Digitized Theses and Dissertations (1940 - 2009)
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Browsing Digitized Theses and Dissertations (1940 - 2009) by Department "Business, C. T. Bauer College of"
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Item A case study to develop accounting procedures for financial reporting of investments in fixed assets and for centralized budgetary control of capital expenditures(1953) Reedstrom, Charles D.; James. Virgil A.; Owen, John P.; Crouch, Rolland G.It is the purpose of this study to provide operating management, namely the division superintendent, with comparisons of capital expenditures and budget estimates for each operating division. In order to provide such comparisons, the accounting system and procedures for recording changes in fixed asset and relative reserve accounts must be revised in order to identify the capital expenditures applicable to each operating division. The resulting procedures must also provide the necessary accounting information required to prepare financial statements for reporting changes in investments in fixed assets and relative reserve accounts. In this study the accounting system and accounting procedures used for recording changes in fixed asset and relative reserve accounts were analyzed and studied to determine what information is available in the accounting records, how it is obtained, and whether or not it could supply information required to make comparisons of capital expenditures and budget estimates for each operating division. The accounting system for fixed assets was designed to supply information on an over-all and Company-wide basis and was not designed to supply the information required for each operating division; therefore, it was necessary to propose several revisions. The chart of accounts and budget categories were not constructed in a parallel manner. Comparable classifications in the chart of accounts and budget categories have been suggested. The accounting system did not provide a means of controlling the accounting applicable to each department or to the operating divisions within the departments. One accounting office handled all accounting for fixed assets and relative reserve accounts for two operating departments. A system of departmental and operating division codes was suggested to provide accounting controls for each department and operating division. Capital additions and all other types of transactions which apply to fixed asset and relative reserve accounts were determined by an analysis procedure subsequent to vouchering into the accounting records. After a thorough study to determine the types of transactions which were required for financial statement and budget comparison purposes, a series of type of transaction codes was developed. It was suggested that the type of transaction codes be made a component part of regular accounting distribution procedures. The type of transaction codes will provide a means of identifying and controlling capital expenditures and all other types of transactions which are required for financial statement purposes. The Company uses electric tabulating equipment in recording and accumulating accounting records for fixed asset and relative reserve accounts. Consideration was given in the proposed revisions to adapt the procedures for electric tabulating equipment in order that the revised system could utilize this equipment.Item A comparative examination of the moderating effect of individual differences versus group focused factors on job design relationships(1979) Johnson, Bruce Herbert; Szilagyi, Andrew D., Jr.; Ivancevich, John M.; Montanari, John R.; Enis, Ben M.This dissertation compared the relative importance of two categories of variables as moderators of the relationship between job design and performance, job satisfaction, absenteeism, and propensity to leave. The two moderator categories - individual difference factors and group focused variables - represent a replication and an extension, respectively, of current research in the area of job design. For several years empirical investigations have been conducted which examined individual differences that potentially moderate the relationship between job characteristics and worker responses to the job. However, a review of the literature indicates a failure of any individual difference variable to consistently moderate job design relationships across different settings. Furthermore, some researchers are now suggesting that a more productive avenue of research into moderator effects may be an examination of situational contingencies. If situational contingencies moderate job design relationships, then the degree to which an employee focuses on and is perhaps motivated by the job would be a function of situational, non-task elements of the work environment. A primary non-task element of this environment is the individual's work group. The purpose of this research was to examine the role that certain group factors may play in influencing the manner in which a person responds to his or her task. The three group factors which were examined in this research were the level of group cohesion, the performance norms the individual felt the work group enforced, and the interaction of group cohesion and performance norms. The moderating effect of these three variables was contrasted with the moderating effect of two individual difference factors - growth need strength and relatedness need strength. [...]Item A comparison of trading rules to test the efficient market hypothesis(1978) Muthukrishnan, Sankar; Otto, Gordon H.; Paine, Neil R.; Mitchell, A. Cameron; Stansell, Stanley R.The efficient market hypothesis is one of the widely accepted models for the behavior of stock prices. This hypothesis of stock price, behavior implies that any mechanical trading rule based on a series of past security prices will not perform better than a buy and hold investment strategy. This research tests the efficient market hypothesis by comparing the returns obtained using various trading rules with the results of the buy and hold investment strategy. The trading rules used in this study for comparison with the buy and hold investment strategy are (i) the five percent filter rule, (ii) the ten percent filter rule, and (iii) Zahorchak's trading rules. Filter rule trading decisions are based on changes of at least x percent (x = filter size) in a stock's price. A buy decision is triggered when a stock's price increases by at least x percent from its previous bottom. Conversely, a sell decision is triggered when the price of a stock declines by at least x percent from its previous top. Zahorchak's trading rules are based on the movement of market indices and individual stock prices. Here, five, fifteen and forty week moving averages of the Dow Jones Industrial Average and the fifteen week moving averages of the cumulative advance-decline line are used to time the primary trend of the market. The moving averages (five, fifteen and forty week) of the prices of individual stocks are then used to time, buy and sell decisions. For purposes of the present study, data were collected for weekly closings of market indices, the Federal Reserve Discount Rate, weekly closing prices and the volume of stock traded for twenty-two firms in five industries. The data span a four year period: January, 1973 to December, 1976. This period was selected because it covered periods of bull, bear and uncertain markets. Initially these data were used to compute the returns that would have been realized using the above described trading rules. In simulating the trading: (1) the investor's return was deemed to include both trading gains and dividends, (2) no short sales were allowed, and (3) idle funds were assumed to be placed in a savings account earning interest at five percent per annum, compounded daily. The representative transaction costs were obtained from a brokerage firm for the period studied and adjusted for odd-lot transactions. The results of the study indicate that, when transaction costs were excluded, both the filter rules and Zahorchak's trading rules realized higher returns than a buy and hold strategy. When the transaction costs were introduced, the buy and hold strategy performed significantly better than the filter rules. Zahorchak's trading rules, however, still resulted in somewhat higher returns than the buy and hold strategy, but the differences were not statistically significant at the ten percent level. To analyze further the differences between Zahorchak's trading rules and the buy and hold strategy, the stocks in the sample were divided into two groups: one group of stocks with Beta greater than one and the other with Beta less than or equal to one. The differences between the returns realized using Zahorchak's trading rules and the buy and hold strategy were compared in each of these groups. They were not found to be statistically significant. In the second stage of study, regression models were constructed to predict the stock prices one or more periods hence. The independent variables were lagged prices, moving averages of prices and various dummy variables reflecting Zahorchak's rules. Price changes and the level of market indices were also used as independent variables. The models were constructed for each of the twenty-two stocks. In each case, the previous price was a highly significant variable with the coefficient close to one, as predicted by the random walk model. However, in fourteen of the twenty-two stocks, one or more of the factors in Zahorchak's trading rules appeared as a significant variable. None of the variables consistently appeared in all of these fourteen stocks. In addition, the signs of the coefficients showed no consistent pattern when they did appear. The best performance was by the dummy variable signalling the movement of long term trend of the stock prices. This variable appeared in five of the twenty-two stocks with no sign reversals. Based on these results, the general relevancy of the factors in Zahorchak's trading rules for any randomly chosen stock cannot be substantiated.Item A critical evaluation and extension of the application of quantitative techniques to the field of auditing(1974) Barkman, Arnold Ira; Paine, Neil R.; Mitchell, A. CameronThis dissertation constitutes, among other things, an inquiry into how various quantitative techniques are being used by members of the auditing profession. An extensive review of the literature is made to ascertain what quantitative techniques have been suggested for use by auditors. Such techniques include Markov chains, regression analysis, Bayesian statistics, simulation, and nonparametric statistics. An analysis is made of in-depth interviews conducted with personnel from the largest accounting firms. The results of the interviews indicate that in current practice very little use is made of quantitative techniques other than those associated with classical survey sampling and classical parametric univariate hypothesis testing. The reasons for this lack of use are reported and discussed. An investigation of how auditors, businessmen, and investors act in various uncertainty situations is discussed. Experimental results show that auditors tend to use weighted averages in preference to modes and medians. A quantitative approach to audit uncertainty is presented. This approach allows for formal recognition of the stochastic nature of many account items. Examples are provided which demonstrate how the approach might be used in practice.Item A field investigation of some individual differences in the performance and use of an expert system(1988) Will, Richard Paul; Parks, Michael S.; Alavi, Maryam; LaMotte, Lynn R.; Ivancevich, John M.Elements of the human-computer interface involve the interaction of a human user with an information system in the context of a task to be accomplished within an organizational environment. This research is concerned with the use of expert system technology and human factors regarding implications for information system designers. Twenty-eight engineers in an oil and gas exploration and production company participated in this study by solving a well pressure buildup analysis problem. Half of the subjects utilized a well test interpretation expert system to assist them while the other subjects solved the problem manually. The groups were balanced across age, cognitive style, and trait anxiety. Independent variables consisted of the expert system treatment, dogmatism, and experience with performing the task. Impact measures consisted of decision confidence, decision quality, decision time, state anxiety, and a system success indicator for those subjects utilizing the expert system. Without a significant increase in decision quality, subjects utilizing the expert system had (1) higher decision confidence and (2) took longer to make their decisions than did the subjects performing the task without the expert system. Of the expert system users, novices evaluated the system with significantly greater success than did the experts. Experts utilizing the expert system experienced higher state anxiety than those experts unaided by the system. Low dogmatic (open-minded) subjects utilizing the expert system noted a significant increase in state anxiety over low dogmatics without the system. The results of this investigation indicate differences in the way individuals with varying experience and dogmatism relate to the expert system in guestion. The findings also point to dysfunctional relationships between the users perception of the expert system and the results obtained. Specifically, although decision confidence was higher in the group utilizing the expert system, there was no corresponding increase in decision quality. Also, experts utilizing the expert system experienced an increase in state anxiety, and rated the expert system significantly worse than the novices.Item A matrix-geometric solution of a queueing problem in which customers require a random number of servers(1988) Ittimakin, Prawit; Kao, Edward P.; LaMotte, Lynn R.; Peixoto, Julio L.; Pyle, Leonard DuaneIn this research, multi-server queueing systems in which customers request service from a random number of identical servers are examined. Queueing systems of this type are found in many applications: a loss system situation in computer systems where buffers and other temporary storage devices are used for programs and data of varying dimension, communications systems in which a single wide-band facility is used to carry traffic of different bandwidths, and a communication problem in which data are directed to two or more destinations (and cannot be transmitted until the required receivers are free). Other applications include loading docks, fire fighting, jury selection and emergency surgery. In comparison to batch arrival queues, customers cannot begin service until all requested servers are available. Servers assigned to the same customer may free separately. Customers receive services on the FIFO basis. This class of model was studied by Green [1978] in the past few years. Green has obtained solutions to some of the operating characteristics of interest, but these solutions are only for the case in which the arrival process is a Poisson process and the service times follow exponential distribution. Some of her solutions are presented in Laplace-Stieltjes transforms. This research presents a matrix-geometric approach to this class of problems. The matrix geometric approach to the solutions of a wide variety of queueing problems was proposed by Neuts*. Using the approach, we model our system as a Continuous Time Markov Chain (CTMC). There are many advantages in using this approach to the problem. First, the CTMC has the structure of the quasi-birth-and-death process, therefore many of the available results can be applied. The computational effort in finding the solutions depends more on the parameters of the problem than on the size of the problem. Secondly, because of the approach used, it is possible that we do not have to restrict ourselves to the Poisson arrival assumption. The generalization is through the use of phase type of distributions. The approach used in this research to this class of queueing systems is believed to yield numerical solutions in most situations. Also, the generalization of the arrival process makes this approach more practical in applications. *Neuts, M.F. Matrix-Geometric Solutions in Stochastic Models, The John Hopkins University Press, Baltimore, Maryland, USA, 1981.Item A multi-dimensional study of differences in perceptions and preferences of social responsibilities of marketers(1973) Homans, Richard Edward; Enis, Ben; Hocking, Ronald R.; Kangun, NormanThis study was undertaken in an effort to illustrate a potential method for examining the attitudes of different groups of people with respect to selected social and consumer issues facing marketers. Such a technique, if successful and communicable, could aid the understanding of differences in attitudes of marketers, critics, customers, and other members of society. Marketers would then be better able to respond to the demands of vocal critics and to the needs and desires of customers and other members of society. Fifteen issues were studied. In general, they were selected to represent the criticisms discussed in current literature. The subjects represented three groups: 19 housewives, 28 business (25 industrial and 3 retail), and 23 students. No group was selected to be representative of a larger population. Attitudes were studied with respect to perception and with respect to preferences. Techniques of multidimensional scaling were used for this examination. To provide the necessary data for the multidimensional scaling programs, the subjects were asked to complete two questionnaires. The first questionnaire contained ten pairs of semantic differentials. Subjects rated each of the fifteen issues on each pair of semantic differentials. Euclidean distances were calculated between each pair of issues for each individual and used as input for the perceptual scaling program. The second questionnaire asked the subjects to rank the fifteen issues in order of preference. This data was used as input to the preference scaling program. The perceptual scaling algorithm that was used was designed by J. D. Carroll and J. J. Chang of Bell Laboratories. This program, INDSCAL, developed an overall perceptual scaling (called a group stimulus space) for all subjects. Each subject, however, was assigned idosyncratic weights for each dimension. These weights, or saliences, indicate the degree that the dimension was used by the individual in developing his perceptual differences between the issues. The best scaling of the fifteen issues appeared to be in four dimensions. These were interpreted as follows: Dimension 1. This dimension is dominated by one issue, layoffs of workers in times of sales decline. Dimension 2, The second dimension ranges from product oriented issues to price and promotionally oriented issues. Dimension 3. This dimension ranges from promotionally oriented issues to product and price oriented issues. Dimension 4. The fourth dimension includes societal oriented issues on the negative side and consumer oriented issues on the positive side. When the scalings were recomputed in three dimensions for fourteen issues (without the layoff issue), the dimensions matched dimensions 2, 3, and 4 of the four dimensional scaling of fifteen issues. When the perceptual saliences were tested for overall differences between the groups (using multivariate methods) the hypothesis of significant differences between the groups was rejected at the .05 level. In other words, no overall significant difference between the groups was proved with respect to perception. However, analysis of the individual dimensions showed some apparent differences. In these "univariate" analyses, the following interpretations were made: รขโฌโHousewives tend to lump product and price oriented issues together and compare these with promotional issues. รขโฌโStudents tend to perceive layoffs more closely to the other issues than do the other groups. รขโฌโStudents tend to attach more salience to the difference between promotionally oriented issues and the issues of price and product than do the others. Further, students tend to perceive the issues as price, product, and promotion issues more distinctly than the other groups. รขโฌโStudents tend to see less difference between issues on the basis of being societal or consumer issues than do the other groups. The first of these is significant at the .05 level using univariate t-tests (i.e., housewives do not perceive a difference between product and price oriented issues which is significantly different from other groups). Preferences were analyzed using Carroll and Chang's PREFMAP algorithm. This program allows four models of analysis. The simplest model, a vector representation of preferences, provided adequate representations. Using this model, a preference vector was fitted for each individual on the group stimulus space provided by the INSCAL model. The relative preferences for the dimensions can be interpreted by analyzing the projections of the vectors on the dimensional axes. The following interpretations were made from the preference vectors: รขโฌโHousewives have less preference for action on product oriented issues than the other groups. รขโฌโBusinessmen have less preference for action on price oriented issues than the other subjects. รขโฌโStudents prefer actions on societal oriented issues while businessmen and housewives prefer action on consumer oriented issues. The last of these observations is significant at the .05 level using univariate t-tests (i. e., students prefer societal oriented issues significantly more than housewives and businessmen). When tested for overall differences in preference between the three groups (using multivariate methods) the hypothesis of overall significant differences between the groups was accepted at the .05 level. In other words, there were overall significant differences between the groups on the basis of preference. While the findings listed above are interesting and may point to true differences between the populations of students, housewives, and businessmen, the true value of this study is in the method which it presents. If some improvements are made in data collection procedures and in the computer programs, the method shown here can be used by marketers to evaluate the opinions of the various populations regarding issues relevant to their business. These evaluations should aid the marketers in formulating policy regarding social and consumer issues.Item A process analysis study of the deployment of electronic funds transfer peripherals(1985) Smith, Samuel Don; Horvitz, Paul M.; McFarland, James W.; Crockett, John H.; Lee, Kwang Y.This dissertation examines questions about the evolution of the United States payments system that are important for public policy and for individual firm decisions. Technological and regulatory changes are making such significant inroads into the payments system that the very survival of small financial institutions is in question. The existence of decreasing costs to scale which may be enjoyed by large financial institutions is examined. A process analysis model is used, so as to avoid the shortcomings of statistical extrapolation techniques. This is especially important since electronic funds transfer in general and automatic teller machines in particular are being implemented at geometrically increasing rates. This model is created using current cost data from Automatic Teller Machine (ATM) network suppliers including, but not limited to hardware and software manufacturers, servicing agencies, builders, communication companies, and real estate brokers. Simulation studies are carried out on the model which reveal trends in costs which may be useful in planning ATM networks. Decreasing costs to scale exist, but they are small. A decrease in future hardware or software costs in ATM networks will render these decreasing costs to scale smaller yet. This suggests that small financial institutions will not be disadvantaged with respect to decreasing costs to scale. Also the electronic funds transfer configuration which a small financial institution implements should come from a relatively small range of choices. This configuration is well defined by the expected size of the proposed network. [...]Item A proposed course of study for legal stenographers(1948) Overholt, OliveThe purpose of this study was: to prepare a one- semester course of study on the college level, which could be used In the training of students for employment as legal secretaries. The Investigation was made (1) by mailing questionnaires to attorneys and their secretaries In Houston, Texas, and (2) by means of library research. It was the purpose of the questionnaires to determine (1) whether or not a course for legal stenographers was considered desirable by attorneys, (2) what qualifications and work accomplishments attorneys considered desirable In legal secretaries, and (3) what duties were actually performed by legal stenographers. It was the purpose of the library research to determine what material Is available for the training of legal secretaries. It was found that 71.43 per cent of the attorneys were In favor of a course for legal stenographers. The following qualifications and work accomplishments were considered desirable by a majority of the attorneys: a familiarity with words common to the legal profession; absolute accuracy In the transcription of legal Instruments; a familiarity with legal forms, such as deeds, wills, briefs, etc.; the ability to take office dictation at approximately 120 words a minute or higher; a high typing speed; the ability to use Dictaphone or Ediphone equipment efficiently. The following duties and work requirements of legal secretaries were reported by a majority of the legal stenographers: filling out legal forms where Information Is typed in the blanks; transcribing legal Instruments with absolute accuracy; meeting clients who call at the office for appointments; taking complete legal Instruments from dictation; composing correspondence for employers; typing some legal Instruments on which no erasures are permitted; taking dictation for long periods of time. Additional qualifications and work requirements were voluntarily mentioned by both attorneys and legal secretaries. Library research revealed that there was a scarcity of published material for the training of legal secretaries. A study of the Cumulative Book Index revealed that three published texts are available for training legal secretaries. A limited number of secretarial science texts contain one chapter on the legal duties of a secretary. A list of legal words and phrases was Included with the study. It was complied from the legal words and phrases In the Index of a college commercial law text. All words in the index which were not found in the Horn 10,000-word list were retained. Shorthand outlines were Included with the list. A proposed one-semester course of study on the college level was prepared, based upon the findings of the study. Use was made of all available published materials In the course of study.Item A study of management consulting services and the decision factors used by financial executives in their retention(1981) Moore, John Oliver; Seiler, Robert E.; Francia, Arthur J.; Kretlow, William J.; Boockholdt, James L.The performance of management consulting services can be segregated into two groups: CPA (Certified Public Accountant) firms and non-CPA firms. Prior studies have dealt primarily with the nature of these services within CPA firms and its related effects on independence and the attest function. The primary purposes of this study are to determine: (1) the nature and differences between the management consulting services performed by CPA firms and non-CPA firms, and (2) the decision factors used by financial executives in retaining management consulting services. The information collected in this research was gathered using a mail questionnaire sent to selected samples of the groups of CPAs, non-CPAs, and financial executives. The data were analyzed using t-tests and factor analysis. The results clearly indicate a difference in the nature of management consulting services performed by CPA firms and non-CPA firms. Although some services performed were similar, the relative weighting scale indicated a difference in emphasis. [...]Item A study to determine the amount and kinds of non-dictated business writing done by high-level secretaries in the United States(1953) Lawrence, Nelda Reichert,1912-; Hughes, Eugene H.; Hayden, Carlos K.; Stovall, Franklin L.; Dorough, C. DwightThe problem investigated In this study involved these aspects; first, to determine the kinds of non-diotated business writing done by high-level secretaries? second, to determine the amount of each kind of such writing done by secretaries; third, to determine the opinions of secretaries as to the ease or difficulty of composing each kind of communication; and fourth, to relate the amounts, kinds, and difficulty of writing to the secretaries' various positions and educational backgrounds. Composing business communications is a primary secretarial duty, but, unlike duties Involving secretarial skills, no study had been recorded of the specific nature of this writing and of the factors which affected it. A check list of forty items (Including letters, reports, items for publication and miscellaneous writing) was sent to secretaries In sixty cities throughout the United States, with the request that they indicate those which they wrote frequently, seldom, and never. They were also asked to furnish information as to their educational background in English and business writing, the kind and size of company for which they worked, the official positions of their Immediate supervisors, and the length of their secretarial service. Those who returned the check lists were asked to send typical samples of the kinds of written communlcatlona which they were accustomed to composing in their offices. Two hundred twenty secretaries from fifty-two cities in thirty-seven states responded by returning the check lists, and eighty-four of these sent five hundred twenty samples of their non-dietated writing. Data were analyzed relative to the amount and kinds of the communications and of the opinions of the secretaries as to the ease or difficulty of each item. Also, the writing samples were read and appraised, with special attention given to spelling, punctuation, grammar, vocabulary, tone, and reader appeal. Secretaries wrote a greater variety of communications than had been realized by most writers of textbooks and reference books in collegiate secretarial training. The most frequently written letters were those of transmittal, Inquiry, instruction, reply, order, follow-up, and personnel. Letters for purely good will purposes were written by large numbers of high-level secretaries, especially in organizations which emphasize public service. The letters written least often were those serving as contracts, presenting bids for services or goods, and introducing new products or services to prospective customers. Reports were not so frequently written by secretaries as were letters. The type of report most frequently written was the periodic report; the type least often written was sections of the company's annual report to the stockholders. The geographic scope of a company's operations and. the number of persons it employed, were determining factors In the number and kinds of letters a secretary composed. Other influences upon the secretary's writing duties were the official position of her immediate superior and the type of business for which she worked. Secretaries considered letters expressing sympathy or condolence, presenting complaints, and giving Instructions about company procedures most difficult to write. Memoranda to company personnel, texts for public speeches, analyses of statistical reports, and articles and notices for company publications were also checked by most secretaries as being difficult to compose. The least difficult were letters of order and acknowledgment and bulletin board notices. Generally speaking, more secretaries with college training in English and business writing considered composing business communications difficult than those with high school or business school training. The reason for this difference of opinions was that most writers with only high school or business school training relied largely upon form letters and stereotyped messages. Although they discerned no difficulties with writing, they lacked, in most cases, the vocabulary and writing finesse Which was evident in the samples sent by most of the college trained secretaries. Length of employment had a favorable effect upon the secretary's opinion of writing difficulty, but the years did not necessarily Improve the secretary's ability with regard to grammar, vocabulary, or reader appeal. These qualities were more dependent upon her educational background. One area of information which this study helped to clarify was the large share of responsibility for written communications which modern business has placed upon the high-level secretary. Along with this, secretarial writers are subject to the same habits of good and poor writing which prevail in business communication generally. These two facts constitute a challenge to secretaries and educators who are interested in improving the performance standards in every phase of the secretary's work and enhancing the position of the secretary as a key professional person.Item A survey examination of the objective of accounts receivable confirmation and the behavior pattern of confirmation respondents(1985) Chou, Ling-Tai Lynette; Porter, Mattie C.; Grinaker, Robert L.; Finley, David R.; Szilagyi, Andrew D., Jr.According to the Statement on Auditing Procedure and subsequent AICPA pronouncements, the two types of confirmation requests are the positive confirmation and the negative confirmation. An auditor should investigate any exceptions reported by debtors regardless of the form of the confirmation. Some follow-up work must also be carried out by the auditor when any positive confirmation letters are not returned by customers. In order to evaluate the effectiveness of respective confirmation requests, specific audit objectives to be achieved by the auditor through this procedure need to be ascertained. The behavior of respondents has a moderating effect on the effectiveness of confirmations and is probed based on the response effect model. The theoretical framework for this study assumes that if the auditor's major objective for confirming with customers is to disclose irregularities in the accounting data, the effectiveness of various forms of confirmation requests should be a function of their ability to detect irregularities. In other words, audit objectives should be incorporated into the process to evaluate the effectiveness of confirmations. The response effect describes how the behavior of respondents may moderate the effectiveness of confirmation requests. Besides the task structure, two other sources of response effect are the saliency of the requested information perceived by the respondents and the memory problem. Two mail surveys were independently conducted on two entirely different groups of subjects. The first survey sampled auditors at public accounting firms in Houston and San Antonio, including four "Big Eight" accounting firms and one regional firm. The second survey was sent to a randomly selected group of controllers whose companies were listed on Dun & Bradstreet's "Million Dollar Directory". The statistical technique of factor analysis was chosen to form constructs for hypotheses testing so that (1) no excessive dependence was placed on particular questions, and (2) the principle of parsimony could be achieved. The findings support the hypothesis that the detection of irregularities is the objective of confirming accounts receivable with debtors. However, contradictory results are found regarding the importance of disclosing clerical improprieties by means of confirmations. The respondents, on the other hand, do not respond to positive requests more than other forms. When they do not respond, it is because that the information requested is not readily available to them. The optimal type of confirmation requests is the one that enables the greatest detection of irregularities by auditors when maximizing the level of information available for respondents to respond.Item Accounting for imputed interest on equity capital and its effect on predictive ability of annual income : an empirical investigation(1982) Yallapragada, RamMohan R.; Liao, Woody M.; Boockholdt, James L.; Gamble, George O.; Khumawala, Saleha B.; Scamell, Richard W.Accounting for the cost of capital is an old but unresolved conceptual problem in accounting. The accounting profession has not agreed on a consistent set of accounting principles for interest costs even though the topic has been under debate since the turn of the century. Under the present accounting framework, interest cost on borrowed funds is recognized and treated as an expense for the period; but, the cost on equity capital is not. Some companies, however, have been capitalizing interest on borrowed funds as part of the cost of certain fixed assets. Some others, such as utility companies, capitalize not only in terest on borrowed funds but also an imputed interest on equity capital as part of the cost of certain kinds of assets. Many critics claim that the current practice and the income presently reported in financial statements are not realistic because the cost of capital, a major cost of business, is not considered.The objective of this study is to examine the impact of recognizing an imputed equity interest cost on the information content of financial statements, specifically in the context of predicting annual income. The main research question in this study is: Does the annual income computed with an imputed interest cost on equity capital demonstrate superior predictive ability of annual income of business firms as compared to the income computed under the present accounting framework? In this study, the sample consists of 118 manufacturing firms and 111 nonmanufacturing firms. Data pertaining to the sample firms for a period of 14 years are gathered from Annual Industrial Compustat Data File [1980]. Reported (unadjusted) incomes of firms are adjusted for an imputed equity interest cost using three different interest rates (the prime interest rate, the Aaa corporate bond rate, and earnings/price ratio). Forecasts of unadjusted and adjusted incomes are developed using three forecasting models. Mean absolute percentage forecast errors of unadjusted income and adjusted income for sample firms are compared and tested for level of significance of difference using Wilcoxon matched pairs signed ranks test. A total of 243 different cases are examined using nine different groups of sample firms, three forecasting models, three interest rates, and three groups of debt/equity ratios. The results in the study show that, in general, recognition of an imputed equity interest cost does not enhance predictive ability of annual income. In the majority of the 243 cases tested, the differences in predictive ability are found to be significant and in favor of income reported under the present accounting framework. In addition, the differences in predictive ability are discovered to be significant in more cases for manufacturing firms than for nonmanufacturing firms.Item Accounting rule making in the private sector : an evaluation of the significance of financial accounting standards in determining the net income of publicly owned corporations(1977) Hendricks, Arthur George; Willingham, John J.; Grinaker, Robert L.; Fry, Clifford L.This dissertation evaluates the effect of the Financial Accounting Standards on the net income of corporations required to file reports with the Securities and Exchange Commission under the Securities Exchange Act of 1934. Under study were Standards No. 2 (research and development), No. 7 (development stage enterprises), No. 8 (foreign currency translation), No. 9 (deferred taxes, oil and gas industry), No. I I (transition for Standard No. 5 (contingencies)), and No. 12 (marketable securities). Standard No. 13 was omitted because it was not effective in 1976. My thesis, that the Standards have not had an impact on net income, was developed from observing that all Standards promoted balance sheet conservatism (i. e., minimizing total assets) and aimed at preventing income manipulation. Since those practices affected only the timing of income, no significant change was expected over the restated periods. I further hypothesized that the Standards reinforced consensus rule makingรขโฌโi. e., they codified what most corporations had been doing all along. In testing my hypotheses, I used two definitions of net income. The first is the common definition: income calculated according to the transaction-based, internal accounting model. Second, since the shareholders of actively traded corporations measure their return by the change in share value plus dividends received, that measure of net income (market return) was also employed. The relevance of accounting net income to the shareholders of these corporations was explored. Furthermore, two unexpected findings were discussed. An initial random sample indicated that the corporate population was not homogeneous because transactions affected by the Standards were present more often in the 3,400 corporations whose shares were actively traded, than in the remaining 6,200 corporations. Therefore, the corporate population was divided into traded and non-traded segments. I also noted that 36% of the corporations disclosed vested pension benefits $ 372 Million in excess of pension fund assets, in apparent noncompliance with APB Opinion 8 and the intent of the Employee Retirement Income Security Act of 1974. Sampling continued until there were 76 and 78 corporations in the traded and non-traded samples, respectively. Reports (where filed) were read for 1972 through 1976 to find accounting changes required by the Standards or voluntarily adopted. Month-end market prices and dividend data were obtained on the traded corporations sample for 1975 and 1976. Differences in net income (before and after various changes) were calculated and tested for significance. Regressions were run on various portfolios to test market impact of Standard No. 8 (the effects of other changes were not tested because of previous studies, insignificance, and manner of implementation). An estimated 3,900 corporations had Standards-related transactions (2/3 traded; less than 1/4 non-traded). The Standards were biased to affect the larger, traded, manufacturing corporation. The highest rate of required change (Standard No. 8) was estimated at 16% (of the traded corporations). Overall, less than 1/3 of the corporations were required to change accounting principles because of the Standards. No significant difference was found in the net income of those required to change by the Standards. But a voluntary change (LIFO) did result in significant differences in net income. Simultaneous F tests of regression coefficients (where an indicator variable was used as a surrogate for market expectation of increased income) were run on portfolios of corporations with and without foreign currency transactions. When the portfolio of corporations was further analyzed into those making required changes and those not having to change, the indicator variable became insignificant. The statements were rerun without the indicator. No significant differences were located in any of the F tests. These results support my hypothesis that the Standards have not had an effect on the reported net income of publicly owned corporations.Item Adapting material requirements planning systems to effectively handle uncertain yield rates(1987) Wilson, James M.; Khumawala, Basheer M.; Yakin, M. Zafer; Scamell, Richard W.; Mitchell, A. CameronMaterial Requirements Planning (MRP) Systems implicitly make a number of assumptions about the environment in which they operate. One significant result of these assumptions is the elimination of uncertainty. Much research has been done where this uncertainty originates from outside the system such as demand or supply variances. These assumptions have been handled through a number of buffering techniques. However, very little work has been done to handle uncertainty which originates internally in the production system. For example, variances in yield rates. This largely uninvestigated aspect of internal uncertainty arises when the output quantity from a production process is uncertain. The typical assumption made is that the output has some deterministic relationship to the input quantity so that appropriate fixed yield rates are incorporated in the bills of material. However, actual yield rates may vary for a variety of reasons: operator error, tool wear, material flaws, etc. Clearly an MRP system must compensate for this internal uncertainty if it is to be effective as a planning and control system. Previous research in this area has largely focused on the single period, single process optimal reject allowance problem. Research in the more complex manufacturing environment such as faced by MRP systems has not provided any detailed discussion of how the problem is structured for analysis, nor has a full range of compensation techniques been investigated. The principal focus of this dissertation is to fill this significant void in the literature. Three compensation techniques studied are: safety stocks, inflated lot sizes, and rescheduling. These techniques could be implemented using either an overall approach which concentrates all compensation activity at the end item level or a level by level approach which spreads the activity throughout the product structure. The effectiveness of these techniques and approaches has been measured through the achieved service level, number and duration of stockouts, and inventory levels. The policies have been investigated under a number of experimental conditions which included: demand variation (high or low), part commonality (high or low), lead time duration (short or long), and order policy (lot-for-lot or period order). The findings have been that demand variability does influence the choice of a compensation policy. The lot inflation policy was the preferred one when the degree of demand variability was greater. We also found that higher levels of component part commonality were more costly but that this did not favor any one policy. The lot sizing policy used was found to be significant since those policies which consolidate several period's demands provide an inherent buffer stock and obviate the need for any further compensation. Our investigation of the influence of lead time duration found that these were not significant unless the lot sizing policy used was insufficient to cover the lead time demand. [...]Item Advance refunding of tax-exempt debt(1984) Scheps, Philip B.; Crockett, John H.; Pettit, R. Richardson; Horvitz, Paul M.; Stern, Louis H.The technique of advance refunding is a transaction whereby issuers provide for the redemption of their bonds in advance of the date the bonds become callable. Typically, a new series of bonds is issued, and the proceeds are used to establish an escrowed portfolio of United States Treasury securities. The purpose of this dissertation is to examine advance refunding from three perspectives: (1) the effect the advance refunding will have on the equilibrium price of a callable bond, (2) the appropriate decision structure for an issuer, and (3) the effect of advance refunding on wealth transfers among bondholders, issuers, and federal taxpayers, and the appropriateness of the current regulatory structure for limiting "abusive" profits from advance refunding. [...]Item An advanced linear programming refinery model(1978) Taylor, Frank Augustus; Thompson, Rusell G.; LaMotte, Lynn R.; Singleton, F. D.In this dissertation a linear programming model of the petroleum refining industry is developed which reflects the age structure of the refining industry. This has been done by creating three classifications for refinery units: old, intermediate, and new, and assigning all refinery capacity to one of the classifications using a rough approximation method. Also modeled are investment opportunities available to refiners, including both investments in new units and investments in the updating of older units. Two major purposes are served by this "vintaging" of petroleum refinery units and representation of investment opportunities. First, refinery product costs may be estimated more accurately, and the sensitivity of these costs to federal and/or state policies may be more reliably determined. Second, curves representing the derived demand for capital in the petroleum refining industry may be constructed by parametric analysis. The model, therefore, represents a tool for studying the interactions of policies affecting environmental, energy, and capital parameters. In this paper the model has been used for several purposes. First, the effect of upward sloping crude oil supply curves on refinery product prices was examined. This analysis was undertaken because it seems possible that there may be some breaks in the pricing solidarity of the oil exporting nations. Piecewise approximations of constant elasticity crude oil supply curves provided a means of studying this contingency. The effect of varying supply elasticities on capital demand within the petroleum refining industry was also studied. Attention has also been given to the interactions of capital application, long run costs, and short run costs in the refining industry. By appropriately adjusting constraints on capital and unit capacities one may use the model to show the effect of capital application on long run and short run costs. It is demonstrated how these interactions can be used to study the dynamic aspects of policy analysis.Item An analysis and modeling of the informational content, premium, and pricing of stock index futures(1987) Ehsani, Hassanali Besharat; Rabinovitch, Ramon; Mitchell, A. Cameron; Hochman, Shalom J.; Esterwood, John C.Recent introduction of new securities, such as the stock index futures and options on futures, have created many unexplored issues. In order to gain some new insights on these markets, this research addresses the following controversial and unresolved issues: A) What is the relationship between the spot stock index price and the futures price, and how the latter should be derermined? B) Does the stock index futures price convey any information regarding the future spot price? C) Is there a risk premium component within the stock index futures price? A summary of the contributions and findings of our research is as follows: 1. An extension of the concept of carrying charges, especially the convenience yield, to financial futures. 2. Using arbitrage and dominance principles, while employing a new procedure to create hedged portfolios, an equilibrium model for the Stock Index Futures contracts is developed. The model not only differentiates between cash and stock dividends, but also incorporates the non-dividend distributions (e. g.; rights, warrants) on the stocks. It further accounts for various explicit transaction costs and the differential borrowing and lending rates. It is shown that all of the pricing models already derived by others, are special cases of the generalized model developed here. Moreover, the research delineates the differences in the futures prices under perfect, semiperfect, and imperfect market settings. It is shown that, contrary to common assumptions, these prices will generally nor equal each other. 3. Most academicians have argued that futures prices do not convey any additional information, relarive to the current spot prices, regarding the maturity (future) spot price. Here, we have advanced a set of theoretical arguments leading to a contrary hypothesis. 4. Using a superior econometric methodology, the hypotheses of informational content and risk premium factors within the stock index futures price have empirically been tested. 5. The analyses and statistical tests support both of the above hypotheses. These new findings are contrary to most previously published results. Some significant statistical reasons for the inconclusiveness of other research findings on related topics are presented.Item An analysis of the effectiveness of the research and experimentation tax credit within a q model of valuation(1988) Coberly, Janet Wood; Pratt, James W.; Gamble, George O.; Craig, Steven G.; Thompson, Steven C.The purpose of this research is to analyze whether the R&D credit has been effective in increasing R&D activities among the firms constituting the primary target group over the period 1981 through 1985. Within the framework of Tobin's q theory [Tobin, 1969] this study identifies firms for which the R&D credit provided an incentive. The thesis of the research is that the R&D credit will provide more of an incentive to increase R&D activity for firms in equilibrium, with q equal to one, than for firms with q ratios either above or below one. The methodology of the study groups firms according to their q ratios. The influence of the credit across groups, working through the user cost of R&D [Cordes, et al., 1987], is then empirically tested. The credit is a significant determinant of investment in research and development for firms in the study. Consistent with expectations, it provides more of an incentive to increase R&D expenditures for firms in equilibrium, q equal to one, than for firms with q values either above or below one. Cost-benefit analysis shows that the R&D credit was not cost effective for firms with q greater than one. The findings of this study provide timely new evidence for Congress which is essential to efficient redesign of the credit to achieve tax policy objectives. The results have important implications for both tax policy and accounting policy research.