we can provide a unique shadow price for each source-use possibility which is not available in Orgler. Second, we can address and capture the time value of money in both directions which is not possible in Srinivasan's model. Extensions of our methodology for post-optimal and sensitivity analysis, minimum cash balance requirements and other institutional constraints are outlined in our computationally efficient model formulation. Other applications are identified in the conclusion.
The Distribution of Financial Ratios—A Note
Authors: So Jacky C.
Published: July 2017

Three competitive distributions are offered by the literature to explain the non-normality and skewness of the cross-sectional distribution of financial ratios: the mixture of normal distributions, the lognormal distribution, and the gamma distribution. Using a new technique, this paper shows that the lognormal distribution and the gamma distribution are not supported by the empirical evidence. Although these two distributions indeed capture skewness, they do not portray the correct shape of the distributions. The non-normal stable Paretian distribution seems to be good candidate to describe the distribution of financial ratios.
An Empirical Investigation of the Usefulness of Earnings per Share Disclosures
Authors: DeBerg Curtis L. , Murdoch Brock
Published: July 2017

This study reports on an empirical investigation involving large numbers of firms disclosing primary and fully diluted earnings per share over a 10-year period. The potential usefulness of dual earnings per share disclosures to decision makers is evaluated. Results indicate that primary and fully diluted earnings per share contain essentially the same information and that reporting both amounts is superfluous.
Discretionary Disclosures in Response to Intra-Industry Information Transfers
Authors: Ali Ashiq , Ronen Joshua , Li Shu-Hsing
Published: July 2017

This study examines information disclosures about non-announcing firms' following the earnings release by another firm in the same industry. It provides indirect evidence (through stock price changes) that the information disclosed about non-announcing firms is significant only when announcing firms convey bad news through their earnings releases and when non-announcing firms are large. This finding provides support to Verrecchia's (1983) theory which predicts that in the presence of disclosure related costs, full revelation of managers' private information (as shown in the Grossman [1981]-Milgrom [1981] world) does not obtain. Instead, managers use discretion in disclosing their private information.
The Usefulness of Current Cost Information for Identifying Takeover Targets and Earning Above-Average Stock Returns
Authors: Walter Richard M.
Published: July 2017

Prior studies constructed takeover prediction models using financial variables that incorporated historical cost data. The studies report conflicting findings concerning the models' abilities to identify future takeover targets and to earn above-average returns by investing in shares of the targets. Other research has shown that financial ratios that incorporate asset replacement cost (i.e., current cost) data are useful for differentiating between takeover targets and nontargets; however, the ability to earn above-average returns was not examined.

This study combines the two tines of research by constructing a takeover prediction model in which predictor variables are constructed from current cost data. A model having similar variables was constructed from historical cost data. The models were estimated from takeovers occurring between 1981 and 1984, and the models separately identified takeover targets during the year 1985 based on a prediction sample. Stock returns were cumulated over the year 1985 for the two portfolios of predicted targets.

The results show that current cost data were useful for identifying future takeover targets and earning above-average stock returns. The current cost portfolio earned risk-adjusted returns that exceeded the returns of the entire prediction sample and the returns of the historical cost portfolio. Additionally, the models' explanatory power exceeds that which was reported for models in prior research.
The Association between the Accuracy of Management Earnings Forecasts and Discretionary Accounting Changes
Authors: Jaggi Bikki , Sannella Alexander
Published: July 2017

This study examines whether there is an association between discretionary accounting changes and the accuracy of management earnings forecasts. First, we discuss the rationale for management's incentive to improve the accuracy of publicly disclosed earnings forecasts. We then conduct empirical tests to determine whether there is support for the hypothesized relationship between discretionary accounting changes and management forecast accuracy.

The empirical results indicate that there is a strong association between high prechange forecast errors and the adoption of discretionary accounting changes. Most accounting changes are associated with significant forecast errors (i.e., deviations between the prechange earnings and predicted earnings are high); after adopting discretionary changes, the deviations are reduced. The results of a comparative analysis using analyst forecasts as a benchmark indicate that accounting changes are adopted when management forecast errors are higher than analyst forecast errors. Accounting changes are not used if management forecast errors are less than or equal to analyst forecast errors. The OLS regression results demonstrate that there is a significant association between the size of management forecast errors and the magnitude of the change in EPS.

Overall, the study shows that management has an incentive to engage in discretionary accounting changes to improve the accuracy of their publicly disclosed earnings forecasts. The empirical results are, however, subject to two interpretations. Either discretionary accounting changes are used to improve the accuracy of publicly disclosed management earnings forecasts, or managers' earnings forecasts are sometimes disclosed in anticipation of planned accounting changes.
Analysis of Small-Business Financial Statements Using Neural Nets
Authors: Kryzanowski Lawrence , Galler Michael
Published: July 2017

This paper provides a tutorial in the use of artificial neural networks (ANNs) in accounting and finance in the form of a well-documented exploratory application of an ANN with automatic learning to the analysis and interpretation of the noisy data contained in the financial statements of a sample of small businesses. The application uses the learning algorithm of the Boltzmann machine (BM), which employs the technique of stochastic optimization called simulated annealing. Various experiments are run using balanced training sets and (un)balanced test sets. Since most assessment errors are boundary errors and the ratios of successful classifications for the test sets are clearly above chance for the balanced training/test sets, the BM with two- and three-class output separation appears to have practical value. As expected, the BM demonstrates better accuracy as the size of the training sample increases in a balanced fashion, and less accuracy as the test set is augmented in an unbalanced manner.
Second Partner Review: An Analytical Model
Authors: Matsumura Ella Mae , Tucker Robert R.
Published: July 2017

This paper develops an analytical model to examine the role that second partner review plays in promoting accurate, unbiased decisions by an engagement partner who possesses imperfect information and is subject to economic pressures to bias judgment. Optimal strategies are derived in a single-period model. The model includes an engagement partner and a second partner who both choose a sample size and a qualified or unqualified audit report. The analysis identifies conditions under which second partner review induces the engagement partner to report with greater independence. In addition to providing predictions immediately testable in an experimental context, the comprehensive example demonstrates that second partner review can cause the engagement partner not only to report with greater independence but also to sample more.

Central to our analysis is a general audit reporting model that applies to both one-partner and two-partner situations. This model provides definitions and demonstrates the effect of auditor independence and competence and the sufficiency and competence of evidential matter, audit risk, client pressure, and societal penalties (e.g., legal and reputational costs) on an audit partner's reporting decision. Moreover, it demonstrates the importance of the engagement partner's competence and work effort, as well as the reduction of underlying audit risk, in countering client pressure and promoting independent reporting. Because of the rigorous definitions of auditing concepts and the number of variables included, the model provides a flexible structure for studying other auditor reporting situations.
The Impact of Analyst Following on Stock Prices and the Implications for Firms' Disclosure Policies
Authors: Trueman Brett
Published: July 2017

This paper shows that there is a positive relation between the number of analysts following a firm and the firm's expected share price. This relation is a direct consequence of market participants' inability to observe the number of informed traders in the market. It is further shown that a firm's manager can have an impact on analyst following by varying the precision of the private information analysts obtain about the firm. In equilibrium, the manager will choose a precision level greater than that which maximizes analyst following, but, in many cases, less than its largest possible value.
Limits to Voluntary Disclosure in Efficient Markets
Authors: Rajan Madhav V. , Sarath Bharat
Published: July 2017

In competitive markets, prices offered by investors play a dual role: they must induce the firm to make truthful disclosures about its expected cash flows and they must also be efficient, i.e., equal the expected future cash flows to the buyer conditional on the disclosed information. We show that these requirements may exert opposing influences resulting in equilibrium disclosures being partial; that is, they might cause firms to reveal some, but not all, of the valuation relevant information possessed by the firm. We then characterize the maximal level of information that can be elicited through efficient prices. We apply our analysis to the study of voluntary disclosures in the context of equity offerings, leases and sale of tax-loss carry-forwards and compare these to the level of currently mandated disclosures under GAAP.
Discussion: “Limits to Voluntary Disclosure in Efficient Markets”
Authors: Antle Rick
Published: July 2017

This paper addresses a very important and rich topic for accounting research: what are the incentives for making voluntary disclosures to an efficient capital market when private information has more than one dimension? There are many aspects to this topic, and I will use this discussion as a vehicle for discussing four of them. In particular, this discussion addresses aggregation, coding schemes, auditing, and sender-receiver models. Particular aspects of the paper are used to illustrate various points about these general ideas.