Akron Business and Economic Review

Articles

Vol. 21, No. 4, Winter

An Analysis of the Value-Added Tax as an Alternative Source of Federal Revenue
The reluctance of the Administration and Congress to respond to the continuing federal budget deficit by raising income tax rates and/or reducing spending, combined with the shrinking number of tax loopholes and base broadeners, has prompted the consideration...
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Reaction of Savings and Loan Share Prices to Increased Capital Requirements
On November 28, 1988, the Federal Home Loan Bank Board (FHLBB) announced proposed changes in capital requirements for thrifts. These requirements were designed to be phased in and to take full effect by January 1, 1993. According to a report in the...
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Sustaining the Positive Effects of Goal Setting: The Positive Influence of Peer Competition
Goal setting is probably the most frequently discussed management practice over the past 30 years. Unfortunately, as with most management terminology, "goal" and "goal setting" take on different meanings depending on the context in which they are...
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Negative Appeals: The Neglected Side of Promotion -- a Comprehensive Examination
The people explaining the 1979 accident at Three Mile Island tried creatively to repackage and market their negative situation into something more positive. Their press releases, for example, described the fires as "rapid oxidation" and the explosion...
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An Analysis of the Economic Impact and the Anticipated Reactions of Clients to Management Consultants' Defections from Public Accounting Firms
Over the past few years, the issues of compensation and firm direction have become increasingly important to management consulting partners of major public accounting forms. While growth in the audit and tax practices has slowed, rapid expansion has...
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Stock Market Recognition of Multinationality: An Empirical Study of U.S. Markets
To the extent that business cycles tend to behave independently across different countries and that there exist imperfections in international markets for products, capital, and other factors, foreign operations by firms should provide their stockholders...
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CPE for CMAs: How Is It Acquired?
Continuing professional education (CPE), the cornerstone of a competent professional, is the key to maintaining professional competence in a rapidly changing world. Many professional associations, including doctors, lawyers, nurses, engineers, dietitians,...
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Portfolio Performance: Evaluation and Re-Evaluation
Since the groundbreaking efforts of Treynor [11], Sharpe [10], and Jensen [4], portfolios have been evaluated on the basis of how favorable they compare with an expected (or required) rate of return. In Sharpe's scheme, that return is an increasing...
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Awareness and Evaluation of Selected Marketing Journals Inside and outside the Discipline: An Empirical Study
It has been reported that research productivity is a dominant criterion for promotion and tenure decisions involving business school faculty and marketing faculty in particular [2, 3]. Such productivity is typically measured in terms of publications...
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Vol. 21, No. 3, Fall

The Use of the Range and Mean Deviation in Interpreting the Standard Deviation
The Use of the Range and Mean Deviation in Interpreting the Standard Deviation With the emergence of sophisticated MIS systems, today's businessmen and women have more access to statistical data than ever before. Many of these individuals have difficulty...
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A Comparison and Test of the Use of Accounting and Stock Market Data in Relating Corporate Social Responsibility and Financial Performance
A Comparison and Test of the Use of Accounting and Stock Market Data in Relating Corporate Social Responsibility and Financial Performance Management and finance can be enriched tremendously by research that crosses boundary lines[9, 28, 33, 38, 40]....
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CPA's Attitudes toward Advertising and Its Professionalism
CPAs' Attitudes Toward Advertising and Its Professionalism In 1978 the American Institute of Certified Public Accountants (AICPA) revised its Code of Professional Ethics to allow advertising and solicitation. The AICPA decided to revise the Code after...
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Investing in the Options of Takeover Target Firms
Investing in the Options of Takeover Target Firms The large abnormal returns available to the common shareholders of takeover target firms has received considerable attention in the financial literature. Jensen and Ruback [6] review previous studies...
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Risk Reduction and Informal Interpersonal Influence: Industrial Marketing Management Perspectives
Risk Reduction and Informal Interpersonal Influence: Industrial Marketing Management Perspectives Perceived risk has been an integral part of the buying behavior literature for several decades. The seminal work by Bauer [4] set the stage for definitively...
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CD Market Response to the Citicorp Loan-Loss Reserve Decision and the International Debt Crisis of 1987
CD Market Response to the Citicorp Loan-Loss Reserve Decision and the International Debt Crisis of 1987(*) On May 19, 1987, Citicorp announced that it would augment its loan-loss reserve by $3 billion to cover potential losses on loans to less-developed...
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The Linkage between Organizational Size and the Management Accounting System
The Linkage Between Organizational Size and the Management Accounting System Organizational and management theorists have recognized since the mid-1960s that there is no "one best way" to design an organization. Organizations differ because of their...
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Marketing Differences between Large and Small Firms: A Test of the Industrial/consumer Dichotomy Hypothesis
Marketing Differences Between Large and Small Firms: A Test of the Industrial/Consumer Dichotomy Hypothesis Marketing scholars often distinguish between industrial and consumer marketing course offerings, journals, conferences, theories, and textbooks....
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Do LBOs Sustain Efficiency Gains?
Do LBOs Sustain Efficiency Gains? The occurence of leveraged buyouts has become a commonplace event in the financial community. Only the size of the LBO, such as the recent $24.9 billion bid for RJR-Nabisco, continues to dazzle the investment public....
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Vol. 21, No. 2, Summer

The Relationship of Asset Flow Measures to Bond Ratings
The Relationship of Asset Flow Measures to Bond Ratings In recent times there has been increased interest in the potential decision usefulness of asset flow measures (i.e., income, income plus depreciation, working capital from operations, and cash...
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Product Differentiation: Everybody Is Looking for the Holy Grail
Product Differentiation: Everybody Is Looking for the Holy Grail(*) The concept of product differentiation was formally introduced by Edward Chamberlin in 1933. According to Chamberlin: A general class of product is differentiated if any significant...
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Establishing Formal Specialties within the Accounting Profession
Establishing Formal Specialties Within the Accounting Profession In its 1985-86 Annual Report, the American Institute of Certified Public Accountants (AICPA) [1, p. 213] stated, "recognizing the existence of de factor specialization among members...
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The Influence of Confucianism and Zen on the Japanese Organization
The Influence of Confucianism and Zen on the Japanese Organization The success of Japanese work organizations as productive systems is certainly remarkable, but a large part of it is attributable to what the Japanese borrowed from Western culture....
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The U.S. Steel Trigger Price Mechanism: Import Impact and Strategic Response
The U.S. Steel Trigger Price Mechanism: Import Impact and Strategic Response In 1947 American steel producers were the most efficient and most productive in the world. They produced 57 percent of the world steel output, an amount that was 82.4 times...
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Measuring Quality Costs at the Corporate Level: An Empirical Analysis of Empirical Determinants
Measuring Quality Costs at the Corporate Level: An Empirical Analysis of Organizational Determinants* Corporate accountants have been urged to extend their measurements to the areas of productivity [29], new product innovation [4], and quality [18,...
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Market Structure and Financial Leverage: Does Market Power Affect Debt and Equity Decisions?
Market Structure and Financial Leverage: Does Market Power Affect Debt and Equity Decisions? The issue of capital structure has been a subject of intense debate among researchers for the last quarter of a century. Various theories have been developed...
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Monetary Policy Uncertainty, Money Elasticities, and Interest Rates
Monetary Policy Uncertainty, Money Elasticities, and Interest Rates One of the hypotheses advanced to explain the persistence of high interest rates after 1979 is that the volatility of monetary policy, particularly after the October policy change,...
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The Implications of Tax Reforms on Firm Valuation and Management Decisions
The Implications of Tax Reforms on Firm Valuation and Management Decisions* Due to accounting conventions and accrual concepts, actual cash receipts and actual cash outlays resulting from investment in real assets vary from the reported accounting...
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Vol. 21, No. 1, Spring

A New Approach for Jointly Evaluating the "Six Cs" of Loan Analysis
A New Approach For Jointly Evaluating The "Six Cs" of Loan Analysis(*) Most financial management textbooks discuss the five Cs of credit analysis--capacity, capital, character, collateral, and conditions--in relationship to the evaluation of a given...
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New Accounting Rules for Special Assessments
New Accounting Rules For Special Assessments When the National Council on Governmental Accounting (NCGA) revised the basic accounting principles for governmental units in 1979, its final product--NCGA Statement No. 1[4]--was generally acknowledged...
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Anomaly Sensitivity to Business Conditions
Anomaly Sensitivity To Business Conditions In a recent edition of this journal, Erickson, Fredman, and Stickels[14] documented the greater importance of the price/earnings ratio relative to the price/sales ratio. They concluded that the price/sales...
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The Fine Art of Performance Appraisal: The Case of Overkill
The Fine Art of Performance Appraisal: The Case of Overkill Performance appraisal can be conceptualized as a memory-based task in which raters acquire, encode, store, and later retrieve performance information to make a judgment[2]. A close review...
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The Influence of Major Lawsuits on Common Stock Returns
The Influence Of Major Lawsuits On Common Stock Returns(*) The purpose of this paper is to measure the impact on the price of a firm's common stock of the announcement or settlement of a major lawsuit against the firm. There are several reasons why...
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Abnormal Gains for Insiders Trading Prior to Unexpected Corporate Earnings and Dividend Announcements
Abnormal Gains For Insiders Trading Prior To Unexpected Corporate Earnings And Dividend Announcements According to the strong form of the efficient market hypothesis, at any time all relevant information, whether public or private, is already reflected...
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Using the Analytic Hierarchy Process for Small Business Decision Making
Using The Analytic Hierarchy Process For Small Business Decision Making Small businesses face many of the same decisions as the largest corporations do, but they may not have the resources necessary to develop the information required to make the...
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Corporate Insiders, Toehold Acquisitions, and Information Leakage: Do Insiders Tip Their Hands?
Corporate Insiders, Toehold Acquisitions, And Information Leakage: Do Insiders Tip Their Hands? In the search for competitive advantages, investors have for many years attempted to ape the actions of those believed to possess nonpublic information....
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Reporting Entity Size and the Need for Accounting Information
Reporting Entity Size And The Need For Accounting Information(*) Differentiation in financial reporting on the basis of size and ownership characteristics has been an accounting policy issue for several years. Supporters of differentiation argue that...
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Vol. 20, No. 4, Winter

Why Companies Do Not Seek Exchange Listing
Why Companies Do Not Seek Exchange Listing(*) Traditionally, listing on the New York Stock Exchange (NYSE) or the American Stock Exchange (AMEX) has been viewed as a milestone in the corporate life cycle. According to Cooney[4], however, an increasing...
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Intertemporal Testing of Beta Stationarity
Intertemporal Testing of Beta Stationarity After Sharpe [34] developed the market model for analyzing portfolios, financial experts have concentrated on beta coefficients of the mean-variance capital asset pricing model (MV-CAPM) and, with somewhat...
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A Study of the Relative Performance of Investment Companies in Canada
A Study Of The Relative Performance Of Investment Companies In Canada Canadian investors basically have the choice of either managing their own portfolios or delegating this function to some party retained for this purpose. Included among the options...
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Comparative Financial Portfolios of Bank and Nonbank Customers: Evidence from the Survey of Consumer Finances
Comparative Financial Portfolios of Bank and Nonbank Customers: Evidence from the Survey of Consumer Finances An already competitive financial environment is likely to become even more competitive in the future as commercial banks, thrifts, and credit...
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Sexual Harassment at Work: What Is the Problem?
Sexual Harassment At Work: What Is The Problem? As judicial decisions gradually expanded the Title VII Civil Rights Act prohibiting sex discrimination to include sexual harassment, the number of articles discussing this workplace problem also expanded....
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A Trading Model Demonstrating the Usefulness of Accounting-Reported Cash Flow Information
A Trading Model Demonstrating the Usefulness of Accounting-Reported Cash Flow Information The accounting and financial communities have recently asserted that cash flow analysis is fundamental in assessing an economic entity. The Financial Accounting...
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An Empirical Comparison of Bond Return Forecast Methods
An Empirical Comparison of Bond Return Forecast Methods The forecasting of corporate bond returns has had varying degrees of interest in the academic literature. The greater variability in interest rates over the past ten to fifteen years has highlighted...
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A Note on the Effect of Personal Taxes and Dividends on Capital Asset Prices
A Note On The Effect Of Personal Taxes And Dividends on Capital Asset Prices(*) In spite of the 1986 change in the tax laws that equate the personal tax rate on both dividend and capital gains income, the effect of differential taxation of capital...
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Different Types of "Reactors" in High-Technology Industries: An Empirical Study
Different Types Of "Reactors" In High-Technology Industries: An Empirical Study The primary purpose of this study is to investigate unsuccessful firms called "reactors." These firms were named by Miles and Snow[14], who have developed a typology of...
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Vol. 20, No. 3, Fall

A Test of the Applicability of the Black-Scholes Call Option Pricing Model: Valuing S&P 100 Index Call Options
A Test Of The Applicability Of The Black-Scholes Call Option Pricing Model: Valuing S&P 100 Index Call Options Financial markets worldwide have experienced unprecedented volatility in the recent past. The cause of such volatility is of much debate....
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Potential Employer Liability for the Disclosure of Employee Information
Potential Employer Liability For The Disclosure of Employee Information The maintenance and dissemination of information related to current and former employees have rapidly emerged as areas that are ripe for potential litigation by employees who...
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Measuring the Eminence of Business Schools: A Longitudinal Analysis
Measuring the Eminence of Business Schools: A Longitudinal Analysis University business schools compete directly with each other for scarce resources. Today, the competitive struggle for faculty, students, and respectability rages, and it is more...
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An Empirical Study of Asset Size, Financial Leverage, and Stock Market Anomalies
An Empirical Study Of Asset Size, Financial Leverage, And Stock Market Anomalies Empirical research has confirmed that stock market anomalies, such as the small firm effect [1, 3, 4, 6, 7, 8, 9] and the price to earnings ratio (P/E) effect [2, 3,...
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Nonadopters of Automatic Teller Machines
Nonadopters Of Automatic Teller Machines The adoption and diffusion processes are two interrelated theoretical concepts that have received considerable attention in the literature. Adoption occurs at the micro level, within the mind of the consumer,...
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Bank Merger Bids, Managerial Control and Value Maximization
Bank Merger Bids, Managerial Control And Value Maximization (*1) The traditional theory of the firm is based on the assumption that management acts in the best interest of the stockholders, which is value maximization. In line with such a principle,...
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A Re-Examination of Residuals around the Ex-Dividend Date
A Re-Examination Of Residuals Around The Ex-Dividend Date Much controversy exists about whether share prices are affected by a dividend-related tax effect on the day the stock goes ex-dividend. Campbell and Beranek [3] and Elton and Gruber [6] were...
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Stock Splits and Return Volatility
Stock Splits And Return Volatility A stock split by itself is merely an accounting change with no change in firm value. It does not alter the total market value of shareholders' wealth; hence, there should be no effect on stock returns or return...
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An Empirical Investigation of the Predictive Power of Accrual and Cash Flow Data in Forecasting Operating Cash Flow
An Empirical Investigation Of The Predictive Power Of Accrual And Cash Flow Data In Forecasting Operating Cash Flow A primary objective of accounting information is to help financial statement users forecast the amounts, timing, and uncertainty of...
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Vol. 20, No. 2, Summer

Profiling the Mature Fashion-Conscious Apparel Shopper
Profiling The Mature Fashion-Conscious Apparel Shopper Market segmentation and submarket profiling are two widely used strategic marketing tools. While marketing research has addressed the segmenting of student and adult populations, only minor attention...
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Outside Directors and Managerial Monitoring
Outside Directors and Managerial Monitoring* In recent years, the role of the board of directors of a corporation has received considerable attention in both the popular press [2] and academic journals [5,6]. The board is seen in an agency theoretic...
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A Comparative Evaluation of Methods for Combining Forecasts
A Comparative Evaluation of Methods for Combining Forecasts* Traditionally, the forecast choice problem has assumed the existence of a "best" forecast or method among the available ones and focused on the search and identification of the most appropriate...
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Predicting Consumer Outshopping Activity: A Propensity to Outshop Scale
Predicting Consumer Outshopping Activity: A Propensity to Outshop Scale Retailers are daily immersed in an environment of intense competition. The more prevalent view of retail competition is to appraise the retailers located within the local trading...
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Why Companies Pay No Dividends
Why Companies Pay No Dividens When considering dividend policy, corporate policymakers are influenced by many factors. These considerations include the company's goals and situational factors such as current and anticipated future earnings, reinvestment...
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Stock Returns and the Weekend Effect in Canada
Stock Returns And The Weekend Effect In Canada The existence of the weekend effect has been proven through different studies by Cross [4], French [7], Gibbons and Hess [8], Coats [2], Lakonishok and Levi [16], Hindmarch, Jentsch, and Drew [11], Keim...
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Miles and Snow's Typology of Strategy, Perceived Environmental Uncertainty, and Organizational Performance
Miles And Snow's Typology Of Strategy, Perceived Environmental Uncertainty, And Organizational Performance Formulating and implementing strategy congruent to external environment have been an important challenge for many top executives. Much research...
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Corporate Dividends: Views of Institutional Investors
Corporate Dividends: Views of Institutional Investors* Corporate dividend policy has long been a subject of debate, discussion, and research in finance, but the field has not reached a sense of closure.1 Black [7] expressed this lack of closure over...
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Vol. 20, No. 1, Spring

Causality, Regression, Discriminant Analysis, and Research on Failure
Causality, Regression, Discriminant Analysis, and Research on Failure(*) It is natural that lenders, investors, and regulators would like to have some empirical insight into the default risk of the firms and financial institutions with which they...
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Formulating the Firm's Political Action Strategy: A Corporate Budgeting Perspective
Formulating the Firm's Political Action Strategy: A Corporate Budgeting Perspective The U.S. corporate community increasingly is defining for itself a more active role in the shaping of public policy, with particular reference to those policies that...
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The SEC Approves the Use of Differential Reporting
The SEC Approves The Use Of Differential Reporting On January 20, 1987, the Securities and Exchange Commission (SEC) ruled that companies whose securities are publicly traded on US security markets may henceforth produce an annual report in whatever...
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The Diffusion of Innovations Theory: Some Research Questions and Ideas
The Diffusion Of Innovations Theory: Some Research Questions And Ideas To expand the scope of scientific knowledge, it is necessary to logically integrate relevant items of knowledge, fill gaps within the specified body of knowledge, and strive for...
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An Empirical Measurement of Default Premium on Municipal Bonds and the Miller Hypothesis
An Empirical Measurement of Default Premium on Municipal Bonds and The Miller Hypothesis According to Miller[8], under the assumption of complete capital market and escapable taxes on equity, the personal tax rate of the marginal bond holder is equal...
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Equally Weighted Market Return and Value Weighted Market Return as a Proxy of the Market Index: An Empirical Study
Equally Weighted Market Return And Value Weighted Market Return As A Proxy Of The Market Index: An Empirical Study(*) Beta has been extensively used by both practitioners and academicians as a measure of the the systematic risk of a firm. Investors...
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Preventing Fraud: Users and Preparers Speak
Preventing Fraud: Users and Preparers Speak A nationwide survey of the four groups most affected by new auditing standards to detect and prevent fraud shows a negative consensus on many of the crucial assumptions behind the standards and a pervasive...
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Insights into the Relationship between Strategic Momentum and Environmental Scanning: An Empirical Analysis
Insights Into The Relationship Between Strategic Momentum And Environmental Scanning: An Empirical Analysis In today's environment, organizational survival may hinge on the organizations's understanding and application of two notions: environmental...
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A Comprehensive Look at Tax Court Valuation
A Comprehensive Look At Tax Court Valuation The valuation of property is an issue that arises in many areas of tax accounting. When disputes over value between the taxpayer and the government occur, the United States Tax Court is most often the forum...
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