Announcement
ACCOUNTING AND BUSINESS RESEARCH
A research quarterly published by the
Institute of Chartered Accountants
in England and Wales
Editors: C. W. Nobes, University of Reading R. H. Parker, University of Exeter
CONTENTS
Conjectures on the Influence of the 1920s Betrebswirtschaftslehre on Sweeney’s Stabilized Accounting
Industrial Cost Accounting Developments in Britain to 1830: A Review Article
The Use of Computers in Accountancy Courses: A New Perspective
A Case Study on Interest Adjusted Accounting Using EEI
Corporate Social Reporting: A Rebuttal of Legitimacy Theory
The Relevance of a Segment Cash Flow Statement in Lending Decisions: An Empirical Study
The Effects of Organisational Culture on Choices of Accounting Methods
Book Reviews
Autumn 1989
F. L. Clarke
G. W. Dean
John Richard Edwards
M. C. Er A. C. Ng
John R. Grinyer Abdussalam E. Elbadri
James Guthrie Lee D. Parker
Donna L. Street Keith G. Stanga
Andrew P. Thomas
Subscriptions should be sent to 40 Bernard Street, London WC1N 1LD, England. Subscription rates are
UK Overseas Overseas Airmail
Individual £22 £24 £29
Student £11 £12 £17
Corporate/Individual £32 £33 £3 8
All subscriptions can be paid in US dollars at current rates of exchange.
Announcement
ACCOUNTING AND FINANCE
Vol.29 No. 2 November 1989
“Accounting and Finance”: Statistics
FINANCIAL STATEMENT USERS’ PERCEPTIONS OF FACTORS AFFECTING THE ABILITY OF AUDITORS TO RESIST CLIENT PRESSURE IN A CONFLICT SITUATION
Daryl Lindsay. 1
EVALUATING THE PERFORMANCE OF EMPLOYEES OF CHARTERED ACCOUNTING FIRMS IN AUSTRALIA
C. G. Peirson, R. Simnett and J. H. Pratt 19
COVENANTS IN U.S. PUBLIC DEBT AGREEMENTS
Jennifer Francis 31
COMPANY PARTICIPATION IN THE AUSTRALIAN ACCOUNTING STANDARDS SETTING PROCESS
John Gavens, Garry D. Carnegie and Robert W. Gibson 47
ESTIMATING RETURNS ON FINANCIAL INSTRUMENTS — DETERMINISTIC ANALYSIS
Gary Kelly and Mark Tippett 59
INVESTMENT DECISION CRITERIA USED BY LISTED NEW ZEALAND COMPANIES
Cleveland S. Patterson 73
EDUCATION NOTES 91
FACTORS INFLUENCING CHOICE OF DISCIPLINE OF STUDY — ACCOUNTANCY, ENGINEERING, LAW AND MEDICINE
F. A. Gul, B. H. Andrew, S. C. Leong and Z. Ismail 93
BOOK REVIEWS 103
“Accounting and Finance”: Referees Reports Received 118
Copyright
1989 by The Accounting Association of Australia and New Zealand.
The object of Accounting and Finance is to promote the wide dissemination of the results of research and other scholarly inquiries. Permission is hereby granted to reproduce any of the contents of Accounting and Finance for use in courses of instruction, so long as the source and the Accounting Association of Australia and New Zealand copyright are indicated in any such reproductions. Written applications must be made to the Editor for permission to reproduce any of the contents of the Journal for use in other than courses of instruction —e.g., inclusion in books of readings or in other publications intended lor general distribution. In consideration lor the gran of permission by the Journal in such instances the applicant must nofity the authort(s) in writing of the intended use to be made of each reproduction. Except where otherwise noted in articles, the copyright interest has been transferred to the Accounting Association of Australia and New Zealand. Where the author(s) has (have) not transferred the copyright to the Association, applicants must seek permission to reproduce (for all purposes) directly from the author(s). These conditions apply to all articles published in Accounting and Finance and its predecessor journal Accounting Education from Volume 1.
ACCOUNTING AND FINANCE is published twice yearly in May and November by the Accounting Association of Australia and New Zealand. The membership fee is $28 per year and members receive the journal and any published supplement. Non members, i.e., libraries etc., can take out a subscription for the journal for $40 per year. Editorial correspondence should be addressed to Professor F.J. Finn, Editor, Department of Commerce, University of Queensland, St. Lucia, Queensland, 4067, Australia. Applications for members should be addressed to The A.A.A.N.Z., c/-Department of Commerce, University of Queensland, St. Lucia, Queensland, 4067.
ISSN: 0810-5391
Announcement
the Managing Editor and Editor ACCOUNTING WILLIAM R.KINNEY, JR. REVIEW University or Texas at Austin
Editors
ROBERT LIBBY Cornell University
Quarterly Journal ROBERT P. MAGEE
of Northwestern University
American Accounting Association GERALD L SALAMON
Indiana University Consulting Editors JOEL S. DEMSKI
Yale University
ROBERT W. HOLTHAUSEN
University of Chicago
VOL. LXIV OCTOBER 1989 No. 4
MAIN ARTICLES
Did Firms Undertake Debt-Equity Swaps for an Accounting Paper
Profit or True Financial Gain? JOHN R. M. HAND 587
The Nature and Amount of Information in Cash Flows and
Accruals VICTOR L. BERNARD and THOMAS L. STOBER 624
Auditors’ Confidence in Recognition of Audit Evidence
CINDY L. MOECKEL and R. DAVID PLUMLEE 653
Selection of GAAP or RAP in the Savings and Loan Industry
JOHN W. HILL and ROBERT W. INGRAM 667
Security Price Response to Quarterly Earnings Announcements and
Analysts’ Forecast Revisions
BRADFORD CORNELL and WAYNE R. LANDSMAN 680 NOTES
Auditor Reputation and the Pricing of Initial Public Offerings ….
RANDOLPH P. BEATTY 693
Identifying Audit Adjustments with Attention-Directing Pro¬
cedures ARNOLD WRIGHT and ROBERT H. ASHTON 710
Expert Measurement and Mechanical Combination in Control
Reliance Decisions ROBERT LIBBY and PATRICIA A. LIBBY 729
Predisclosure Information Search Incentives, Analyst Following,
and Earnings Announcement Price Response
STEPHEN I DEMPSEY 748
Selection of Short-Term Accounting-Based Bonus Plans
HARRY A. NEWMAN 758
Unusual Patterns in Reported Earnings JACOBK. THOMAS 773
Announcement
CONTEMPORARY Vol 5/No 2/Spring/printempts 1989
ACCOUNTING
RESEARCH / RECHERCHE
COMPTABLE
CONTEMPORAINE
CONTENTS Articles
Revenue Recognition R. ANTLE and J. DEMSKI 423
Proof that in an Efficient Market, Event Studies Can Provide No Systematic
Guidance for Revision of Accounting Standards and Disclosure Policy for
the Purpose of Maximizing Shareholder Wealth S. SUNDER 452
Discussion of “Proof that in an Efficient Market, Event Studies Can Provide No
Systematic Guidance for Revision of Accounting Standards and Disclosure
Policy for the Purpose of Maximizing Shareholder Wealth” .. N. DOPUCH 461
Discussion of “Proof that in an Efficient Market, Event Studies Can Provide No
Systematic Guidance for Revision of Accounting Standards and Disclosure
Policy for the Purpose of Maximizing Shareholder Wealth” K. T. MCGAHRAN 468
The Effect of a Mandated Accounting Change on the Capitalization Process
R. P. BEATTY and R. E. VERRECC 472
The Impact of Regulations on Financial Accounting Research N. DOPUCH 494
The Valuation of Initial Public Offerings I. KRINSKY and W. ROTENBERG 501
Discussion of “The Valuation of Initial Public Offerings” P. P. BOYLE 516
Discussion of “The Valuation of Initial Public Offerings” J. S. HUGHES 51 9
Timeliness of Financial Reporting, The Firm Size Effect, and Stock Price
Reactions to Annual Earnings Announcements
R. K. ATIASE, L. S. BAMBER and S. TSE 526
Discussion of “Timeliness of Financial Reporting, The Firm Size Effect, and Stock
Price Reactions to Annual Earnings Announcements” G. D. RICHARDSON 553
Evidence on the Predictive Ability of Inflation-Adjusted Earnings Measures
H. SAMI, A. . CURATOLA and J. E. TRAPNELL 556
Stock Market Reactions to the Issuance of FAS 33 and its Preceding Exposure
Drafts R. ESPAHBODI and H. TEHRANIAN 575
Attributes of Industry, Industry Segment and Firm-Specific Information in
Security Valuation S. TSE 592
Discussion of “Attributes of Industry. Industry Segment and Firm-Specific
Information in Security Valuation” B. HORWITZ 615
Discussion of “Attributes of Industry, Industry Segment and Firm-Specific
Information in Security Valuation” M. MCNICHOLS 620
On the Nature of Deferred Income Taxes J. K. CHEUNG 625
Judging the Probability of a Contingent Loss: An Empirical Study
K. E. HARRISON and L. A. TOMASSINI 642
L’évaluation de la probabilité des pertes éventuelles: une
etude empirique HARRISON et L. A. TOMASSINI 669
Audit Delay and the Timeliness of Corporate Reporting
R. H. ASHTON, P. R. GRAUL and J. D. NEWTON 657
A Comprehensive Hypothesis Testing Approach to Dollar Unit Sampling
L. DWORIN and R. A. GRTMLUND 674
Decision Theory Analysis of Audit Discovery Sampling D. R. FINLEY 692
A Note on Bayesian Risk Models of Audit Practice .. .. W. SMIELIAUSKAS 720
Asymmetric Information and the Termination of Contracts in Agencies
N D. MELUMAD 733
Auditors’ Legal Liability. Collusion with Management, and Investors’ Loss
G. MOORE and W. R. SCOTT 754
Operational Matrix Accounting Y. M. BABAD and B. V. BALACHANDRAN 775
Attributes of Articles Impacting Contemporary Accounting Literature
L. D. BROWN, J. C. GARDNER and M, A. VASARHELYI 793
Contemporary Accounting Research: The First Five Years H. FALK 816
Book Reviews/Compte rendu de livres
Editor/Redacteur: Daniel B. Thornton
L. R. Amey, A Conceptual Approach to Management A. A. ATKINSON 827
CONSULTING REFEREES
The individuals listed below served as consulting referees to the current editors of The Accounting Historians Journal through September 15, 1989.
Edward Arrington, University of Iowa
William T. Baxter, London School of Economics (Emeritus)
Dale Flesher, University of Mississippi
Nabil Hassan, Wright State University
Thomas Howard, Arizona State University — West Campus
Jack Ruhl, Case Western Reserve University
Williard Stone, University of Florida (Emeritus)
Anthony M. Tinker, City University of New York
Richard Vangermeersch, University of Rhode Island
