Announcement
ACCOUNTING AND BUSINESS RESEARCH
Number 70 Spring 1988
A research quarterly published by the
Institute of Chartered Accountants
in England and Wales
Editors: R. H. Parker, University of Exeter C. W. Nobes, University of Reading
CONTENTS
The Impact of Search Costs and Asymmetric Information on Current Value Accounting
Company Law Reform and the Board of Trade, 1929-1943
Usefulness of CCA Information for Investor Decision Making: A Laboratory Experiment
The Role of Financial Appraisal in Decisions to Acquire Advanced Manufacturing Technology
Share Tipsters and Fair Advertising
The Role of Payback in the Investment Process
Measuring Harmonisation of Financial Reporting Practice
The Information Economics Approach to Financial Reporting
The Association Between Client Factors and Audit Fees: a Comparison by Country and by Firm
R. K. Ashton
Paul Bircher
Keith Duncan Ken Moores
James Finnie
Simon M. Keane
Robert Kee Bruce Bublitz
L. G. van der Tas
Martin Walker
Mark E. Haskings David D. Williams
Subscriptions should be sent to 40 Bernard Street, London WCIN 1LD, England. Subscriptions rates are:
UK Overseas Overseas Airmail
Individual £22 £24 £29
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All subscriptions can be paid in US dollars at current rates of exchange.
Announcement
the Managing Editor and Editor
ACCOUNTING WILLIAM R. KINNEY, JR.
REVIEW University of Texas at Austin
Editors
ROBERT LIBBY
University of Michigan
ROBERT P. MAGEE
Northwestern University
Quarterly Journal GERALD L. SALAMON
of the Indiana University
American Accounting Association
Consulting editors JOEL S. DEMSKI
Yale University
ROBERT W. HOLTHAUSEN
University of Chicago
VOL. LXIII APRIL 1988 No. 2
MAIN ARTICLES
Product Pricing, Accounting Costs and Use of Product-Costing Sys- 195
terns
RONALD W. HILTON, ROBERT J. SWIERINGA, and MARTHA J. TURNER
219
The Effects of Information Choice and Information Use on Analysts’ 237
Predictions of Municipal Bond Rating Changes
BARRY L. LEWIS, JAMES M. PATTON, and SHARON L. GREEN 255
Initial Attributions and Information-Seeking by Superiors and Sub- 270
ordinates in Production Variance Investigations
PAUL D. HARRISON, STEPHEN G. WEST, and J. HAL RENEAU
293 NOTES
The Economic Theory of Regulation: Evidence from the Uniform
CPA Examination S. DAVID YOUNG
Expectation Formation and Financial Ratio Adjustment Processes 292
CHENG F. LEE and CHUNCHI WU
Initial Attributions and Information-Seeking by Superiors and Sub- 307
ordinates in Production Variance Investigations PAUL
D. HARRISON, STEPHEN G. WEST, and J. HAL RENEAU
Anomolies in Income Numbers: Evidence of Goal Oriented Behavior 321
CHARLES A. P. N CARSLAW
STATEMENT OF EDITORIAL POLICY. 328
Contents continued on Overleaf
Announcement
CONTEMPORARY Vol. 4/No. 2/Spring/printemps 1988
ACCOUNTING
RESEARCH / RECHERCHE
COMPTABLE
CONTEMPORAINE
Contents Articles
Good Judgment in Public Accounting: Quality and Justification 287
C. EMBRY and M. GIBBINS
On Sample Size Allocation in Auditing U. MENZEFRICKE and 314
W. SMIELIAUSKAS
A Hierarchical Approach to the External Auditor’s Evaluation of the Internal 337
Auditing Function W. F. MESSIER, JR. and A. SCHNEIDER
Economic Effects of a Mandated Audit In a Contingent-Claims Production 354
Economy W. R. SCOTT
Discussion of “Economic Effects of a Mandated Audit in a Contingent-Claims 389
Production Economy” M.PENNO
An Experimental Study of the Effects of Elicitation Methods on Review of 392
Preliminary Audit Strategy by External Affairs
J. E. BORITZ, B. G. GABER and W. M. LEMON
Discussion of “An Experimental Study of the Effects of Elicitation Methods on 412
Review of Preliminary Audit Strategy by External Auditors”
M. GIBBINS
Attestation Research Opportunities: 1987 W. R. KINNEY, JR. 416
L’attestation: avenues de recherche, 1987 W. R. KINNEY, JR. 426
Firm Size and the Information Content of Annual Earnings Announcements 438
B.T.Ro
On Interim Information and the Information Content of Firm Earnings: A State 450
Variable Approach A. DONTOH and G. RICHARDSON
Discussion of “On Interim Information and the Information Content of Firm 470
Earnings: A State Variable Approach” D.B.THORNTON
A Comparative Examination of the Time-Series Properties and Predictive Abil- 485
ity of Annual Historical Cost and General Price Level Adjusted Earnings
J. C. MCKEOWN and H. SHALCHI
Discussion of “A Comparative Examination of the Time-Series Properties and 508
Predictive Ability of Annual Historical Cost and General Price Level Ad¬
justed Earnings” w. R. LANDSMAN
Discussion of “A Comparative Examination of the Time-Series Properties and 513
Predictive Ability of Annual Historical Cost and General Price Level Ad¬
justed Earnings” J. A. OHLSON
Implementable Equilibria in Accounting Contexts: An Exploratory Study 515
A. H. AMERSHI and P. CHENG
Discussion of “Implementable Equilibria in Accounting Contexts: An Explora- 564
tory Study” R. A. DYE
An Empirical Analysis of the Expenditure Budget in Research and Develop- 568
ment H. O. ROCKNESS and M. D. SHIELDS
Discussion of “An Empirical Analysis of the Expenditure Budget in Research 582
and Development” J. G. BIRNBERG
Discussion of “An Empirical Analysis of the Expenditure Budget in Research 588
and Development” J. H. WATERHOUSE
The Effect of Unfunded Accumulated and Projected Pension Obligations on 595
Governmental Borrowing Costs B.R.MARKS and K.K.RAMAN
Comment on: “Distinguishing the Two Forms of the Constant Percentage 609
Learning Curve Model” AW.RICHARDSON
Distinguishing the Two Forms of the Constant Percentage Learning Curve 615
Model: A Reply J. T. CHEN and R. P. MANES
Book Reviews/Compte rendu delivres
P. W. Bell, Current Cost/Constant Dollar Accounting and Its Uses in the Manage- 617
rial Decision Making Process R. THAKKAR
L. D. Brown, The Modern Theory of Financial Reporting , , , , R. V. MATTESSICH 620
J. E. Butterworth and H. Falk, Financial Reporting – Theory and Application to 630
the Oil and Gas Industry in Canada A. A. ATKINSON
V. S a ly zy n, Canadian Income Tax Policy: A n Economic Evaluation 638
H. A. KENNEDY
Manuscripts Accepted for Future Publication
Book Reviews Scheduled for Future Publication
AD HOC Reviewers 1987/1988
CONSULTING REFEREES
The individuals listed below served as consulting referees for the Spring 1988 volume of The Journal. The listing includes individuals whose reviews were received by March 31, 1988.
Robert Bricker, The Ohio State University
Barry Cushing, Pennsylvania State University
George Gamble, University of Houston
Dahli Gray, University of Notre Dame
Robert Hagerman, State University of New York — Buffalo
David Jaeger, Case Western Reserve University
Larry Kreiser, Cleveland State University
Peter McMickle, Memphis State University
Brian O’Doherty, East Carolina University
Larry Phillips, University of Miami
Frank Rayburn, University of Alabama
John Shank, Dartmouth College
Peter Silhan, University of Illinois
Ross Skinner, Clarkson, Gordon, & Co. (retired)
Williard E. Stone, University of Florida (emeritus)
Richard Vangermeersch, University of Rhode Island
