bluuebunny/crossref_metadata_2025 huggingface dataset:
Projective Alpha Colour
Authors: Willis Philip
Published: December 2006

Alpha colours were introduced for image compositing, using a pixel coverage model. Algebraically they resemble homogeneous coordinates, widely used in projective geometry calculations. We show why this is the case. This allows us to extend alpha beyond compositing, to all colour calculations regardless of whether pixels are involved and without the need for a coverage model. Our approach includes multi‐channel spectral calculations and removes the need for 7 channel and 6 channel alpha colour operations. It provides a unified explanation of pre‐multiplied and non pre‐multiplied colours, including negative coordinates and infinite points in colour space. It permits filter and illumination operations. It unifies the three existing significant compositing models in a single framework. It achieves this with a physically‐plausible energy basis.

Keywords: projective geometry, homogeneous coordinates, image compositing, alpha blending, alpha compositing, colour representation, filtering, spectral colour, projective alpha colour
Enhancing the Interactive Visualization of Procedurally Encoded Multifield Data with Ellipsoidal Basis Functions
Authors: Jang Yun , Botchen Ralf P. , Lauser Andreas , Ebert David S. , Gaither Kelly P. , Ertl Thomas
Published: December 2006

Functional approximation of scattered data is a popular technique for compactly representing various types of datasets in computer graphics, including surface, volume, and vector datasets. Typically, sums of Gaussians or similar radial basis functions are used in the functional approximation and PC graphics hardware is used to quickly evaluate and render these datasets. Previously, researchers presented techniques for spatially‐limited spherical Gaussian radial basis function encoding and visualization of volumetric scalar, vector, and multifield datasets. While truncated radially symmetric basis functions are quick to evaluate and simple for encoding optimization, they are not the most appropriate choice for data that is not radially symmetric and are especially problematic for representing linear, planar, and many non‐spherical structures. Therefore, we have developed a volumetric approximation and visualization system using ellipsoidal Gaussian functions which provides greater compression, and visually more accurate encodings of volumetric scattered datasets. In this paper, we extend previous work to use ellipsoidal Gaussians as basis functions, create a rendering system to adapt these basis functions to graphics hardware rendering, and evaluate the encoding effectiveness and performance for both spherical Gaussians and ellipsoidal Gaussians.

Categories and Subject Descriptors (according to ACMCCS): I.3.3 [Computer Graphics]: Scientific Visualization, Ellipsoidal Basis Functions, Functional Approximation, Texture Advection
Topological Structures in Two‐Parameter‐Dependent 2D Vector Fields
Authors: Weinkauf T. , Theisel H. , Hege H.‐C. , Seidel H.‐P.
Published: December 2006

In this paper we extract and visualize the topological skeleton of two‐parameter‐dependent vector fields. This kind of vector data depends on two parameter dimensions, for instance physical time and a scale parameter. We show that two important classes of local bifurcations – fold and Hopf bifurcations – build line structures for which we present an approach to extract them. Furthermore we show that new kinds of structurally stable local bifurcations exist for this data, namely fold‐fold and Hopf‐fold bifurcations. We present a complete classification of them. We apply our topological extraction method to analyze a number of two‐parameter‐dependent vector fields with different physical interpretations of the two additional dimensions.

Categories and Subject Descriptors (according to ACM CCS): I.3.3 [Computer Graphics]: Line and Curve Generation I.3.3 [Computer Graphics]: Picture/Image Generation
Creating Face Models from Vague Mental Images
Authors: Blanz V. , Albrecht I. , Haber J. , Seidel H.‐P.
Published: December 2006

We present a novel approach to create plausible 3D face models from vague recollections or incomplete descriptions. This task plays an important role in police work, where composite facial images of suspects need to be created from vague descriptions given by the eyewitnesses of an incident.

Our approach is based on a morphable model of 3D faces and takes into account correlations among facial features based on human anatomy and ethnicity. Using these correlations, unspecified parts of the target face are automatically completed to yield a coherent face model. The system uses a novel paradigm for navigating face space and provides high‐level control of facial attributes as well as the possibility to import facial features from a database. In addition, the user can specify a set of attribute constraints that are used to restrict the target face to a residual subspace. These constraints can also be enforced on the example faces in the database, bringing their appearance closer to the mental image of the user, and thus avoiding confusing exposure to entirely different faces. We also propose a novel approach for adapting the system to local populations based on additional image databases that are converted into our 3D representation by automated shape reconstruction.

We demonstrate the applicability of our system in a simulated forensic scenario and compare our results with those obtained by a professional forensic artist using state‐of‐the‐art software for creating composite images in police work.

Categories and Subject Descriptors (according to ACM CCS): I.3.6 [Computer Graphics]: Methodology and Techniques—Interaction techniques I.4.10 [Image Processing and Computer Vision]: Image Representation—Hierarchical, Multidimensional, Statistical J.m [Computer Applications]: Miscellaneous—Forensic Sciences
A Randomized Approach for Patch‐based Texture Synthesis using Wavelets
Authors: Tonietto L. , Walter M. , Jung C. R.
Published: December 2006

We present a wavelet‐based approach for selecting patches in patch‐based texture synthesis. We randomly select the first block that satisfies a minimum error criterion, computed from the wavelet coefficients (using 1D or 2D wavelets) for the overlapping region. We show that our wavelet‐based approach improves texture synthesis for samples where previous work fails, mainly textures with prominent aligned features. Also, it generates similar quality textures when compared against texture synthesis using feature maps with the advantage that our proposed method uses implicit edge information (since it is embedded in the wavelet coefficients) whereas feature maps rely explicitly on edge features. In previous work, the best patches are selected among all possible using a L2 norm on the RGB or grayscale pixel values of boundary zones. The L2 metric provides the raw pixel‐to‐pixel difference, disregarding relevant image structures — such as edges — that are relevant in the human visual system and therefore on synthesis of new textures.
Occlusion‐Driven Scene Sorting for Efficient Culling
Authors: Staneker Dirk , Bartz Dirk , Wolfgang Straßer
Published: December 2006

Image space occlusion culling is a powerful approach to reduce the rendering load of large polygonal models. However, occlusion culling is not for free; it trades overhead costs with the rendering costs of the possibly occluded geometry. Meanwhile, occlusion queries based on image space occlusion culling are supported on modern graphics hardware. However, a significant consumption of fillrate bandwidth and latency costs are associated with these queries.

In this paper, we propose new techniques to reduce redundant occlusion queries. Our approach uses several "Occupancy Maps" to organize scene traversal. The respective information is accumulated efficiently by hardware‐supported asynchronous occlusion queries. To avoid redundant requests, we arrange these multiple occlusion queries according to the information of the Occupancy Maps. Our presented technique is conservative and benefits from a partial depth order of the geometry.
Compression of Dense and Regular Point Clouds
Authors: Merry Bruce , Marais Patrick , Gain James
Published: December 2006

We present a simple technique for single‐rate compression of point clouds sampled from a surface, based on a spanning tree of the points. Unlike previous methods, we predict future vertices using both a linear predictor, which uses the previous edge as a predictor for the current edge, and lateral predictors that rotate the previous edge 90°left or right about an estimated normal.

By careful construction of the spanning tree and choice of prediction rules, our method improves upon existing compression rates when applied to regularly sampled point sets, such as those produced by laser range scanning or uniform tesselation of higher‐order surfaces. For less regular sets of points, the compression rate is still generally within 1.5 bits per point of other compression algorithms.
Translational Covering of Closed Planar Cubic B‐Spline Curves
Authors: Neacsu Cristina , Daniels Karen
Published: December 2006

Spline curves are useful in a variety of geometric modeling and graphics applications and covering problems abound in practical settings. This work defines a class of covering decision problems for shapes bounded by spline curves. As a first step in addressing these problems, this paper treats translational spline covering for planar, uniform, cubic B‐splines. Inner and outer polygonal approximations to the spline regions are generated using enclosures that are inside two different types of piecewise‐linear envelopes. Our recent polygonal covering technique is then applied to seek translations of the covering shapes that allow them to fully cover the target shape. A feasible solution to the polygonal instance provides a feasible solution to the spline instance. We use our recent proof that 2D translational polygonal covering is NP‐hard to establish NP‐hardness of our planar translational spline covering problem. Our polygonal approximation strategy creates approximations that are tight, yet the number of vertices is only a linear function of the number of control points. Using recent results on B‐spline curve envelopes, we bound the distance from the spline curve to its approximation. We balance the two competing objectives of tightness vs. number of points in the approximation, which is crucial given the NP‐hardness of the spline problem. Examples of the results of our spline covering work are provided for instances containing as many as six covering shapes, including both convex and nonconvex regions. Our implementation uses the LEDA and CGAL C++ libraries of geometric data structures and algorithms.
Differential Representations for Mesh Processing
Authors: Sorkine Olga
Published: December 2006

Surface representation and processing is one of the key topics in computer graphics and geometric modeling, since it greatly affects the range of possible applications. In this paper we will present recent advances in geometry processing that are related to the Laplacian processing framework and differential representations. This framework is based on linear operators defined on polygonal meshes, and furnishes a variety of processing applications, such as shape approximation and compact representation, mesh editing, watermarking and morphing. The core of the framework is the definition of differential coordinates and new bases for efficient mesh geometry representation, based on the mesh Laplacian operator.
The crosslinguistic syntax of sluicing: evidence from hungarian relatives
Authors: Van Craenenbroeck Jeroen , Lipták Anikó
Published: December 2006

Abstract. This paper deals with an elliptical construction in Hungarian that to our knowledge has not received any attention in the theoretical literature so far. It involves the deletion of a relative clause with the exclusion of the relative pronoun and one more remaining constituent. We show that this construction should be analyzed as an instance of sluicing. The theoretical approach we provide for these sentences is an adapted version ofMerchant's (2001)implementation of sluicing in terms of an [e]‐feature that is responsible for the deletion process. Our extension of this proposal involves the modification of the syntactic subcontent of this [e]‐feature. We show that languages where question words are found in the operator domain of the left periphery use a version of the [e]‐feature that attaches to heads whose specifier is occupied by an operator. This predicts that sluicing not only occurs withwh‐remnants but more widely with operator remnants as well. With this proposal we lay the foundation for a crosslinguistic taxonomy of sluicing constructions, and open new avenues towards explaining root/embedded asymmetries in some as yet ill‐understood elliptical phenomena in English.
How FTAs Affect Income Levels of Member Countries
Authors: Sohn Chan‐Hyun , Lee Hongshik
Published: December 2006

The purpose of this paper is to analyse whether FTAs cause the income levels of member economies to converge or diverge. Although existing studies predict the possibility of convergence among FTA members to a certain degree, they fail to provide definitive evidence. By using the concept of accelerating convergence, this study aims to estimate the pure convergence effects of FTAs, separate from the conventional notion of income convergence, so‐called β‐convergence. The neoclassical model of economic growth has been extended to incorporate varying steady states for an open‐economy framework. Applying the system GMM method to a dynamic panel of data consisting of major FTAs – comprising the European Union, NAFTA, Mercosur and AFTA, and encompassing the cases of launching an FTA, expanding membership or deepening FTA integration – we find considerable evidence for the income convergence effect of FTAs.
MORE PENSIONS MIS‐SELLING AHEAD: BY GOVERNMENT OF COURSE1
Authors: Arthur Terry
Published: December 2006

Not only was the infamous Pensions Mis‐selling episode of the 1990s caused directly by government legislation; government has continually mis‐sold on an enormous scale its own pension creations, the state pension schemes. The history of state pensions is a history of broken promises, yet today's pension establishment welcomes the Pension Commission's recommendation for a higher state pension. With this mindset it is hardly surprising that similar approval is given to the Commission's other main recommendation – a National Pensions Saving Scheme, which has all the hallmarks of a fiasco in the making. Furthermore to the extent there is a savings crisis, government is a clear culprit, regularly resorting to low interest rates and the printing press to favour borrowing and not saving. Nor is it surprising that government itself will retain its gold‐plated pension arrangements and in all likelihood will be exempt from these proposals.
Have Per Capita Earnings and Income Converged across New England?
Authors: RAPINO MELANIE , SPAULDING BENJAMIN , HANINK DEAN M.
Published: December 2006

ABSTRACT  This article describes an analysis of recent change in both per capita earnings from employment and per capita income (including that from transfers and nonearnings sources) across New England's counties between 1970 and 2000. Breaking the period into three decade‐long spans (1970–1980, 1980–1990, and 1990–2000), statistical evidence is strong that the region experienced absolute divergence in both earnings and income. However, further statistical analysis that incorporates cost of living, human capital, and other control factors indicates that conditional convergence at the county scale in New England was ongoing rapidly between 1970 and 1990 and appears to have been achieved by 2000.
Accounting for and Disclosure of Business Combinations
Authors: LEE T. A.
Published: December 2006

Based upon an extensive analysis of the published financial reports of one hundred of the largest companies in Britain, this paper comments on the degree of disclosure of business combinations and disposals during the last decade. It reveals a situation of significant variability, apparently requiring a radical change in approach from almost complete flexibility to rational uniformity.
A Review of Acquisition Valuation Models
Authors: FRANKS J. R. , MILES R. , BAGWELL J.
Published: December 2006

The article critically examines two methods of acquisition valuation. The first concentrates on a comparison of the earnings per share of the combined companies with that of the acquiror alone on a present value basis. The second method is discounted cash flow model which is based on several established normative models of share price valuation. The article concludes that because of the difficulties in computing an accurate weighted average cost of capital for the combined group and the differences in cash flow and reported earnings, the earnings per share approach is not valid, and therefore the cash flow approach is to be preferred and adopted.
Programming Solutions to Capital Rationing Problems
Authors: HUGHES JOHN S. , LEWELLEN WILBUR G.
Published: December 2006

Mathematical programming approaches to the choice of capital expenditure projects under conditions of funds constraint have been widely advocated in the literature of finance. The present paper takes exception to such suggestions, and concludes that programming is not only excessively costly and complex for most practical applications, but is frequently incorrect in the decisions it implies. A technique for allocating funds via an adjusted Excess Present Value Index is developed and proposed as a superior analytical framework.
Inflation and Capital Budgeting Decisions: a Comment
Authors: GRINYER JOHN R.
Published: December 2006

F. M. Wilkes has argued that unadjusted cash flows and monetary opportunity costs be used when evaluating capital projects in an inflationary environment (Journal of Business Finance, Volume 4, No. 3). His conclusions are, however, that alternative approaches to net present value are probably necessary, This note examines Wilkes' analysis and argues that his initial model, using net present value techniques, is acceptable in practice on the adoption of fairly conventional assumptions.
Accounting: a source of market imperfection
Authors: BIRKETT W. P. , WALKER R. G.
Published: December 2006

Evidence is presented to show that accounting reports do not necessarily represent the position and performince of firms, and that audit reports are ambiguous indicators of the quality of accounting information. As such, contemporary accounting practices contribute to ‘imperfection’ in the securities market, and hence are likely to lower the efficiency of the securities market in allocating resources to productive uses.
Relevant Criterion Rates in Capital Budgeting*
Authors: GRINYER J.R.
Published: December 2006

This paper develops, using graphical analysis, a series of models relating immediate investment opportunities to various investment opportunity costs and the costs of financing. The block nature of much long‐term finance is recognized in the analysis and the situations in which different concepts are relevant to the establishment of criterion rates, when capital rationing does not exist, are identified.

The author recommends that, in the absence of capital rationing or strongly held expectations of increases in financing costs in the near future, in practice criterion rates he based on the weighted average cost of the marginal set of finance.
Dividends and the Resolution of Uncertainty
Authors: KEANE SIMON M.
Published: December 2006

Investors’ alleged preference for current rather than future dividends cannot, it is argued, be explained by the hypothesis of a progressively higher discount rate for more distant dividends to reflect increasing riskiness. It is more likely to be caused by inadequate standards of disclosure by companies concerning their intended uses of the funds retained by them, as compared with the standards required for external sources of finance, and by the market's consequent lack of confidence in the productivity of the former.
THE REDUNDANCY OF EARNINGS LEVERAGE IN A COST OF CAPITAL DECISION FRAMEWORK
Authors: KEENAN MICHAEL , MALDONADO RITA M.
Published: December 2006

We hope to make clear why earnings‐per‐share financial leverage analysis is inadequate as a management tool for financial structure determination. We argue that under either of the currcntly received cost of capital theories, the “traditional” theory or the “Modigliani‐Miller” theory, earnings leverage analysis as it is used adds nothing to our understanding of the capital structure issue. We maintain further, that for security analysis there are better tools.

Le but de cette discussion est d'éclaircir la raison pour laquelle on a reconnu que “l'analyse des bénéfices par action en rapport au leverage financier’ s'avère être une méthode insuffisante àétablir la structure financière. Que l'on s'appuie sur les théories établies relatives au coüt du capital, sur la théorie traditionnelle ou sur la théorie “Modigliani‐Miller”, ‘l'analyse des bénéfices par action bade sur le leverage financier’ telle qu'elle se présente ne nous apprend rien de nouveau au sujet de la structure financière. Dans cet article, nous affinnons plus loin que de emilleurs moy‐ens existent pour l'analyse des titres.

Dieser Beitrag versucht zu erklären, warum der Gewinn pro Actie‐Leverage‐Analyse unzureichend als Unternehmensleitungsinstrument bezüglich der Kapitalstrukturplanung ist. Nach der traditionellen, sowie der Modigliani‐Miller Theorie der Kapitalkosten, trägt Gewinn pro Atkie‐Leverage‐Analyse nichts zum Verständnis des Kapitalstrukturproblems bei. Es wird auch behauptet, dass es bessere Instrumente für eine Wertpapieranalyse gibt.
LIQUIDITY CONSTRAINTS ON INVESTMENT AND DIVIDENDS
Authors: SAMPSON A.A.
Published: December 2006

Capital market imperfections, in the form of administrative costs of raising finance, suggest that firms might invest less than would be required to equate the marginal rate of return with the opportunity cost of capital. The marginal cost of funds schedule is re‐defined, in the context of a managerial theory of the firm. The theory suggests that firms would restrict dividends as well as investment, in situations where liquidity constraints operate. The theory is tested using a small sample of British firms.

Les imperfections du marché financier, exprimés en fonction des frais administratifs relatifs au financement, suggèrent que les entreprises investissent moins qu'il ne serait exigé afin de réaliser 1′éauilibre entre le taux marginal de rendanent et le coût d'opportunith du capital. courbe du coêt marginal de financement est réconsidérée dans l'ensemble d'une théorie de gestion de l'entreprise. La théorie ainsi proposée suggère que les entreprises limitent à la fois les dividendes et les investissements dans les cas aù rentrent en jeu les contraintes de liquidié. Cette théorie est vérifiée en effectuant un petit sondage des entreprises britanniques.

Die Unvollkommenheiten des Kapitalmarktes wie Verwaltungskosten bei Emissionen, erwecken den Eindruck, dacs Unternehmungen weniger investieren als die Investitionshöhe, wobei der interne Zinsfuss und Opportunitätskosten des Kapitals gleich gestellt sind. Die Kapitalkostenfunktion wird im Rahmen einrr Unternehmensleitungstheorie redefiniert. Deise Theorie zeigt, dass Unternehien nicht nur ihre Dividenden, sondern auch ihre Investitionsausgaben unter Liquiditatsnebenbedingungen begrenzen würden.
DISCOUNTING FORMULAE USED IN CAPITAL BUDGETING — A COMMENT
Authors: WILKIE A.D.
Published: December 2006

In JBFA Vol. 2 No. 2, R.F. de la Mare gives recent references for the distinction between discounting of continuous payments and discounting using continuous discount rates, and gives formulae and a table of values for discounting continuous payments. This comment observes that the distinction has been well known to actuaries for almost 200 years, and gives a simpler formula and an appropriate table of numerical factors.

Dans le Vol. 2 No. 2 de ce journal, R.F. de la Mare fournit de nouvelles informations qui permettent d'établir la distinction entre l'escompte accordé sur les paiements permanents et l'escompte utilisant de constants taux d'escompte. Il donne également une formule et une table des valeurs relatives a l'escompte accordé sur les paiements permanents. L'article nous révèle que cette distinction est reconnue par les actuires depuis presque deux cents ans, et nous présente à la fois une formule plus élémentaire et une adéquate table de facteurs numériques.

In der JBFA, Band 2, Nr. 2, R.F. de la Mare zitiert neue Hinweise auf den Unterschied zwischen der Diskontierung von kontinuierlichen Ausgaben und der Diskontierung mit kontinuierlichen kalkulatorischen Zinssätzen. In der srlben Abhandlung von de la Mare findet man Formele und eine Abzinstabelle für die Diskontierung kontinuierlicher Ausgaben. Die Anmerkung von Wilkie erklärt, dass dieser Unterschied den Versicherungsmathematikern seit fast 200 Jahren bekannt war. Eine einfachere Formel und geeignete Abzinstabelle werden erläutert.
LESSORS' DEPRECIATION AND PROFIT‐AN APPROACH VIA DEPRIVAL VALUE
Authors: Baxter W.T.
Published: December 2006

Lessor accounting raises intriguing problems. Its accepted methods spread depreciation, and thus profit, in yearly doses whose size jumps capriciously and with scant regard to any principle. Yet the economic qualities of an (asset do not change just because it is leased; the only new factor is the odd way in which tax and interest re‐shape its cash flows. If the rules of deprival value are sound for familiar assets, they should be sound too for leased assets. But its arithmetic must expand to cover flows (tax and interest) that are not usually coupled with depreciation. Two results then follow: after‐tax profit tends to be constant throughout the lease, and the full size of tax bounty becomes clear.
CURRENT COST DEPRECIATION: A PROGRAMMING PERSPECTIVE
Authors: Atkinson Anthony A. , Scott William R.
Published: December 2006

Professional accounting bodies in the United Kingdom, the United States and Canada are requiring disclosure of current cost of capital equipment and related depreciation. In this paper the ability of a normative programming model of the firm to produce depreciation allocations in accordance with economic depreciation is examined, and the model's depreciation allocations are compared with current professional pronouncements. It is found that if the firm can costlessly adjust capacity period‐by‐period, current cost depreciation is on strong theoretical grounds. Otherwise depreciation should be based on value‐use.
BOND RISK PREMIUMS, FINANCIAL DATA, AND THE EFFECT OF MARKET SEGMENTATION
Authors: Kolari James W. , Apilado Vincent P.
Published: December 2006

The main question which this empirical study addresses is: Are the fmancial determinants of bond risk premiums different for industrial versus utility bonds (i.e. market segmentation)? First, a multiple discriminant analysis of eight financial variables is conducted to verify an underlying argument that divergent operational characteristics lead to different financial profiles. Linear regression analyses are then performed cross‐sectionally for the years 1975 to 1979. The results indicate that (1) the market segmentation effect materially affects the determination of bond premiums, (2) the business cycle is an important factor, and (3) utility premiums are less sensitive to fmancial risk than industrial bond premiums.
PROFITABILITY, EARNINGS ANNOUNCEMENT TIME LAGS, AND STOCK PRICES
Authors: Kross William
Published: December 2006

This research addresses (1) whether firms with lower (hgher) than expected earnings fgures released those figures to the public later (earlier) than expected and (2) whether there is a reaction by the capital market to the timing of the earnings announcement. The results indicate that later than expected earnings announcements are likely to contain worse news than early announcements. Also the stock returns of late reporting firms appear to be lower than that of early reporting firms in the days surrounding the earnings announcement date.
SOME FORMAL CONNECTIONS BETWEEN ECONOMIC VALUES AND YIELDS AND ACCOUNTING NUMBERS
Authors: Peasnell K.V.
Published: December 2006

This paper reports a number of results concerning the relationship between accounting numbers and economic values and yields. Some of the results have appeared previously in the literature and some are new. They have been collected together in a common analytical framework in order to demonstrate their formal, mathematical character. It is shown that present value can be obtained by discounting almost any profit numbers; that accounting rates of return define a discount function directly analagous to the term structure and the internal rate of return; and that the internal rate of return can be expressed as a linear weighted sum of accounting rates of return.
THE ROLE OF THE PAYBACK PERIOD IN THE THEORY AND APPLICATION OF DURATION TO CAPITAL BUDGETING
Authors: Boardman Calvin M. , Reinhart Walter J. , Celec Stephen E.
Published: December 2006

The payback period has been a widely used capital budgeting tool in the analysis of capital projects. It has come under criticism for its inablility to consider all the project's flows in a present valued context. The purpose of this article is to present the duration measure in a capital budgeting framework and show how it is related to the payback period. The relationship is shown analytically and empirically. As a result, the payback period assumes a new identity which goes far to overcome the objections historically levied against it.
THE APPLICATION OF ANALYSIS OF VARIANCE TO INTER‐FIRM COMPARISON RATIOS
Authors: Lawrence S.R.
Published: December 2006

There is a lack of consensus about the utility and validity of information provided through firms participating in an Interfirm Comparison (IFC). The disagreement is a result of different notions about the purpose served by IFC schemes. The unresolved question is how to use the same information for two purposes ‐ the appraisal of operating efficiency and the guidance of longer‐term planning decisions. The application of analysis of variance to the results of an IFC helps to clarify the nature, and improve the utility, of the comparative data by identifying factors accounting for variation in performance among firms grouped by multiple characteristics.
VARIABLE TRANSACTIONS COSTS, THE CAPITAL ASSET PRICING MODEL AND THE CORPORATE DIVIDEND DECISION: A COMMENT
Authors: Schnabel Jacques A.
Published: December 2006

This comment addresses some econometric issues raised by Theobald's model of capital market equilibrium in the presence of variable transactions costs. Theil's results on specification error analysis in the absence of relevant explanatory variables are invoked. It is shown that for Theobald's model to be consistent with the empirical findings of Black, Jensen, and Scholes, more stringent requirements must be satisfied.
SIGN TESTS FOR ACTUAL INVESTMENTS WITH LATTER PERIOD NET CASH OUTFLOWS
Authors: Grimlund Richard A. , Capettini Robert
Published: December 2006

Easily calculated sign tests are presented for analyzing the net present value characteristics and the number of internal rates of return of two important practical cases of cash flow patterns with multiple sign changes. Using two tables which summarize the test procedures, it is possible for a decision maker to economically proceed from simple to more advanced procedures (as needed) when analyzing these cash flow patterns. Also considered is a deceptive feature of certain investment projects which have cash flows with multiple sign changes and a unique internal rate of return. A sign test is presented for ruling out this potential problem.
THE EVALUATION OF TRADED OPTIONS PRICING MODELS IN AUSTRALIA
Authors: Castagna A.D. , Matolcsy Z.P.
Published: December 2006

The aim of this paper is to report the results of an Australian empirical study which examined a number of testable implications of the original Black and Scholes (B‐S) Option Pricing Model, and a variant of the model, that incorporates the dividends paid on the underlying security. The results do not support the notion that the B‐S model prices options “correctly” within the Australian Options Market.
THE SEC OVERRULING OF SFAS 19 AND THE BEHAVIOR OF SECURITY RETURNS
Authors: Benjamin Wahjudi P. , McEnroe John E.
Published: December 2006

In August 1978, the Securities and Exchange Commission (SEC) announced its intention to employ Reserve Recognition Accounting, and also issued Accounting Series Release No. 253 which in substance overruled Statement of Financial Accounting Standards No. 19 (SFAS 19), “Financial Accounting and Reporting by Oil and Gas Producing Companies.” There are relatively few cases where accounting promulgations have been reversed, and these cases merit careful analysis. Accordingly, this research employs an identical methodology and sample of an earlier study (Benjamin and McEnroe, 1981) in order to ascertain the security market effect of the SEC's overruling of SFAS 19. The a priori expectation would be that the SEC intervention should cause a reversal of any security market effects found in the prior study.
PROPOSALS FOR NEW ACCOUNTING STANDARDS FOR FOREIGN MONETARY ITEMS
Authors: Oxelheim Lars
Published: December 2006

The purpose of this study was to propose and evaluate different methods for measuring and reporting exchange gains and losses on corporate monetary items. Focusing on the Swedish experience, the empirical validity of three laws/monetary relationships from economic theory were examined for currencies in the Swedish ‘basket’ for the period 1974–1981. The basic overall finding of the study was that a method based on the Purchasing Power Parity Theory appears generally superior to methods based on either Fisher's Open Relationship or the Interest Rate Parity Theory, and also superior to the currently favoured use of the closing rate.
THE RATE OF RETURN FROM INTERIM FINANCIAL REPORTS AND THE ALLOCATION PROBLEM IN FINANCIAL ACCOUNTING
Authors: Jarrett Jeffrey
Published: December 2006

Estimation theory in accounting explains how accountants allocate noncash expenditures to estimate such concepts as the firm's long run rate of return. If the accountant's goal in estimation is some high degree of precision, the usefulness of financial reports can be evaluated in light of that goal. In this study, the property of unbiasedness is identified with respect to the purposes of interim financial reports. Furthermore, the magnitude of the bias in estimates from financial reports is measured.
THE ACCOUNTING SERVICES MARKET: THEORY AND EVIDENCE: A COMMENT
Authors: Williams David J. , Turpie Keith D.
Published: December 2006

This Comment discusses tests on the extent of oligopolistic pricing and product differentiation in the accounting services market made by Pound and Francis recently in this journal. It is argued that the results obtained from that study are misleading, primarily because the testing does not include data on price mark‐ups.
THE ACCOUNTING SERVICES MARKET: THEORY AND EVIDENCE: A REPLY
Authors: Francis J.R. , Pound G.
Published: December 2006

David J. Williams and Keith D. Turpie criticize the methodology used by the present authors in the original paper (Pound and Francis, 1981). Part of this criticism is specious because it rests on the untested assertion that an alternative approach would be superior. The remainder of their Comment, however, does indicate that the exact purpose of the statistical tests was not explained as clearly as it should have been. Some elaboration is provided here concerning the tests and the manner in which the tests relate to the oligopolistic nature of the Australian accounting services market for publically traded corporations.
A NOTE ON THE EFFECT OF INSTITUTIONAL TRADING ACTIVITIES ON THE REAL VALUE OF THE FINANCIAL TIMES ALL‐SHARE INDEX
Authors: Witt Stephen F. , Dobbins Richard
Published: December 2006

The impact of financial institutions' equity trading activities on share prices is examined using inflation‐adjusted data. The regression results show that institutional purchasing pressure tends to raise prices and institutional selling activity tends to lower prices, but that no single financial sector may be identified as price leader within the UK equity market. These results are in complete agreement with those obtained in a previous study where the data were not corrected for inflation.
MARKET ANTICIPATION OF CORPORATE FAILURE IN THE UK
Authors: El Hennawy R.H.A. , Morris R.C.
Published: December 2006

In practice it seems that the identification of impending failure is a much more gradual process than appears to be implied by discriminant and similar models. This paper, after examining the methodological problems associated with such research and reviewing previous work in this area, reports the behaviour of share price relatives of 20 British companies which failed between 1960 and 1971. It appears that on average analysts began to perceive a fum's financial difficulties some five years prior to bankruptcy, which would seem to support the view that the market refers to a broad data set in assessing a company's solvency position.
A NEOCLASSICAL MEASURE OF PROFIT: AN EXTENSION FOR UNCERTAINTY
Authors: Scapens Robert W.
Published: December 2006

This note extends the economic model used by Scapens (1978 and 1979) to develop a neoclassical measure of profit. A certainty equivalent formula in a multiperiod framework is used to introduce uncertainty into the analysis. It is demonstrated that the measure of economic profit developed in earlier papers is not crucially dependent upon the assumption of certainty.
THE GEARING ADJUSTMENT: AN ECONOMIC PROFIT PERSPECTIVE
Authors: Scapens Robert W.
Published: December 2006

This paper uses an economic model to develop a conceptual basis for the gearing adjustment used in current cost financial statements. It is shown that it is necessary to adopt the entity view of the business enterprise and some very restrictive assumptions; in particular, it is assumed that the business maintains its current cost gearing ratio. Even with restrictive assumptions, however, the SSAP 16 gearing adjustment cannot be derived. Furthermore it is concluded that gearing adjustments could be completely avoided by reporting current cost operating profit together with total monetary holding gains.
SHAREHOLDER RETURNS TO USA ACQUIRED FIRMS IN FOREIGN AND DOMESTIC ACQUISITIONS
Authors: Wansley James W. , Lane William R. , Yang Ho C.
Published: December 2006

This research employs the residual methodology to examine whether gains to shareholders exist through international diversification. Under the assump tion that bid premiums (abnormal returns) are a proxy for expected gains in a merger, the magnitude of abnormal returns to acquired f m s in foreign and domestic mergers is determined using the market model. Any significant difference is imputed to expected gains from international diversification. Results indicate that although differences appear to exist, these differences are insignificant when method of payment and merger type are considered.
A NOTE ON INVESTMENT DECISION RULES BASED ON UTILITY FUNCTIONS
Authors: Ang James S. , Chua Jess H. , Woodward Richard S.
Published: December 2006

Many investment decision models are formulated on the basis of certain assumptions regarding investor's tastes combined with the assumed objective of expected utility maximization. The rules are often expressed in the form of a finite number of moments of the returns distributions, depending on the specific utility function restrictions imposed. For example, mean/variance decisions have been derived using the assumption of a quadratic preference function. Borch (1969) and many others have demonstrated the ambiguity of mean/variance decision rules based on this specific utility functional form. In this note, Borch's findings are extended t o all investment decision rules based on the assumption of any finite order utility function for a general class of risk averters.
ON THE “UNANIMITY” LITERATURE AND THE SECURITY MARKET LINE CRITERION: A NOTE
Authors: Booth Laurence D.
Published: December 2006

This paper challenges recent results showing that under uncertainty firms can use the security market line criterion to evaluate investments in monopolised product markets. The paper looks at the simplest certainty case and shows mathematically and graphically that no unanirriously supported investment criterion can be derived to evaluate projects with monopoly power. Hence, they cannot possibly be derived on the more complicated uncertainty case, even given the restrictive assumptions necessary to derive the SML. Unanimity breaks down with monopoly power.
METHODOLOGICAL IMPLICATIONS OF NON‐NORMALLY DISTRIBUTED FINANCIAL RATIOS: A REPLY
Authors: Barnes Paul
Published: December 2006

This reply extends the contention that fhancial ratios cannot be used comparatively with any safety. It is shown that the obstacles posed by Horrigan for residual analysis may easily be overcome.
THE RELATIONSHIP BETWEEN DURATION AND ECONOMIC DEPRECIATION: A NOTE
Authors: Brief Richard P.
Published: December 2006

This note derives an expression for duration in terms of the economic depreciation of a capital budgeting project or financial instrument. By showing how the decline in the value of an asset or liability influences duration, additional insight into the characteristics of this measure is obtained. The new formula shows that duration equals a standard value, which is adjusted for depreciation or appreciation.
A MICROECONOMIC ANALYSIS OF THE AMEY/SOLOMONS DEBATE
Authors: Ashton R. K.
Published: December 2006

This paper analyses the Solomons/Amey debate in terms of the traditional theory of the firm. The scope of the paper includes a clarification of the working capital issue, and in particular, the appropriate charge which should be recorded in the periodic income statement submitted by management. The analysis then examines Amey's proposition that Solomons is confusing the investment decision with the operating decision and concludes that Amey's position is correct. The reporting framework which would induce divisional management to act both in the short‐ and long‐run interests of a group is examined and there is adiscussion of the market strategies which may be dictated by the divisional periodic accounting reports.
ACCOUNTING RATIOS TO LOCATE TAKE‐OVER TARGETS
Authors: Rege Udayan P.
Published: December 2006

This paper uses both the univariate and multivariate techniques to discover whether liquidity, leverage, payout, activity, and profitability ratios can distinguish non‐taken‐over, domestic taken‐over and foreign taken‐over firms in Canada. The results indicate that the three categories of firms emanate from the same population, and the article concludes that even if a connection between historical accounting information and the firm's expected cash flows were to be hypothesized, the semi‐strong efficient capital market would ensure that accounting information would be impounded in the prices of securities of target firms.
FORECASTING CORPORATE REVENUE AND PROFIT: TIME‐SERIES MODELS VERSUS MANAGEMENT AND ANALYSTS
Authors: Kodde David A. , Schreuder Hein
Published: December 2006

This paper reports on the forecast accuracy of nine models which have been used to describe the time‐series of corporate revenues and profits. It also compares the performance of these models with that of management and financial analysts. All comparisons are carried out not only on the basis of prediction errors, but also by an analysis of the forecasting bias involved, and the specification of uncertainty. The data pertain to a representative sample of companies listed on the Amsterdam Stock Exchange.
AUTOCORRELATION IN MARKET MODEL RESIDUALS
Authors: Copley Ronald E. , Cooley Philip L. , Roenfeldt Rodney L.
Published: December 2006

Autocorrelation in market model residuals affects the estimate of market risk measured by beta. Correction for autocorrelation can substantially change the estimate of beta for some common stocks. In view of the importance of beta estimates in financial research and investment practice, an examination is undertaken in this paper of the prevalence of autocorrelation and two of its causes. The evidence indicates that negative autocorrelation affects estimates of beta for a large number of stocks. In addition, negative autocorrelation is most prevalent among thinly traded and low‐priced stocks.
AN ECONOMIC ANALYSIS OF VALUE TO THE OWNER: A REPLY
Authors: ASHTON R.K.
Published: December 2006

Wright's comment criticises a previous article by this author on two grounds: (i) the deprived owner of the asset was not allowed to replace it in the short run: and (ii) only two variants of the concept were considered. This reply argues that the original analysis is consistent with asset replacement in the short run and that the concept of value to the owner and its variants have been developed for special situations. When the concept is applied to accounting issues, such as periodic income measurement, it is shown to be artificial and at variance with the facts of the real world.
CAPITALIZATION OF INTEREST, MATERIALITY JUDGMENT DIVERGENCE AND USERS'INFORMATION NEEDS
Authors: Morris Michael H. , Nichols William D. , Pattillo James W.
Published: December 2006

A review of the international literature surrounding the concept of materiality yields no existing standards, no consensus of opinions, and little consistency of judgments. This study examines the initial application by auditors in the United States of SFAS No. 34 to comparative financial statements. The study finds that, relative to net income or net plant, the amount of capitalized interest judged to be material covers the same range of values as the amount judged to be immaterial. Such overlap suggests that the basis for disclosure or nondisclosure is not at all clear and that comparison of one firm's results with another may be hampered. The suggestion is made that the most immediate solution to this problem is disclosure and communication of the materiality guidelines used by the preparer of the (inancia1 statements.
THE VALUE OF A FORWARD CONTRACT IN FOREIGN CURRENCIES
Authors: Yang Ho C.
Published: December 2006

Under some assumptions a valuation model for a forward contract in foreign currencies is developed. The model produces the value of the contract which is consistent with the value of other types of forward contract; the initial value is zero, and subsequent values are the present values of the differences between the forward rate when the contract is written and current forward rates.
ACCOUNTING REGULATION: AN ALTERNATIVE PERSPECTIVE: A COMMENT
Authors: Laughlin Richard C. , Willmott Hugh
Published: December 2006

This paper presents a critique and development of a previous paper by Laughlin and Puxty. It argues that their worldview perspective is an advance on the established self‐interest perspective, but is critical of its abstraction of worldviews from their formation within institutional contexts. An alternative interpretation of accounting regulation is offered which relates accounting regulations and standards to the location and investment of the providers and users of accounting information within existing politico‐economic institutional arrangements.
INTER‐INDUSTRY DIFFERENCES IN THE RESPONSE OF TRADE CREDIT TO CHANGES IN MONETARY POLICY
Authors: Chiplin Brian , Wright Mike
Published: December 2006

Trade Credit is an important source of finance for firms and with increasing emphasis being placed on monetary policy in recent years in many western countries it is important to examine thk relationship between trade credit and monetary policy. This study uses a large firm‐based data series to examine various hypotheses concerning the impact and determination of trade credit flows. The study demonstrates significant differences in the exogenous variables across industries and casts considerable doubt on the validity of earlier aggregated studies of the issue. It is also found that whilst there are dif‐ ferences between industries, tight monetary policy does not seem to be offset by an extension of net trade credit.