Accounting research on choices of inventory valuation methods has focused on various consequences of two extreme methods: LIFO and FIFO. The main consequence studies relate to effects of the differences in taxes payable between the two methods on security prices. However, tax consequences appear...

Incentive problems arise in the electric utilities industry as a consequence of the institutional and legal arrangements of the cost-plus pricing regime under which natural and statutory monopolies operate. In the United States, such monopolies operate under a cost recovery system that gives the...

Skilled labour has gained significance as a production factor in the age of information technology, but accounting does not recognize human capital as an asset that contributes to the firm's earning power. This paper suggests a method to develop a latent index to proxy the managerial-skill...

The objective of this note is to caution against expecting golden eggs from a normal goose. It ts probably easier for those who have not actually conducted behavioral research to build high expectations for its policy use and implications simply because it appears the obvious way to do ex ante...

In this paper, we report the design and results of an experiment in human judgment in which decision makers were allowed to choose the information cues they used in making their judgments. The results of this study show that the subjects' choice of information, rather than their processing of...

This study uses the Entropy index of information developed by Claude Shannon and elaborated by Lev and others to measure the aggregation of accounting information. The question of interest is whether Entropy is a measure of communication to assess transmission channel in communication or the...

This paper examines three possible specification problems with the research on information content of earnings disclosure. The first deals with the extent to which contemporaneous prediction errors are good surrogates for revisions of future earnings expectations and, hence, distributions of...