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In this article the author comments on a research paper by John Cumming related to the accounting standard of the Accounting Principles Board (APB) Opinion No. 9 which requires the inclusion and separate identification of extraordinary items in the income statement. Cumming's research attempts to explain apparent vagaries of accounting practice with respect to extraordinary items. The author raises the question of whether the data necessary for explaining differences in accounting method are actually available. Companies listing an event as extraordinary have already disclosed this fact. On the other hand, a company which elected to treat a similar event as ordinary probably did not disclose this. The author comments that Cumming took shortcuts in conducting his research which may cast doubt on his conclusions such as when he prepared a list of categories of extraordinary items that might be segregated.

The article presents a discussion of the research paper by Donald Nester, "The Effect of Aggregating Accounting Reports on the Quality of the Lending Decision: An Empirical Investigation." The author criticizes Nester's methodology for establishing the levels of aggregation on several points associated with Nester's model. These points include the existence of questions concerning the integrity of the conventional account classifications, that there is insufficient data to allow calculations of the 11 ratios, that all footnote and supplemental information are held constant, and that there is a 10 percent materiality rule.

The article presents a discussion of the research paper related to the effect of aggregating accounting reports on the quality of the lending decision. According to the author, the results of this research paper do not necessarily imply that disaggregated statements should be widely distributed, but rather that disaggregated statements are of little more value than aggregated statements to the experts. The research paper provides default rate preferences of a random sample of banks, and the difference among means of the five task variables are tested using different levels of aggregation. The author remarks that psychic value may well result from disaggregated statements, but economic value does not necessarily come from detailed reports.

The article discusses the predictive content of economic indicators for future stock prices. Time series as inputs to stock price forecasting models have lacked systematic empirical research. The time series researched in this paper are those published by the National Bureau of Economic Research as the "1966 Short List" of indicators of business activity. The indicators are examined for their predictive quality in relation to stock prices.

This paper presents an empirical analysis and conceptual extension of the work of Aiken and Hage. This work was accomplished by (1) constructing a causal model of organizational determinants of interorganizational relationships from an integration of two of their published sets of propositions; (2) testing symmetrical and asymmetrical versions of the model through analyses of data collected from 138 health and welfare organizations; (3) revising the model for theoretically inconsistent findings. The revised model of eight independent variables accounts for about 1/3 of the variance in interorganizational relations and calls into question several classical assumptions of organizational theory. [ABSTRACT FROM AUTHOR]

Current investigations on the influence of technology upon other organizational variables have remained exploratory because there is disagreement over the boundaries of the construct and there is a dearth of valid and reliable measures of technology. This study develops a measure of technology that could be used for comparative purpose. It also develops a seven-item scale that provides a valid and reliable measure of Perrow's technology construct. The scale discriminates among the technologies of 15 functional departments in three academic libraries. [ABSTRACT FROM AUTHOR]

The question of specification is examined in this article using the second approach to model evaluation and is not limited to any prespecified subset of possible linkages among the variables. Two powerful multivariate techniques--canonical correlation and the Automatic Interaction Detector--are used to explore for model specification revealed in empirical regularities and data-derived structures. Based on these results, revisions to the basic buyer behavior structure are suggested. Several considerations motivate the use of a stepwise procedure m general and AID [13] in particular for exploratory analysis of specification of a complex model. A stepwise procedure like AID allows the data to tell their own story in terms of empirical first-order interrelationships, plus higher-order interrelationships incorporated conditionally on the patterns of these first-order effects. These results can be quite important in developing valid and parsimonious model specifications. The choice of AID from the arsenal of stepwise procedures is also suggested by the fact that many of the measuring scales are ordinal. This does not mean that procedures based on product-moment correlations are necessarily useless, but corroborative results from procedures explicitly designed to utilize discretely measured dependent variables are potentially very useful. AID procedures, of course, have some shortcomings as well. They do not provide means to take explicit account of jointly dependent variables in the system, so each relationship must be examined without distinction between endogenous and exogenous explanatory variables. AID is sensitive to colinearity in a data set, as the inclusion of one variable in an AID analysis often precludes the entry at later steps of variables highly correlated with it. AID also has a tendency to identify relationships even in random data, so it is most useful in hypothesis generation rather than testing. Data-based model specification is an exa... [ABSTRACT FROM AUTHOR]

The article presents an empirical investigation into the impact of financial leverage on the cost of equity capital as seen in electric utility firms. The theoretical significance of financial leverage on capital costs is reviewed, highlighting several propositional models without research validation. Particular challenges of avoiding irrelevant correlations in cost of equity capital measurements are mentioned from previous studies and a new methodology is presented. Conclusions are offered supporting the basic premise of the theory.

The article presents a response to an earlier article in the September, 1966 issue of this publication titled "The Determinants of Member Bank Borrowing: An Econometric Study," by Steven M. Goldfeld and Edward J. Kane (G-K) and subsequent work by Murray Polakoff and William Silber (P-K) in their March 1967 work "Reluctance and Member Bank Borrowing: Additional Evidence." The authors take issue with the original G-K model, claiming that the empirical evidence was weak and prevented it from being considered a legitimate test of the model. The authors present some alternatives to the empirical specifications and tests.

How closely do averages of yearly high-low prices of common stocks approximate average prices of the stocks throughout the year? Numerous occasions may arise in the conduct of empirical investigations involving price relationships in which the high-low average calculation would be a convenient substitute for the "true" average of price throughout the year, provided no systematic and significant difference exists between the results of the two methods in arriving at average prices. The extent of the differences between the above two averages of price is examined in this paper for a collection of companies first as an aggregate and then individually. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to develop a theoretical framework for analyzing the nature of convertible securities, and then to test it. In the first section, a graphic model is used to describe the essential features of a convertible issue. In the second section, a conceptual scheme for estimating ex ante rates of return is developed. Next, interactions between the key variables under the control of the firm--the coupon interest rate and the conversion price--are discussed in detail. Finally, the terms and conditions under which convertible bonds were sold by a sample of large, listed firms during the period 1961-1963 are described. [ABSTRACT FROM AUTHOR]

The article presents an examination into the mechanisms of stock price changes occurring within the financial markets of the United States between 1947 and 1952, outlining a model of the relationships between past and future performances in price, earnings, and dividends. Additional notice is given to the magnitude of stock price changes over the sample period. General observations are given regarding the market performance and trajectory, as well as empirical research on various stock behaviors, including yearly earnings distributions, dividend changes, and other price relationships.

The article presents an exploration into the relationship between taxation advantages and corporate mergers. An empirical study is presented comparing the relative importance of tax and non-tax motivations in strategic business planning. Hypothetical scenarios where taxation had a significant impact on the decision to sell a company or in the considerations of purchasing another are outlined and case examples are also listed. Additional mention is given to the specifications of alternative non-tax motivations included within the study.

The article presents information on incompatibility between object and methods of human movement theories. The article author describes the ignorance of distinction between seeing things which can move and seeing the movements of things by the researchers. He says that main reason for this ignorance is the incompatibility between the methodologies and objects of the human movement theories. He says that empirical methodology is inappropriate in studying the nature of human movement. He says that human movement theories should incorporate the methodologies which include scientific procedure of measuring, quantifying, documenting, mathematizing , photographing and recording. He says that then research work should be aimed toward objectivity and must exclude any personal judgments. Empirical techniques could not be d in the research work even if it is based on sense experience because it fails in appropriate measurement of the human movements. The scientist say that the empirical techniques could not be applied in measuring human movements because these techniques do not involve choosing of any specific language.

This note will demonstrate that assumptions of empirical studies examining the rate of incorporation of actual price change into the nominal rate of interest are invalid. Further, it will be shown that the use of these invalid assumptions leads to biased estimates of the speed of adjustment. This will be accomplished in three sections. Section I indicates the traditional approach used in these studies. Section II examines the effect of variations in the rate of monetary expansion and real growth on both the real and nominal rates of interest. At this time it will be shown that both rates of interest are effected by changes in these variables. Finally Section III examines the implied bias in the estimates of the speed of adjustment due to the variation of the real rate of interest. [ABSTRACT FROM AUTHOR]

The article discusses a model that could predict purchase-pooling choice and presents empirical research showing that the model is valid. The model works by considering the preferences of business professionals for one financial reporting method over others during a corporate merger. When stocks are used for the merger as payment, there is a choice of purchasing or pooling the stock. The article concludes that income smoothing can likely not be used to explain what impact accounting choices are likely to have in the long-term.

The article presents an index of empirical research in accounting that was created by the Data Bank for Empirical Research in Accounting (DEBRA), which was created by the University of Chicago's Graduate School of Business.

The article presents information on various papers discussed at the conference title "The Conference on Empirical Research in Accounting." The author states that scholar Carl Nelson made an attempt to link all research to empiricism and explains that all research had to have an empirical base. He says that Nelson found that the proper order is not that all research has to be empirical but rather that research has to be tested. The article states that it has become a well-known precept in science that one can not ever prove anything by observation.

The author reflects on accounting procedures and accounting principles. He feels that there is not enough empirical research or evidence which has been interpreted in the decisions related to accounting principles. However, he likes the fact that there are many discussions being held in universities where empirical research in accounting is being discussed and witnessed. He mentions commentary by the U.S. Securities and Exchange commission on deferring action related to deferred taxes and talks about its effect on certified public accountants.

The article presents some additional empirical results that confirm and add upon the short-run results in the study by professors Hans R. Stoll and Anthony J. Curley on issues during a short-run period and over long-run periods. The author states that the majority of investors do not have the opportunity to gather all new issues at the offering price. He explains that in order to study the effects of this contention, the previous samples were examined using post-offering prices. He states that the average price change for the new issues was greater than the price changes experienced by either of the market indicator series but the differentials were clearly reduced.

Recent theoretical and empirical work in portfolio theory has exhibited a natural evolution from the two-moment EV model popularized by Markowitz through the higher moment models to selection on the basis of the entire probability function. This latter approach, referred to as the Stochastic Dominance (SD) approach to portfolio selection, has been shown to be theoretically superior to all of the "moment methods" and has been the focus of an increasing volume of empirical work. In comparison with the EV model, however, the SD approach has one potentially significant deficiency from the standpoint of empirical testing. With a given set of portfolios to evaluate, the computer processor time required for the determination of the EV efficient set is quite short. One can calculate and sort means and variances on several hundred portfolios in a matter of seconds. In contrast, the processor time required for the determination of the SD efficient set for the same number of portfolios can be prohibitive. The purpose of this paper is to examine the factors responsible for the relatively time-consuming nature of empirical tests of SD efficiency and to present the major results of our search for efficient algorithms for conducting SD tests. Section I briefly examines the time-consuming nature of the tests for SD efficiency. Section II presents and evaluates; our most efficient algorithms for obtaining true SD efficiency results. Section lit examines an approach that yields approximate SD efficiency results with further reductions in required processor time. [ABSTRACT FROM AUTHOR]

The article focuses on the fluctuation bias of short-run earnings. It states that normalization approaches can smooth out presumably temporary reported earnings values that are unusually high or low and would otherwise be used in regressions. It mentions that the bias in simpler normalization models appeared to be more important for the steel industry than for chemical for food industries. It states that empirical studies suggest that short-run earnings fluctuation bias isn't serious for the majority of the industry-years examined in the study with the exception of more significant distortions caused by major cyclical or strike difficulties.

The article presents abstracts on financial research topics which include the use of empirical research methods, secondary distributions in capital markets, optimum dividend policy, and a behavioral approach to investment decisions in portfolio management.

Conceptual models and empirical studies of the relationship of shelf space allocation to unit sales are reviewed in this article. This knowledge is organized to support specific recommendations for the practical management of shelf space for profit maximization. [ABSTRACT FROM AUTHOR]

The article addresses the theoretical approach to marketing, responding to a recent publication from Wroe Alderson titled "Marketing Behavior and Executive Action." The author begins by explaining or defining what is meant by the term "theory." In this case, the author defines it as "systematic explanation." A theory is an observable structure that works under a given set of conditions. The author explains that facts are silent; theories help us to explain how forces work together. The author presents "Reilly's Law" as an illustration of an empirical result in marketing, discusses the characteristics of a "good" theory, and defines the functionalist approach to marketing theory.

The article reports on whether or not marketing should be considered a science. The author focuses on discussing the scientific attributes of the methodology used to solve marketing problems. It is suggested that, as marketing theory is based largely on human behavior, prediction models developed to interpret subjects such as the effectiveness of marketing channels and consumer motivation are only capable of mapping theoretical generalizations and not empirical facts. The author proposes marketing professionals and social scientists work together to develop marketing science.

The article focuses on the impact of early economic thought on marketing. The author discusses the significance of marketing in economic systems as expressed by several influential thinkers, including Plato, Aristotle, and Thomas Aquinas. The role and necessity of the middleman, engaged in the buying and selling of goods solely for economic gain, is examined in regards to theories of social efficiency, Biblical teachings, and the views of Physiocrats, precursors to the discipline of classical economics.

Instead of the empirical approach, the direction of chip flow is studied analytically. It has been found that the chip flow angle is a function of the angle of inclination, the normal rake angle and the tool and work materials used. Once the orthogonal cutting data of given tool and work materials are available, the chip flow angles can be predicted analytically. The theoretical values agree with published experimental results. [ABSTRACT FROM AUTHOR]

This paper is concerned with the efficiency of the branch-and-bound technique for solving the production scheduling problem. Since the efficiency of this technique depends on a powerful lower bound, five promising bounding procedures are studied and investigated empirically. This investigation is based on the number of nodes explored and the computational time involved. Several computational experiments are conducted and results reported. [ABSTRACT FROM AUTHOR]

Industrial sociologists and psychologists have in the past concentrated on the one-case study and there has been little systematic attempt to relate behaviour to contextual and organizational settings. A study of the literature on bureaucracy leads to an analysis of organizational structure in terms of a set of variables (specialization, standardization, formalization, centralization, configuration and flexibility) that are capable of empirical verification. Comparative studies will establish organizational "profiles", along these variables, and relate them to contextual variables such as size, ownership and control, charter, and technology. The profiles will also allow comparative studies of individual and group behaviour to be undertaken in clear relation to organizational structure. [ABSTRACT FROM AUTHOR]

It is frequently alleged that the extreme division of labor or simplification of tasks in mass-production industries is a major source of job dissatisfaction. Moreover, according to this view, workers typically express their discontent with the monotony of highly repetitive jobs in high rates of absenteeism and labor turnover, or by seeking transfers to less repetitive work. The findings of the study reported in this article dispute the usefulness of such personnel phenomena as indicators of the degree of employee dissatisfaction with repetitive work. A variety of other job conditions submerged the effect, if any, of repetitiveness on turnover, absenteeism, and transfer rates in two manufacturing companies studied by the author. [ABSTRACT FROM AUTHOR]

The taxonomy of structures of work organizations presented is based on three previously established empirical dimensions: structuring of activities, concentration of authority, and line control of workflow. On the basis of a sample of 52 organizations in the English Midlands, clusters of organizations on these three dimensions are examined and a sevenfold classification of organization structures is developed. These are identified as full bureaucracy, nascent full bureaucracy, workflow bureaucracy, nascent workflow bureaucracy, preworkflow bureaucracy, personnel bureaucracy, and implicitly structured organizations, their characteristic contextual features as to size, technology, dependence on other organizations, and ownership are demonstrated, and a possible developmental sequence is suggested. The results indicate that the concept of a single bureaucratic type is no longer useful, since bureaucracy takes different forms in different settings. [ABSTRACT FROM AUTHOR]

Two models of administration are described: territorial administration, marked by centralized patterns of decision with a high degree of dependence on outside centers of political power; and functional administration, characterized by decisions based on technical and professional norms. Indicators were derived for each of the models, and data collected from the communes and service institutions in the Zagreb area were used to form profiles of the prevalent administrative processes in these organizations. The empirical analysis is an exploratory test of the models presented and confirms the hypothesis that decision-making processes in the communes continue to approximate a centralized, hierarchical, authority structure. [ABSTRACT FROM AUTHOR]

A study was made of how the economic orientation of an organization can influence its innovativeness. The effects of two factors, organizational slack and economic orientation, were studied in an empirical setting. Measures of these two variables were made in a group of hospitals and correlated with the frequency and promptness with which new drugs were tried in the hospitals. Trial of new drugs tended to vary directly with organizational slack and inversely with economic orientation. This is a special case, however, since the primary goal of hospitals is not economic, and the costs of trying of new drugs are minimal. It is suggested that the factors studied may be more important in more typical situations. [ABSTRACT FROM AUTHOR]

Planning is defined as the guidance of change within a social system. A conceptual model is presented and hypotheses are derived as a means for ordering the data of empirical research into planning processes. Four modes of planning are distinguished: developmental and adaptive, allocative and innovative. In addition, forms of thought relevant to planning, institutions for political guidance and conflict resolution, and types of implementation procedures are discussed in terms of their proper level and position within a comprehensive system. [ABSTRACT FROM AUTHOR]

Data from 75 organizations are used in the analysis of the utility of the two typologies in differentiating between organizations on a series of variables. The findings indicate that the typologies are related to each other and, to a lesser degree, to indicators of goal specificity, power structure, relationships between internal segments, and relations with the external environment. Weaker relationships are found between the typologies and indicators of complexity, formalization, major activities, and changes in activities and emphases. It is suggested that future typological efforts build upon each other and upon any empirical relationships from them. [ABSTRACT FROM AUTHOR]

This article applies recent developments in the statistical analysis of multi-wave attitude panels to the problem of evaluating a new product's marketing program. One advantage of this approach is the opportunity to distinguish the effects of marketer-controlled variables from word-of-mouth communication and usage experience. A comparative study of two new brands in the same market shows that effective introductory performance requires media advertising to gain awareness and product sampling to trigger word-of-mouth activity that leads to the formation of favorable attitudes. [ABSTRACT FROM AUTHOR]

Empirical findings on measurement errors in reports by consumers of expenditures made in the past are reviewed, the implications of these findings for survey design are considered, and the needs for future research are discussed. [ABSTRACT FROM AUTHOR]

With factor analysis as a method of estimating parameters, an empirical model of measuring brand loyalty for individual consumers based on frequency and pattern of purchases is presented. Despite some limitations, the method seems superior to stochastic models for generating robust measures at the individual level. [ABSTRACT FROM AUTHOR]

The need for a clearinghouse on computer applications in marketing research is developed and a solution proposed. A possible format for such a forum in JMR is outlined. [ABSTRACT FROM AUTHOR]

This article presents a Monte Carlo simulation method for the solution of a common problem in department stores, the determination of the number of clerks to be assigned to a floor. Based upon empirical observations as well as fictitious data, the method works with five familiar variables to obtain a usable answer. The authors suggest relatively simple adjustments to the model which will provide for a practical application. [ABSTRACT FROM AUTHOR]

Data reported in this paper indicate that staff-line conflicts may be less severe and essentially different in nature than had been previously assumed. Analysis indicates general agreement between line and staff officials concerning both the staff members' current role and participation in organizational decision making. Moderate disagreement was reported only over the amount of increased future decisional participation. [ABSTRACT FROM AUTHOR]

This paper describes, analyzes, and classifies methodologies that have been employed in developing certain management and organization theories. The authors also examine the effects of methodology and value systems on the construction, evaluation, and utilization of theories for management and organization. [ABSTRACT FROM AUTHOR]

In this article the author comments on a research paper related to accounting standards by John Cumming. According to the author, in Cumming's paper the subject matter is so narrowly construed that a more general advance in the discipline cannot be considered a major objective. In the interrelationship between academia and practice, this kind of empirical research is greatly needed. In formulating practice policy the profession needs research and data so the subject is certainly apropos. The author remarks that the researcher has not given sufficient attention to American Institute of Certified Public Accountants materials which have been available on this subject, at least to his dissertation advisor, continuously since early 1972. Use of those materials should have been instrumental in the design of the experiment. The interpretation with the nuances of practice problems has been reflected by a listing of forty-two event categories taken from annual reports. The interpretation with the nuances of practice problems has been reflected by a listing of forty-two event categories taken from annual reports.

The article presents preliminary empirical evidence supporting the econometric model of money demand shifts as asserted by George Kaufman and Cynthia Latta in their report "The Demand for Money: Preliminary Evidence from Industrial Countries," from the September 1966 issue. An empirical review of economic actions surrounding negotiable certificates of deposit within the 1960s U.S. money market is provided in support of the Kaufman-Latta theory.

The author of this article questions many of the accepted "principles" derived from experimental studies in the field of communications research. But he also proposes some basic conclusions for the field of marketing. [ABSTRACT FROM AUTHOR]

The article presents a response to an earlier article titled "Motivational Research Revisited," by N.D. Rothwell in the October 1955 issue of "The Journal of Marketing." In that article, Rothwell dismissed the use of projective tests for various reasons. This article takes issue with her accusations and makes the case for the proper use of projective testing in the field of market research. The author argues that projective testing is just one tool of market research; most projective tests utilized in market research are designed for a specific market application; and projective tests cannot be used in isolation, which the author argues, is not a practice in any credible scientific method.

The article presents comments by the editor, discussing journal objectives, summarizing contents, and offering suggestions for the future of the periodical. The author states that objectives of the "Administrative Science Quarterly" are to advance basic understanding of the processes, theories, and analysis of administrative science. The author states that he would like to include more studies on the effects of cultural variations on enterprise management in the journal, and states that there is a need for articles that pioneer the theoretical analysis of empirical materials.