Standards Overload and Differential Reporting.pdf

7/23/2019 Standards Overload and Differential Reporting.pdf

1/28

Southern Methodist University

SMU Digital Repository

W*&%# Pa+! C*2 Sc$**' * B%!

1-1-1984

Standards Overload and Diferential ReportingN. C. ChurchillSouthern Methodist University

M. F. van BredaSouthern Methodist University

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R!c*!! C%a%*C$c$%'', N. C. a 0a B!a, M. F., "Saa O0!'*a a D%5!!%a' R!+*%#" (1984). Working Papers. Pa+! 64.$7+://%#%a'!+*%*3..!/b%!_*&%#+a+!/64
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2/28

s

n s t

r t

Da

s

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as

752

75

STA

NDAR

DS

OVE

RLOA

D ND

DIF

FERE

NTIA

L RE

PORT

ING

W

orkin

g P

aper

84

-111

by

N C

Ch

urc

hill

and

M

F.

v

an Br

eda

N C.

Ch

urc

hill

Dist

ingu

is he

d Pro

fess

or of

Acco

unti

ng

Di

rect

or, Ca

ruth

ns

ti tu

te of O

wner

M an

aged

Bus

in es

s

Edw i

n L.

Co

x

Sch

oolof B

usin

ess

S

ou th

ern

Met

hodi

st

Univ

ersi

ty

Da

llas

, Texa

s 752

75

M

F

. va

n Bred

a

Ass

ocia

te Pro

fess

or

of

Acco

unti

ng

Edwi

n L .

C

ox

Sch

oolof B

usin

ess

South ern Methodist

University

Dal

las, T

exa

s 7527

5

This

p

aper

rep

rese

nts a

dr

aft of

w o

rk

in

prog

ress

b

y

th

e

a

uth

ors

and

i s

bein

g

se

nt t

o you

f

or

infor

mat

io nan

d

r

evie

w.

Re

spo

nsib

ility

for t

he c

onte

nts

re

sts

so

le ly

wi

th

the

a

utho

rs. T

his w

ork

ing pa

per

may

not be

rep

rodu

ce d

o

r d is

tr i -

b

ute d

w

itho

ut

the w r

itte

n co

nsen

t

of

th

e a

utho

rs. P

lea

seadd

ress

a l l

co

rres

pon

denc

e to

N

C C

hur

chill

or M

F

van

Bred

a.


3/28

Standard

s Overload

and

Diff

erential

Reportin

g

Pu

blic accounta

nts and m n

gers of small

and private

busines

ses

h ve co m

-

plained

tha t

the standards

set

by

the

FASB

(a)

a

re und

uly burdenso

m e

for

them

to meet, an

d

(b) yi

eld

r

elat ively

minimal

benefits t

o users of

repor

ts

o

n

sm

all and

priv

ate

businesses.

Users of

these

r

eports,

on

the

other h

and, appear

reluctant

to see the stan-

dards

rel

axed in

ny w

ay The debate

on

sta

ndard ove

rload has

reached some-

wh

t of an impass

e theref

ore.

This

r t ic le suggests that

i t m

ight be possible

to esc a

pe

th is

impas

se

i f th epart ies

to

the

debate:

(1)

would different ia t

e carefu

lly between

(a) fo

rms of disc

losure,

(

b)

al tern

at ive

me sure

ment

bases,

and

(

c) levels

of

a

ttes tat ion,

(2

)

would

focus on

the diffe

rent ty

pes of i

nformation that

various

users

alreadyposs

ess abo

ut

the re

porting

company

which theyob

tain

ind

ependently

of

a

regulated

accounting

report,

and

(3) w o

uld

con

sider the

relat ionship

s between the

us

ers

o

f financia

l

i

n -

formatio

n

and

the

reportin

g co mpa

ny

rather

than the

size of

t

he comp

any or

whether

i t is public

or

privat

e.

The f i r s t

section of

t

he

paper

pr

ovides

a background

to

t

he

complaints

about

standa

rds

overload.

The second

section deve

lops th e

concept ofmargina

l

demand fo

r regulated

accoun

ting i

nformation

and suggests t

hat

t

h is ma

rginal

demand varies

with the d

istance of

a user fr

om t ~ reporting

compan

y The

balance

of the

paper expl

ores how these

two conc

epts mi

ght form

the

basis

of a

new ap pr

oach to standards

overload.

The r t icle

co nc

ludes with a poss

ible

soluti

on to the

problem but

one that requir

esad

ditional empirical

resea

rch.


4/28

BACKGRO

UND

T

he AICPA

In

1974

the AICPA, in response

to

num erous

complain t

s

th

at accounti

ng

pronounce

ments w ere i

mposing a standard

s overload

on many

compani

es,

crea

ted

the W

erner Com m it

tee on

G

enerally

Accepted

Accounting Prin

ciples for Smaller

and/or Clos

ely-Held

Businesses.

Thi

s c

ommittee in

i

t s

1976 report

recommended

th

e

inst i tu

t ion

of reviews

and compilations

by

acco

untants as

analternativ

e

t

o the stand

ard

audit.

The Derieux

C om m

ittee on Small-

and M ed

ium-Sized Firms

which followe

d in

1978 recom

mended the appoi

ntment of

a

spec

ial comm

ittee to

s

tudy alternativ

e

mean

s

of pro

viding re l ie

f fr

om

accou

nting

standards wh

ich are no t

cos

t effec

tive

for sm

all bu

sinesses .

The

re

sul t

was the Scott

C o mm ittee

on Accountin

g

St

andards

Overload which

by 19

83 was convinced

by a l

l the

evid e

nce co

nsidered

that accounting

standar

ds overload

i s a major

problem

a

nd

that i

ts b

urden

fa l l s

dispropo

rtionately

on small, non

public b

usinesses a

nd

the

CPAs who serve

them.

They concluded

,

inter a lia that

to th

e extent that simp

licity

and

flex

ib i l i

ty is not feasible

d

ifferen ti l

disc

losure altern

atives (base

d on the

cri te

r ia

in

the

Wern er C o

mmit tee Report) as

well as diff

erentia l

m easure

men t

alternativ e

s

be

consid

ered.

The C o

mmi t t ee also

referre

d account

ants back to

the erner Committe

e' s solution

not

ing

that

small, nonpublic

en

titie s c

an

gain

some

m

easure of re l

ie f

f rom

acc

ounting

sta ndard

s

overload

by issuing

com

piled ,

reviewed

, or au

dited finan

cial statem

ents prepared

on a

comprehen

sive

bas

is of acco

un ting other

than GAAP

in

a

ccordance wit

h

e

xisting

dis

closure and

measure

ment standards

and wi

th

t

he existin

g reporti

ng requiremen

ts for CP

As.


5/28

3

T

wo

basic

f

actors em e

rge from

this br

ief

introdu

ction.

F i

rs t

accoun

tant

s are aware

that th

e

prob

lem

of standards

overload

wil l have to be

ad

dresse

d

thro

ugh differen

tial

at testa t ion

as well

as differen

tia l disc

losure

and measurement.

The

f i rs t

re sponse of

the

AICPA

in

fact

was

not

to

define

what should b

e disclosed

o

r

to

dictate ow

i t

sho

uld e

measured but

to enab

le

accoun

tants to

provide

u

sers wit

h

vary

ing

le

vels

of assuran

ce

about

t

he fa i r -

n

ess of the in

formation. I t

i s not clea

r

th o

ugh th

at users

understand how

th

ese

th

ree approaches

in terr

elate .

S

econd

i t is app

arent

ju

s t f rom th

e nam es

of

t

he committee

s tha

t s tan

dards ov

erload

has

been associated

with cer

tain types o

f

compan

ies;

specif i

cal ly private

companies

closely-held

companies

and

small companies. Th

e

conclusio

ns of s

uccessive comm

ittees reinforce

this

pe

rception. By

cont

rast

re la t ively

l i t t l e

has

been said about

how

users

their character

ist ics and

th

eir

need

for inform

ation d

iffer except by

implic

ation.

The

FASB

In

November

19

81

the

FASB

i

nst i tuted a su r

vey en title

d

Fi

nancial

Report

ing by Priv

ately Owne

d C om panies : Prac

tices

and V iews

as a par t ia

l response

to the

conclusio

ns of these vari

ous AICPA committ

ees.

One major

resul t to

emerge was

evidence

of a

conflict of views

between

users and ac

countants.

A

majo

rity of the

343 pu

blic

accountan

ts who responded

f

el t that there

was in d

eed a stan

dards ov erlo

ad that adv

ersely affect

ed the small

and

priv

ate

company .

Th

is cor

responds wit

h the con

victions

of the Scott C o mm

ittee of

course.

A

si

zeable

majori

ty of the 193

non-manager

users

of

fina

ncial

informa

tion

w

ho responde

d were against

any fo rm

of alte

rnat ive

di

sclosure.

These

users

indicat

ed that the

types of dec

isions that

they took and

the kin

ds of


6/28

4

in f

ormat

ion

that they

u

sed in

the

se deci

sions w

ereun

aff ecte

d by

th esi

zeof

the

co mp

any or

by t

he

n

ature

of

thei

r

hold

ings

in t

he

compan

y, i an

y.

Th

e 283

man

agers who

re spon

ded expr

essed

less

di

ssatis

factio

n

t

han

pub-

l i c

acco

untant

s regar

ding sta

ndards

overlo

ad

but

a signif

icant

mino

rit y

h d

reser

vation

s abou

t

pres

ent

ru

les

for

ac

counti

ng fo

r lea

ses

nd tax

es.

Th

e acc

ountan

ts and

theu

sers clearl

y diffe

red

i

n the

ir

op

inions

a

nd ma

n-

ager

s we

re somew

here in

the m

id dle.

Acarefu

l rea

ding

of

th e

s

urvey

yie

lds

,

other

conf

licts

n

d qu

estion

s. F irst

to

what

exten

t are

use

rs

op

posed to

chan

ges

in disclo

sure

rules

, in

measu

rement

ru l

es ,

in

levels

o

f at tes

ta t ion

,

or in

a ll

th ree?

Do

the y

even

understand

the

difference

between

the

three

concep

ts ? Fo

r e

xampl

e,

we

are

to

ld

in

the su r

vey:

U

sers

belie

ve that

fina

ncial

inform

atio n

has

gre

ater r

e l iab i

l i ty

in

mos

t

sit

uat ion

s be

cause

of

a pu

blic ac

count

ant's as

sociat

ion

with th

e fi

nan-

c ia

l st

ateme

nts

(FASB

, p. 1

2). A

ttesta

tion rathe

r

than

discl

osure

ap pear

s

to

be

the issue

h

ere.

So

me le

nders

accep

t less

f i

nanci

al

in

forma

tion fr

om a sm

aller

co mp

any

th

an from

a larg

er one

,

partic

ularly

i f the

com

pany n

d i t s

o w ne

rs are f

inan-

c

ial ly

stro

ng

(FAS

B,

p

. 12)

.

In othe

r words

, the

r

e l iab i

l i ty

of finan

cial

sta

temen

ts

ap

pears to

be le

ss im

portan

t

whe n

the rep

orting

pa

rties

ar

e them-

selve

s

relia

ble .

A

lmo st

[no use

rs] we

re cr i t

ica l

ofspec i

fic

m ea

surem e

nt or

disclo

sure

re q

uirem

ents. In

stead,

the

us

ers focuse

d

their

dissat

isfact

iono

n the leve

l

of

CP

involvement

Many

of

the

m urged

requ

iring

a min

imum

l

evel

of r

eview

by

ou

tside

CP s to

in

creas

e re l

iabi l i

ty . . . .

(FASB

,

p.

17

). Agai

nat te

s ta t io

n

rath

er th a

n disclo

sure appe

ars

to

be

the

un

derlyi

ng c

ause

for conce

rn.


7/28

* o

llow

up

withsele

cted

lender

s ind

icated

that

not l

llend

ers un

de

rstood

t

hat 'acco

unt

for ' w

as intend

ed

toem b

race

the po

ssibi l

ity

of d iffe

r

e

ntm

easur

ements

as

well as

dis

closur

es

FA SB,

p. 1

4).

A

secon d

poin

t

is

tha

t, i

n sp it

e of

theappare

nt c

onfusi

on

at the con

cept

ual le

vel, i t

appea

rs th

at

at the p

ractic

al

le

vel

som

e u

sers ar

e m akin

g

defin

ite cost-b

enefit

trad

e-offs

bet

ween t

he three

con

cepts.

Ba

nks, for

in

st

ance,

rep

ort

that w

hi le

th ey

have the

bi l i ty

to

obta

ini

nform

ation from

a

borro

wer

apa

rt f rom

fina

ncial

statem

ents

t

hey pr

efer

to o

btain m

ost f i -

nan

cial

in for

mation

from

financ

ial sta

temen

ts F

ASB,

p.

11). Th

is i s

ha

rdly

surprising

because annual

reports are free to users.

Summ

ing u

p, th

e su rve

y reve

aled

that th

ere

are , on t

he o n

e han

d,

users

receiv

ing

inform

ation

as a fre

e g

ood w

ho do

not

see th

e need

for

d

iffe r

ent ial

st

andard

s

b

ased o

n co m

pany c

harac

terist i

cs. T

hey also

do

no

t a

pp ear

to

dis

tingu

ish

clear

ly

betw

een

dis

closur

e,

me

asurem

ent, an d

att

esta ti

on. T

here are

,

o

n the oth

er ha

nd, a

ccoun

ting fir

ms wh

o app

ear

to

be expe

riencin

g very

rea

l

sta

ndard

s overl o

ad. A

nd in

betw

een is a

m anag

ement w

ho wer

e abou

t equ

ally

div

ided rega

rding

the

desir

abi li t

y ofdi

fferen

t stan

dards

.

The

F

ERF

Mo

re recen

tly t

he

Financ

ialExecu

tives

Resear

ch Fou

ndatio

n has

p

ublish

ed

the re

sults

of i t s own

su

rvey

enti

t led F

inanc

ial Repor

ting

Requ

iremen

ts o

f

Sm

all Pu

blicly

Owned

Compa

nies. The

co

nclusio

ns

of th i

s stud

y,

w

hich de

lib

erat

ely exclu

ded

pri

vate co

m p an ie

s from

i t s pur

view,

ar

e gene

rally s

uppor

ti ve

o

f

the

positi

ons rea

ched

y t

he FA

SB

althou

gh the

FERF

doe

s carry

the

se

con

clu

sions

furthe

r w

th resp

ect

to

diffe

ren tia

l

r

eporti

ng.

T he F

ERF sur

vey cl

early

shows

tha

t

m anage

ment a

ssocia

tes G

AAP

wit h m e

a-

sure

ment an

d,

les

s

cle

arly,

with

att

es ta ti

on . Th

ey pe

rceive

m easu

rem e n t

to

be


8/28

th

e bailiw

ick of account

ants, to involve

pr

imarily techn

ical

issue

s,

and man-

gement wa

nts no ch nge in

this a

rea. On wh t

basis they reach th

is co n

clu-

sion is

unclear

sin

ce they c

laimno

tec

hnical co

mpetence in accounting

mea-

su

rement.)

Disclos

ure

is

perceived

to

be

dist

inc t

f rom G P a

nd to

af

fect

the

m anage

ment

o

f the firm

more dir

ect ly especially

w

hen i t impacts

nega

tively

o

n the i r

own compan

y.

Differ

ent ial disc

losure, espe

cially

in areas

such as

segm

ent reporting

, deferred

taxes,

and

capita

lized lease

s, unli

ke differe

ntia l

measuremen

t, is supported

by the majority

of responden

ts.

US

ERDIST N

CE

T

he

prima

ry focus o

f the overlo

ad deba

te,

thu

s

far , has been

on

the

typ

e

o

f comp nie

s

in

volved.

I t s quite

plausibl

e,

th

ough,

t

hat

wh t

is

i

mportant

are the

re

lationships

betw

een th

e

people

wh

o

rely

on financial i

nformation

to

make de

cisions nd th e

company

o

f in

terest .

In

deed,

as wil l

be show

n,

t

hese

rela tionsh

ips are

vi ta l to an understan

ding of

standa

rds

overlo

ad.

The f i r s t factor

to n

ote is

that

users vary widely

in their

involveme

nt

in the

affair

s

of

a comp

any and on a t leas

t two

dimen

sions:

(1)

the frequency

of inte

ract ion

howoften

the

ind

ividual

in

teracts

with

th e c

ompany daily

,

w

eekly,

monthly

?

(2)

th e

scope of interact

ion i

s i t broa

d nd

d

eep l i

ke

that o

f

a chief

execu

tive office

r

o

r re la t iv

ely narrow

and shallow

l ike that

of

n em pl

oyee on

the producti

on l ine?

Define

then

a

user to

be

close

to

a compa ny when

the

user's

involvement

w

ith

the co mpany

is frequent

and

dee

p. Conversely,

d

efine a

user to be dis-

tant wh

en the

i

nteract ion

is

infre

quent,

is

sha

llow, or

is

bot

h. This

con-

cept

o

f distanc

e,

a

s wil

l be s

hown,

e

nables

one to predic

t

both

the

nature of


9/28

7

the information a user might

require

and the intensi ty of the demand for

that

information.

INFORM TION V IL BILITY

Distance affects information

availabil i ty . Typically when accountants

think of

information

they think

primarily

of the transaction information

that

is collected,

processed,

aggregated, and distributed by the accounting

system.

This f i r s t

type

of

information

is available in raw form to a number of em-

ployees in management and

in

accounting. I t is available as one moves up

the

hierarchy

in

increasingly

more and more summarized form

to

management

as

bud-

gets , forecasts , cost reports , and product

l ine

prof i tabi l i ty reports. A for-

mal,

highly aggregated

version of this transaction

information goes to

share-

holders

and other outside users at

set periods

of time in the form of quar-

te r ly and annual financial reports.

There are numerous other sources of

information

available in and about

organizations, though. One source of

information

is user involvement with the

affairs

of

a company For

example,

a warehouse clerk

learns

about the company

from

booking

del iver ies ,

a banker from

i t s

flow

of deposits

and

withdrawals,

and a

creditor

from the speed with which

payables

are

paid.

Such information

might be

labeled interaction information.

This second type of

information

is

the

most direct and is sometimes called

firsthand

information. This is the

target information for management

i t se l f

A

thi rd

kind of

information,

often called

indirect

or

secondhand

informa-

t ion, flows in a relat ively informal

way to

certain users. At luncheon or

the

country

club, the owner of a company and i t s banker and lawyer, and

people

who

do

business

with i t discuss economic

matters

and the

business.

Through

this

process,

these outsiders

are

able to

f i l l in a

picture

both of the

business


10/28

and

ow

ner/manager

who ofte

n guara n

tees

t

he lo

ans.

This

m

ight be more true of

s

mall ba

nks in sma

ll tow n

s

than

large

banks in l

arge town

s.

Yet

even in

the

la t ter , clu

bs,

associati

ons,

and profess

ional meetin

gs, are part

of a

network

of

re l

ationsh ips

whic

h have an

informati

on

dim

ension.

The abov

ementioned indirect

inform

ation fl ows

directly fro

m

the

organiza

t io

n

o

utwards.

T

here

are

a n

umber

of

sources,

though, whic

hare indepen

dent

of the

organizatio

n. Thes

e

secondar

y sources

in c

lude

bro ke

rage houses,

business

an

alysts ,

banks,

mer

ger specialis

ts , and th e l ike - -

organizatio

ns

which

have

g

reat expertise in

p

articula r

ind

ustries

an

d

play

a

key

role

in

collec ting

seemingly

unrelated

b its

of

information

and

disseminating

them

in

a

coherent

and use

ful form Informa

tion

must theref

ore be

re c

ognized

as c

oming

fro

m many

sou

rces

and

v

arying widely

in the

directness of

the p

ath i t takes

.

User

distance cle

arly affects info

rmation

availabi l i t

y . T

he

clo

se user

i s by definit io n

invo

lved with

the co mpany

on a regular

and deep b

asis and is

th ereby

deriving

a

gre

at deal of firstha

nd,

interaction

know ledg

e

abo

ut the

com pany

In many cases that

sa

me close

u

ser

wil l

also

be in

pos

session of

re l

a tively

disaggrega

ted reports

and be

gett

ing se

condhand inform

ation

from

manageme

nt

- - i f th

ey are

not manag

ers themsel

ves.

C

onversely,

those

who are

not

in volved in

the

aff

a i r s of

the

business or

are not dea

ling

wit

h the

compa-

ny

on a

day-

to-day

basis wi

ll (a) receive l

ess infor

mation, (b) rece

ive less

detailed

informa

tion, and

(c)

re

ceive i t

less fre

quently .

INFO

RM TION

RELI B

ILITY

Information

availab

ili ty is c

losely

re

lated

to informati

on redundan

cy

which migh

t be

de

fined as the

availabi l i t

y

o

f the

same informati

on f

rom two or

m o

re

sou

rces.

A t f i r s t glance,

red

undancy w ould appear

to be

was

teful of

so

cie ty s

res

ources. On

th

e other hand, s

ources of informa

tion ca

n, and do,


11/28

9

fa i l and society has an interes t in

ensuring

the flow of

information even at

the expense of

redundancy.

Redundancy in other words

helps

ensure

information re l iabi l i ty

to a

user. One of the roles of auditing

is to enhance the

performance of

the

for

mal financial

information

system. To

the extent

that a user

receives

finan

cial

information

from a variety of

sources this

role might not be as neces

sary.

There

are

many

banks who

have told

selected clients

that a

ful l

audit

is unnecessary because they

possess suff icient information

about

the

company

from

other

sources. The F SB survey provided further evidence of

this

prac

t ice .

Audited reports

are necessary for

those users who are

essent ial ly

depen

dent on a single source for their

information

about the company Such users

are by

defini t ion

distant from the company Close users by contrast have

a

wide

variety

of information sources at their

disposal and

might feel

the

costs of a ful l audit to exceed the costs. In

short distance affects the

perception

a

user has

of

the re l iabi l i ty of information.

DECISIONS

I t also appears possible for distance to affect the nature

of

decisions

that users take and thereby their

overall

requirements for information. Note

f i r s t that information is valuable only because i t can be used to improve

decisions. I t is important therefore to examine

information

in the

l ight

of

the decision

which

i t

attempts

to

support.

Numerous

types of

decisions are

made daily of course but they may al l be usefully categorized for

the

pur

poses of

this

discussion in terms of their frequency.

At the one end of the spectrum

are decisions

that are taken

infrequently.

These

often

involve

broad and

usually

long-range issues and

are

sometimes


12/28

1

described

as s tra tegic

decisions. E x

amp l e s

of such

dec

isions on the

part of a

.user m

ight

in

clude

buyi

ng

o

r sell in g

sto

ck in a partic

ular company

or making a

major

loan

to

such

a compan

y. At the

other extreme

there

are decisi

ons

r

e-

la t ing

to

a company

that

a

user

might

make

frequently.

The

decision

of

a

sup-

pl ier to make an

other sal

e to

th

e

reporting

compan

y on credit

migh

t

e an

ex-

m

ple of a

decision

that

is taken

freq

uently.

Frequently made d

ecisions

typically

concern

sm

all s

egments of a c

om pany

and

g

enerally require

info

rmation that

is

v

ery

current rathe

r

de

tailed a

l -

though not prec

isely

accurate. Such

inform

ation by

i

t s

nature

cannot be au-

di ted.

Less

frequent decis

ions

generally r

equire

le

ss detailed

an d less f re -

quent inf

ormation

but informa

tion that i

s

b

roader and

o

ften

more

accu

rate.

In

short

d ifferent type

s

of

de

cisions requir

e

differe

nt ty pes

o

f info

rmation an d

d

ifferent

levels of a tte

s ta t ion.

By de

fin it ion a user

w

ho is

taking frequen

t decis

ions

re

lated

to a com-

pany

i s

or

should

be

a

close user.

By

contrast

t

he

us

er who

only takes in

-

frequent

decisions r

elated t

o

a com

pany

such as the d

ecision to se l l

i t s

stock is a

re la t ivel

y

distant

user. Of

co

urse close

users

als

o

take i

n r -

qu

ent

deci

sions; distant us

ers though r

arely take fre

quent

decisions

.

I t

appears the

refore that

the

nature

of

deci

sions that various

users take

usu-

ally re

la tes to their di

stance f r o m th e

company.

IM

PLIC TIONS

Several things

flow

from

the

observations

bove and

specif ically

f r o m

the

concept of

user distan

ce and

i t s

rel

ationship

to informa

tion ava i l

ab il i ty and

decisi

on chac terist i

cs.


13/28

Marginal

emand

The impact of

user

distance f i rs t on information availabil i ty and second

on the nature of decision taken can be combined to show that the marginal

de-

mand for mandated accounting

information

relat ive

to

a given

decision

and for

at testat ion

of

that

information

must

vary with

distance

too.

1)

Distant

users

rarely make the

sort

of

frequent decisions

about a com-

pany that

close

users

do. Hence,

they

have

l i t t l e

requirement for

information

sui table

for

making these

frequent

decisions.

On

the other hand, they are

in-

volved in the less

frequent,

s trategic

type

decisions, but since they are dis-

tant

they

do

not

have an abundance

of information

at

their

disposal

from

in-

formal sources. Thus, one might expect a high demand for mandated and a t tes t

ed information suitable for their decisions - - and this is a

role

formal ac-

counting information can

fulf i l .

2) Close users

make a greater number and a greater variety

of decisions

than

distant

users but possess

significant

amounts

of

suitable

information

from

a

variety of sources.

Thus,

their

marginal demand for mandated

account-

ing information

can

be expected to be

quite

low for

a l l

types of decisions.

In

short,

i f the above

analysis

is

correct,

the

only

demand

for

mandated

accounting information

should

come from distant users and the

only type

of

accounting information

demanded

wil l

be that supporting infrequent decisions

such as major loans to companies, or the purchase or sale

of stock

shares. A

corollary to this is that the strongest demand for audited

information

will

come from

distant

users. The FASB s survey and that of

the

FERF provide

evi-

dence supporting a l l

these

points.

Relationships

Specific company

character is t ics

may

now

be seen to be largely i r re le

vant.

Close

users of

a l l types

have

a low marginal demand for mandated


14/28

12

accounting

information, while distant users of a l l types have a potentially

high

demand

for

mandated accounting

information

related

to

the sorts

of

deci-

sions taken infrequently and a low marginal demand

for

accounting

information

suitable

for decisions

taken

more

frequently.

The

arguments

of

the

previous

section that

the

marginal demand

for

accounting

information

is a function of

the distance

of

a user from the reporting company

applies

to any company re-

gardless of i t s size

or

complexity. In part icular , therefore, i t is most mis-

leading to speak of a possible

solution

to standards overload in terms of com-

pany size implied

in

the expression big

GAAP

versus l i t t l e GAAP.

Equally, the

nature of the user is i rre levant . For instance, a bank in a

small

town

who carries the

accounts

of

both the

reporting

company

and i t s

own-

er who

is familiar

with the

product

or services

of

the company and who might

be

familiar

with

many of i t s customers,

is a close user. That same bank car-

rying the accounts

of

nonresidents, who maintain their personal accounts else-

where, and whose products

are sold

out of town, is a distant user.

The question i s one of relationships. I t i s the network

of relationships

that

exist

between a reporting company and the user that determines the user 's

distance. This is a concept

that

appears

to

be completely new

to

the debate

on

accounting

standards overload but one that can

lead

to an objective way of

examining the need and desirabil i ty

for

different reporting

requirements.

A PROGRAM

The

preceding

analysis

of

relationships

suggests

a

possible

program

for

the solution of standards overload:

The f i r s t step would be a careful study of user requirements which might

reveal that some accounting disclosure standards can be simplified

for

al l

companies

because those users who

do

desire

this information already

have

i t


15/28

or have

easy

access to i t while a l l other users do not require i t

at

a l l .

Such studies

could

lead

to the simplification

of

disclosure and measurement

rules .

13

The

second

step

would

involve

research

into

user

benefits

and

producer

costs

and might further reveal that the present

single,

all-purpose report

is

not suitable for any of the classes of users - - specif ical ly

i t

may be

margin

al ly effect ive

in

ful f i l l ing the requirements of the distant user

and quite

ineffic ient in serving the needs

of

the close

user.

A

thi rd

step would involve finding circumstances where differentia l

ru les ,

available to al l companies, regardless

of

their

size

or

ownership,

would be dependent only on

the various

relationships

the

company has with dif

ferent classes of users. These

rules

would

differentia te

between levels

of

disclosure, measurement, and attestation. The

ICP

has

already permitted

differention in attes ta t ion

with

the

creation

of compilations

and

reviews

alongside the audited report . The F SB

has

set precedents for different iat ion

in disclosure and measurement

in

the areas of segment and inflation accounting

among others. Why not extend this on a more systematic basis?

The FASB s survey gives some preliminary evidence that

different iat ion

based on relationships is already occurring informally since the

majority

of

the small banks who responded do think that small companies can report differ

ent ly

without reducing the usefulness

of their

financial

statements to

the

bank concerned (FASB, p. 14). This was not true

of the responses

of

large

banks

- -

which

tends

to

suggest the

concept

of

distance

is

already

at

work.

The FERF s survey

provides

additional evidence since small public companies

and

small private companies were found

to

differ in

their beliefs regarding

standards

overload.


16/28

14

The intent of

this

paper, though, is

not to

suggest a

specific

solution

to standards overload but

to

outline a conceptual framework within which a

solution

might

be achieved.

In part icular , i the

analysis has been correct,

further

debate

on

the

issue that

is

based

on company

characteris t ics ,

such as

th i r being

small

or closely held,

i s

doomed to failure.

Instead the

debate

must

shi f t

to

consider

a)

the value of additional information to users

and

b) the value of

attes ted

information to

users,

in the

l ight

of the relat ion-

ships that

exist between

them and the

reporting

company In

short ,

in

l ight

of

their distances from the company


17/28

15

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18/28

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D

w ight M.

Grant an d G eo rg

e Hempel


19/28

80-902

Hedgin

g Unce

rtain Foreign Exchan

ge

Posit ion

s,

by

Mark

R. Eaker and

Dwigh t

M. Gra

nt

80-110 Strat

egic

Port fol

io

M anagement

in

the

Multibu

siness

Firm

: An

Imple

mentation Status Re

port,

by Rich

ard A. Bettis and W

illiamK.

Hall

80-111

Sourc

es

of Perfo

rmance

Differences

in Related an

d Unrela

ted

Dive

rsi

f ied Firm

s,

b

y Richar

d

A.

Bett is

80-112 The

Inform

ation

N e

eds o

f Bus

iness

With

Special

A

pplica tion to

Managerial De

cision

Ma

king, by

Paul Gray

80-11

3

Diversi

fication Strategy, Ac

counting Determ

ined

Risk, and Accounti

ng

Dete

rmined

Return,

by Richard

A.

Bett i

s

and

William K

.

Ha

ll

80-1

14 Tow

ard Ana

lytically Prec

ise Defi

nitions of M

arket Value and

Highes

t

and Best U

se, by Kerry D.

Va

ndell

80-115 Perso

n-Situation

Interactio

n:

An Expl

oration of C o

m pet ing Mod

els

of

Fit ,

by William

F. Joyce, John

W. Slocum,

J r . , and Mary

Ann

Von

G linow

80-116 Corre

lates of

Climate

Discrepancy

,

by

William F.

Joyceand John

Slocum

80-117

Alternative

Perspe

ctives

on

Neighborh

ood D

ecline, by

Arthu

r

P.

Solomon

and Kerry

D

Vandell

80-

121

ProjectAbandonm

ent as a

Put O

ption: D

ealing

wit

h the Capital

Investmen

t

Decis

ion and Ope

rating Risk

Using

O

ption Pricing T

heory,

by

John

W. Kensinger

80-122 The

Interrela

tionships Betwee

n Bank

ing Re

turns

and Risk

s, by G e

orge

H

Hempel

80-123

The

Environment

F

or

F

unds Managem

en t D

ecisions In Coming

Year

s,

by

G eorge

H

H

em pel

81-100

A

Test

of

Gouldn

er's Norm of Re

ciprocity

in

a

C ommerc ia l

Marketing

Researc

h Setting , by Roge

r Ke

rin,

Tho

mas

Barry, and Al

an

D u

binsky

81-200 ' 'So

lution

St

rategies and Algo

rithm Behavio

r in Large-

Scale Network

Codes, by

RichardS. B

arr

81-201 T h

e S U

DecisionRoom

Project, by

PaulG

ray, Julius Aronofs

ky,

Nancy

W. B

erry, OlafHelm

er, Ge rald R. K

ane, and Tho

mas E.

Perkins

81-300

Cash Dis

counts t

o

R

etail

C

ustomers:

An Al

ternative

to Credit Card

Perfo

rm ance,

by

Michael Levy

and

Charles Ingene

81-400 M

erchandising

Decisions

:

A New

View of

Planning and

Measur

ing

Perfo

rmance,

b

y Michael Le

vy and

CharlesA. In

gene

81- 500

A Methodology

for the

Form

ulation and E

valuation of

Ene-

rg y

Goals

and Policy

Al

ternatives fo

r

Isra

el , by

Julius Aro

nofsky, Reuven

Karni, and Harry

Tan

kin


20/28

8

1-501

Job Rede

sign:

Im

provi

ng

the Q

uality

of

W ork

in g

Life ,

by John W

.

S

locu m,

Jr .

81-600

Man

ageria

l

Uncer

tainty

and Perform

ance,

by

H. K

irkD

owney a

nd

John

W.

Sloc

um ,

Jr .

8

1-601

Com

pensat

ing Ba

la nce,

Ratio

nality

, a

nd Opti

mality

, by C

hun

H. Lam

an

d Ken

neth J .

B

oudre

aux

81-7

00

Fe

deral Inc

om e Taxes,

Inf

lat ion

a

ndHoldin

g Per

iods for

I

n co m e

Pro

ducing

P

roper

ty,

by W

il liam

B. B ru

egg ema

n , Jeff

rey

D.

F

isher

,

a

nd

Je

rrold

J . S

tern

81-80

0

The Ch

inese-

U.S. S

ym posi

um On

Sys

temsAna

lysis,

by Pau

l G

ray and

Burt

on

V. D e

an

81-

801 T

he Sen

sitivi

ty of

Pol

icyEla

st ici t i

e s t

o the T

im e P

eriod

Examin

ed

in

the

S

t. L

ouis E

quatio

nand

Other

Tests

, b

y

Fra

nk

J.

B

onello

and

Willi

am R.

Re

ichens

tein

81-900

Forecasting

Industria l

Bond

Rating

Changes: A

Multivariate

Model,

by J

ohn W.

Peav

y, I I I

81 - 1

10 Impr

oving

G

ap M an

agemen

t

a

s a

Techn

ique fo

r R

educin

g In

teres

t

Rate

Risk

, by

Donald

G

. Sim

onson

and

G e

o rge

H. Hem

pel

81

.-111

Th

e

Visi

ble

an

d Inv is

ible H

and: So

urce

Allo

cation

in

th

e Ind

ustria

l

S

ector,

b

y Ri

chard

A. Bet t

is

andC.

K. Pra

hala d

81-11

2 T he

Signi

ficanc

e of

Pri

ce-Ea

rnings

Rat

ios o

n Portfo

lio

Re

turns,

by

J

ohn W.

Peav

y,

I I I an

d D

avid A. G

oodman

81- 1

13 Fu

rther E

valuat

ion

of Fi

nancin

g

Co

sts

for M

ultin

ationa

l

Sub

sidiar

ies,

by

Catherine

J . B runo

and

M ark R.

Eaker

8

1-114

Seven

Key Rule

s for

Suc

cessfu

l St

ock

Marke

t Specu

lation,

by D

avid

Goodm

an

81-1

15 The

Pr

i

c

e-Earn

in gs R

elative

a

s anI

ndicat

or

of In

vestm

en t

Retu

rns,

by

Davi

d

ood

man

a

nd John

W.

Pea

vy, I

I I

81-11

6 Stra

tegic

M an

agemen

t

fo

r

Whol e

saler

s

:

An

Env

ironme

ntal

Mana

ge ment

Persp

ective

,

by W

illiam

L. C

ron an d

Val

arie A.

Zeith

aml

81

-117

Seq

uentia

l Infor

mation

D

issem

inat i

onand

Rela

tive

Marke

t

Ef

ficien

cy,

by Chr

istoph

er

B. Barry

and

Rober

t H. Jenn

ings

81

-118

Mod

eling Ear

nings

Beh

avior,

by Mich

ael F

. van

B

reda

8

1-119

T he

Dimen

sions

o

f S

elf-M

anagem

ent,

by D

av i d

oodman

an

d

L

eland

M.

W o

oton

81-120

T h

e Pr

ice-Earn

in

gs

Rel

ativ

e s

A New

Tw is t

t o th

e Lo

w

M

u l t

ip le S

t rat egy ,

byDavi

dA

. Goodma

n an

d John W.

Peavy

, I

I I

8

2-100

R

isk

C

onsid

eratio

ns in Mo

deling

Cor

porate

Strate

gy,

by

Ri chard

A

.

Bet

t is


21/28

8

2-101 Modern ,

Financial T

heory, Corpora

te Strategy,

and Public

Policy:

Three C on

und rums, by

Rich

ard A. Bettis

8

2-102

C

hildren's

Advertising:

The

Differentia

l Impactof

Appeal

S

trategy,

y Tho

mas E. Barry

and

R

ichard

F. Gunst

8

2-103 A T y p o lo g y

of Small Busine

sses: Hypoth

esis

and Prelim

inary

S

tudy,

y Neil

C. C

hurchilland

Virginia L. Lew

is

82-104

Imperfect Information,

Uncertainty,

an d

Credit

Rationing:

A

Comment

an d

Exte

nsion, y Kerry

D.

Vandell

82-200 Equi

librium in

a

Futures Mark

et, by Jero

m e Baesel

and Dwight

Grant

82-201

A Market

In

dex

Futures

Contract and Por

tfo lio Selection,

by

D

w ig ht

Gran

t

82-2

02

S

electing O

ptimal Portfol

ios with a

Futures

Market in a

Stock Index,

by

D w

ight Grant

82-203 Mar

ket

In dex

Fu

tures Contracts:

Some

Thoughts on D

elivery

Dates,

by D w ight Grant

82

-204 Optimal

Seque

ntial Futures Trad

ing, b

y Jerome

Baes

el

and D wight

Gr

ant

82-300 The Hypothe

sized Effe

cts of Abili

ty in

th

e Turnover

Process

,

y

Ellen

F.

Jacko

fsky an d L a

w ren ce H. Peters

82-301 Teaching

a F

inancial Planning

Languag

e as th

e

Principal

C om

puter

L anguage

for MBA's ,

y Thomas E.

Perkins

and Paul Gray

82-

302

P

ut Budgeting

Back In

to Capita

l

Bu

dgeting,

by Michael F

. van B

reda

82-

400 Informati

on

D

issemination

and Port

folio Choice

, y Robe

rt H. Jennin

gs

and C

hristopher

B. Bar ry

8

2-401 Reality

S hock: The Lin

k Between

Socializ

ation

and Org

anizational

C o m m

itm ent, y

R og er A. De

an

82-402 Reporting

on

the A nn u a l Repo

rt, y Gail

E. Farrel

ly an d Gai

l

B

.

lv

right

82-403

A

L

inguisticA

nalysis

ofAccounti

ng, by G

ail E. Farrelly

82-600 The

Relatio

nship B etw een Co

mputerizatio

n and Performan

ce: A

Strategy

for

Ma

ximizing the Econom

ic Ben

efits of

Co

mputerizatio

n,

by William

L . Cron and

Marion

G. Sobol

82-601 Optimal L

and Use Planni

ng, y Richar

d

B.

Peiser

8

2-602 Variances

an d

Ind

ices,

y Michael

F. va

n Breda

82-60

3 T he Pricing

of Small B

usiness Loans,

y Jonath

an A

.

Scott

82-

604 Collateral

Requirement

s and S

mall

Business

Loans, b

y

Jo

nathan A. Sco

tt

82-605 Va

lidationStrate

gies fo

r

Hultiple

Regressio

nAna

lysis: A Tutorial ,

by

Marion

G. Sobol


22/28

82-700

Credit Rationing

and

the Small

Business Counnunity,

by

Jonathan

A.

Scott

82-701

Bank

Structure

and

Small

Business Loan

Markets, by William C.

Dunkelberg

and

Jonathan

A.

Scott

82-800 Transportation

Evaluation in

Counnunity

Design: An Extension with

Equilibrium Route Assignment, by Richard B. Peiser

82-801

An Expanded Counnercial Paper Rating Scale: Classification of

Industr ia l Issuers ,

by

John

W.

Peavy,

I I I

and

S.

Michael

Edgar

82-802

Inflation, Risk,

and

Corporate

Profi tabi l i ty:

Effects

on Counnon

Stock

Returns, by

David

A. Goodman

and

John W. Peavy, I I I

82-803 Turnover

and

Job Performance: An Integrated Process Model, by

Ellen F.

Jackofsky

82-804

An Empirical Evaluation of Stat is t ical Matching

Methodologies, by

Richard

S. Barr,

William

H. Stewart,

and

John Scott

Turner

82-805

Residual

Income

Analysis:

A Method

of

Inventory

Investment

Alloca

t ion

and

Evaluation,

by Michael

Levy and

Charles A. Ingene

82-806

Analytical

Review Developments in Practice:

Misconceptions, Poten

t i a l

Applications, and

Field

Experience, by

Wanda Wallace

82-807

Using Financial Planning

Languages

for

Simulation,

by

Paul

Gray

82-808 A

Look

at How

Managers'

Minds Work, by John

W.

Slocum,

Jr.

and

Don

Hellriegel

82-900

The

Impact

of

Price

Earnings Ratios

on

Portfolio Returns,

by John

w

Peavy, I I I

and David A.

Goodman

82-901 Replicating

Electric

Util i ty Short-Term Credit Ratings,

by John

W.

Peavy, I I I

and

S.

Michael

Edgar

82-902

Job

Turnover Versus Company Turnover: Reassessment of the

March

and

Simon Participation

Model,

by Ellen F. Jackofsky and Lawrence

H. Peters

82-903 Investment

Management by

Multiple

Managers: An

Agency-Theoretic

Explanation, by Christopher

B.

Barry

and

Laura

T.

Starks

82-904

The

Senior Marketing Off icer

An Academic

Perspective, by

James

T. Rothe

82-905 The Impact

of Cable Television

on

Subscriber

and

Nonsubscriber

Be

havior,

by James T.

Rothe, Michael

G.

Harvey,

and George c.

Michael

82-110 Reasons

for Quitting:

A Comparison

of

Part-Time and Full-Time

Employees,

by James

R. Salter,

Lawrence

H. Peters,

and

Ellen

F.

Jackofsky

82-111 Integrating

Financial Portfolio

Analysis

with

Product Portfolio

Models,

by

Vijay

Mahajan

and

Jerry Wind


23/28

82

-112 A Non-Un

ifo rm

Influence Inno

vationDi

ffusion Model

of New Product

Acceptan

ce, by C

hristopher

J . E as in g w o

od , Vij

ay

M

aha jan , and

Eitan

Muller

82-113

T h e

Accept

ability of

Re

gression

Analysi

s as E

vidence in a Court room

-

I

mplications

for the Aud

itor, by Wa

nda A.

Wallace

82-114

A

Further Inquiry

Into

the

Market Value

and

Earnings' Yield

Anomalies,

by

John

W

Peavy, I I I an

d David A. Goodman

82-

120

Co

mpensating Balances,

De

ficiency

Fees an d Lines of

C

redit: An

Opera

t

ional

Model, by Chun

H. L

am

and Ke

nneth J.

Bou

dreaux

82-121 T

ow ard a Formal

Model

of O

ptimal

Seller

Beh

avior

in

the

Real Estate

Transactions

Process,

by

Kerry

V

andell

82-122

Estimates

of the

Effect

of

School

Dese

gregation

Plans on

Housing

Values O ver

Time, by

Kerry D. Vandell

and Robert

H. Zerbst

8

2-123 Comp

ensating Balances,

Defic

iency

Fees

an d

L

ines of

Credit, by

Ch

un

H.

Lam

and

Kenneth

J .

Boudreaux

83-100 Te

achingSoftwar

e S y s tem

Design:

An Experie

ntial Appro

ach, by

T

homas E. Perk

ins

83-101

RiskPer

ceptions

of

In

sti tutional Inve

stors, by

Gail

E. Farr

elly

and

William

R. Rei

chenstein

83

-102 An Int

eractive ppro

ach

to

Pensi

onFund Asset

Man ag eme

nt, by D av i

d A.

Goodman an d

Jo

hn W. Peav

y,

I I I

83-103

Tech

nology, Structure,

and Workgroup

Effectivene

ss: A Te

st

of

a

Contingency

Model, by Louis

W

Fry an d J

ohn W Slocum

, J r

83-104

Environmen

t,

S

trategy an d

Performa

nce: An

Em

pirical Anal

ysis

in Two

Se

rvice I

ndustr ies, b

y William R.

Bigler, J

r an d B an w ar i

L . Kedia

83-105

Robu

st

Regress

ion: M

eth od and

App

lications, by Vi

jay

M

ahajan ,

Subha

sh S h arma ,

and Jerry

W

ind

83-10

6

An App

ro ach

to

Repe

at-Purchase

Diffus

ion Analysis,

by Vijay M a

haja n ,

S u b h ash S h

arm a, and Jerr

yWind

83-200

AL

ife

Sta

geAnalys

is of

Small

Bus

iness Strate

gies

and

Pe

rformance,

by Raje

swararao Chagant

i, Radhara

o Chaganti,

an d Vij

ay M ahajan

83-20

1 Reality S hock : W

hen A Ne

w Emplo

yee's

Ex

pectations Don't

Match

Real

ity,

by

R

oger A. Dea

n and John

P. Wanous

83

-202 T h e

Effectsof Rea

listic Job

Preview

s

on Hir

ing Bank

Tellers, b

y

R

o g er A. Dea

n an d

John P. Wanous

83-203

Systemic

Properties

of

Strategy:

Evi

dence

and a

Caveat From

an

Example

Using a

Modified M iles-Snow

Typ

ology, Wi

lliam R. Bi

gler, Jr .

83 204 Diffe

rentialInform

ationan d

the Sm

all

Firm

Effec

t, by

Christo

pher

B. B

arryan d

StephenJ.

Brown


24/28

83-300

Constrained Classification:

The Use

of

a

Prior i Information in

Cluster Analysis, by Wayne S. DeSarbo and Vijay Mahajan

83-301 Substi tutes for Leadership:

A Modest

Proposal for Future

Investi

gations of

Their

Neutralizing Effects, by S. H.

Clayton

and D. L.

Ford, Jr

.

83-302

Company Homicides and

Corporate

Muggings:

Prevention

Through

Stress

Buffer ing-

Toward

an

Integrated

Model,

by

D.

L.

Ford,

Jr.

and

S.

H. Clayton

83-303

A Comment

on the

Measurement of Firm Performance

in Strategy

Re

search, by Kenneth R. Ferris and Richard A. Bettis

83-400 Small

Businesses,

the

Economy, and High

Interest Rates: Impacts

and

Actions

Taken

in Response, by Neil

C.

Churchill

and

Virginia

L.

Lewis

83-401 Bonds

Issued

Between

Interest Dates:

What Your Textbook Didn't

Tell You,

by

Elbert

B.

Greynolds,

Jr. and

Arthur

L. Thomas

83-402 An

Empirical

Comparison of Awareness Forecasting Models of

New

Product

Introduction, by Vijay Mahajan, Eitan

Muller,

and Subhash

Sharma

83-500 A Closer Loot:. at Stock-For-Debt Swaps, by

John

W.

Peavy

I I I

and

Jonathan

A.

Scott

83-501

Small

Business

Evaluates i t s Relationship with

Commercial

Banks,

by

William

C. Dunkelberg and

Jonathan A. Scott

83-502 Small

Business

and the Value of Bank-Customer Relationships, by

William

C. Dunkelberg and

Jonathan A. Scott

83-503 Differential

Infortllation

and

the Small Firm Effect, by Christopher

B.

Barry

and Stephen J . Brown

83-504

Accounting Paradigms and Short-Term

Decisions:

A

Preliminary

Study, by Michael

van

Breda

83-505 Introduction Strategy for New Products

with

Positive

and

Negative

Word-Of-Mouth, by

Vijay

Mahajan,

Eitan Muller

and Roger

A.

Kerin

83-506 Ini t ia l Observations

from

the Decision

Room

Project, by

Paul

Gray

83-600 A Goal Focusing Approach to Analysis of Integenerational Transfers

of

Income:

Theoretical

Development and

Preliminary

Results,

by

A.

Charnes, W. W. Cooper,

J . J. Rousseau, A.

Schinnar,

and

N.

E.

Terleckyj

83-601 Reoptimization

Procedures

for Bounded Variable

Primal

Simplex

Net

work

Algorithms,

by

A. Iqbal Ali, Ellen P. Allen, Richard S. Barr,

and Jeff L.

Kennington

83-602

The

Effect

of

the

Bankruptcy Reform Act of 1978 on

Small Business

Loan

Pricing,

by

Jonathan A.

Scott


25/28

83-80

0 Multiple K

ey Infor

mants' Perceptio

ns

of

Busin

ess

Env

ironments,

by

Wil

liam L

. C ron and

John W. Sloc

um , Jr

8

3-801

Pr

edicting

Sales

force

R

eactions

to New

T

erritory

Desig

n According

to Equity

The

ory

Pro

positions,

by William

L. Cron

83-802 Bank P

er formance in

the E merg

ingRecove

ry: A

Changing Risk-Retur

n

Environm

ent,

by Jonathan

A. Scot

t and G eorge

H. Hempel

83-803 Busine

ss

Synergy an d Prof

itabi l i ty ,

by Vijay M ah

ajan and Yor

am

W

ind

83-804

Adver

tising,

Pric

ing and Sta

bil i ty

in

Oligo

polistic

Markets

for

New Pr

oducts, b

y

Cha

im Fershtman,

Vija

y Mahajan, an d

EitanMuller

83-805 Ho

w

H

ave The Prof

essional Stand

ards In

fluenced Pra

ctice?, by

Wanda -

A. Wallace

83-806 What

Attribute

s of

an

Intern

alAuditing

Depar

tment

Signifi

cantly

Increa

se

t

he

Probab

ility

ofExternal Audi

tors Relying

on

the Internal

Au

dit D

epartment?, b

y Wand

a

A.

Wallace

83-807 Building B

ridges in

Rotary, by M

ichael F.

van Br

eda

83-808 A New A p

proach

to Variance A

nalysis,

by

Mic

hael F.

van Breda

83-809 R

esidual Income

Analysis:

A M ethod of

In vento

ry

Investmen

t All

oca

t ion

and

Evaluation, by M

ichael Levy

and Charles

A. Ingene

83-810 Taxes,

Insurance

, an d Corpor

at e Pens

ion

Policy

, by

Andrew

H. Chen

83-811 An Analy

sis

of

th

e

Impact of Regulato

ry C hange:

The C ase

of

Natural Gas

Dere

gulation, by Andre

w H.

Chen a

nd Gary

C. Sanger

83-900 Networks

with

Side

Constraints: An

LU

Factorizat ion

Update,

by

Rich

ard S

.

Barr

, Keyv

an Farhangian

, an d

Jeff L . Ken

nington

83-

901 Diver

sification St

rategies

and

Manager

ial R

ew ards:

An

E

mpirical

Study, by Jeff

rey L Kerr

83-902 A

Decis

ion Support

S y s tem f

or Developing

Retail P

romotional Strategy

,

by Paul E.

Green,

Vijay Mahajan

,

Stephe

n M. Go

ldberg,

and

P

radeep

K.

Kedia

33-903

Network

Genera

ting Mo d el

s for Equipm

ent

Re

placement,

by J

ay E.

Aro

nson

an

d Julius S.

Aronof

sky

83-9

04 Differenti

al Information

an d

Security

Market Equilibriu

m, by

Chris

topher B. Barry

and Steph

enJ . Brown

83

-905 Optim

izationMethods in

Oil and G

as Develo

pment, b

y

Juliu

sS.

Aronofsky

83-906

Benefit

s

and Costs

of Disclo

sing C

apital

Inv

estment P

lans in

Corp

ora te A n n u a l R

eports,

by

G

ail E. Farrelly

and

arion

G.

Sobo

l.


26/28

83-907

Security

Price Reactions Around

Corporate

Spin-Off Announcements,

by

Gailen

L.

Rite

and James E. Owers

83-908 Costs

and

their

Assessment

to Users of

a

Medical Library: Recovering

Costs from

Service

Usage, by E. Bres, A. Charnes, D. Cole Eckels,

S.

Hitt , R. Lyders,

J . Rousseau,

K. Russell and M. Schoeman

83-110 ''Microcomputers

in

the

Banking Industry, by Chun

H.

Lam and George

H. Hempel

83-111 Current

and

Potential Application of

Microcomputers

in Banking

-

Survey Results, by Chun H. Lam and George H. Hempel

83-112 Rural Versus

Urban Bank

Performance: An Analysis of

Market

Competition

for

Small

Business Loans, by Jonathan

A.

Scott

and

William

C.

Dunkelberg

83-113 An

Approach

to

Positivity

and

Stabili ty Analysis in DEA,

by A.

Charnes,

W. W Cooper, A.

Y. Lewin, R.

C.

Morey, and

J. J .

Rousseau

83-114 The

Effect

of Stock-for-Debt on

Security Prices,

by John

W

Peavy, I I I

and

Jonathan A. Scott

83-115

Risk/Return Performance of Diversified Firms,

by

Richard

A.

Bettis

and

Vijay

Mahajan

83-116 Strategy

as

Goals-Means

Structure

and

Performance: An

Empirical

Examination, by William R. Bigler,

Jr .

and Banwari L. Kedia

83-117 Collective Climate:

Agreement

as

a

Basis for Defining Aggregate

Climates in

Organizations,

by William F. Joyce and

John W.

Slocum,

Jr .

83-118 Diversity

and

Performance:

The

Elusive Linkage,

by C. K.

Prahalad

and Richard A. Bettis

83-119

Analyzing Dividend

Policy:

A

Questionnaire Survey,

by

H.

Kent

Baker, Richard

B. Edelman, and

Gail

E. Farrelly

83-120

Conglomerate Merger, Wealth Redistribution

and Debt,

by Chun

H.

Lam

and Kenneth

J .

Boudreaux

83-121 Differences

Between

Futures

and Forward Prices:

An Empirical

Investi

gation of the Marking-To-Market Effects, by Hun

Y.

Park

and Andrew H.

Chen

83-122

The

Effect

of Stock-for-Debt

Swaps on Bank

Holding Companies,

by

Jonathan

A. Scott , George H. Hempel, and

John W

Peavy, I I I

84-100

The

Low Price Effect:

Relationship with

Other Stock

Market

Anomalies,

by David A.

Goodman

and

John

W

Peavy,

III

84-101 The Risk

Universal

Nature

of the Price-Earnings

Anomaly, by David A.

Goodman

and

John W. Peavy, III

84-102

Business

Strategy

and

the

Management

of the

Plateaued Performer, by

John W.

Slocum,

Jr . William

L.

Cron,

Richard W.

Hansen, and

Sallie

Rawlings

84-103 Financial Planning for Savings

and Loan

Institutions - -A New Challenge,

by Chun

H. Lam

and

Kirk

R. Karwan


27/28

84-104

B ank

Performan

ce as the Economy

Reb

ounds,

y

Jonath

an A.

Sc

ott and

George

H. Hempel

84

-105 The Optim

ality

of Multipl

e

Inv

estment Manag

ers: Num

erical Examp

les,

b

y

Chr

istopher

B. Barry

an

d Laura T.

Starks

84-200 Mi

crocomputers

in Loan M

an ag emen t ,

y Chun H.

Lam an d G eo r

g e

H.

Hempe

l

84-201

U se

of

Financial

Planning

Languages

for

the

Optimization of

Generated

N

etworks

for E q u ip men

t Replacem

ent, by Jay E

. A ro n so n an

d Julius S.

Ar

onofsky

84-30

0

R

eal

Estate Investme

nt F

unds: Perfo

rmance and

Po

rtfolio

Consid

erations,

y

W.

B

. B rueggema

n, A.

H.

C he

n, and T . G

.

Thibodeau

84-301

A

New Wrink

le

in Corpora t

e Finance:

Levera

ged Preferre

d Financing

,

y Andrew

H. Chen and

John

W K

ensinger

84-400 Reach

ing the

C

hanging

Woman Consumer

:

An Experim

ent

in A

dvertising,

by Th

omas E.

Barry, Mary

C. Gil

ly

and Lindley

E. Do

ran

84-

401 Foreca

sting, Repo

rting, an d C o

p in g with

Systemati

c Risk, y Mar i

on G.

Sobol and

Gail E. Farrelly

84-402 Man

agerial Inc

entives in Port

folio M an

agement: A

New

Motive for the Use

of

Multiple M

anagers, by Chr

is topher

B. Barry an d

Laura T .

Starks

84-600 Under

standing S

ynergy: A

Con ceptu

al

a

n d Empir

ical Researc

h Propos

al,

y W

illiamR.

Bigler, Jr

84-60

1 Managing

fo

r

U

niqueness: Some

Distinction

s for Strat

egy, by

William

R. Big

ler,

Jr

84-602

Firm Performance

M easurement

Using

Trend,

Cyclical,

an d

Stochastic

Compo

nents, by Richard

A. Betti

s

an

d Vijay M ah

ajan

84-603

Sma

ll

Busines

s Bank

Len

ding:

Both

Sides are W

inners,

by

Neil

C.

Ch

urchill and Vir

ginia L . L

ew is

84-700

As

sessing

the Impa

ct of

Market Inte

rventions on Firm

's P

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