This study tests assertions that Economic Value Added (EVA) is more highly associated with stock returns and firm values than accrual earnings, and evaluates which components of EVA, if any, contribute to these associations. Relative information content tests reveal earnings to be more highly...

In summary, when we avoid the temptation to assume the ceteris paribus opener, and allow for systematic differences in the characteristics of LIFO and FIFO firms, we can view this paper in a different light. Rather that presenting anomalous or puzzling findings, it instead provides evidence of...

Twenty years ago. Martin Shubik suggested that the Shapley value of a game be used to allocate accounting costs. While that suggestion has-spawned a number of cost allocation proposals based on game-theoretic constructs, these studIes comprise only one of several major streams of cost allocation...

Although there exists an extensive and growing literature on how firms should and should not allocate costs, this literature has had only a limited impact on cost allocation practices. A possible explanation is that cost allocation proposals have not always captured essential aspects of the...

This study employs an alternative stochastic model which offers important advantages over those proposed by Cohen and Pekelman, and Biddle and Martin. Rather than optimizing with respect to a single order-up-to level determined at the start of each year, the model permits a second order at...

Few firms take full advantage of the significant tax-cutting opportunities in inventory management. When inventory costs are changing, choosing the appropriate accounting method for inventories can dramatically reduce taxes. Additional savings can be obtained by tailoring inventory ordering...