Complementarity of prior accounting information: the case of stock dividend announcements
Article Abstract:
Market reactions to stock dividend announcements are conditioned by previously disclosed firm-specific accounting information. Prior information on retained earnings, capital expenditures, operational funds and dividend history affects the way investors are likely to view a firm's current announcements of stock dividends and other performance indicators. The study uses CRSP daily returns and 1984 industrial COMPUSAT data on firms that declared dividends between 1976-1983 to test this hypothesis. Although stock dividend announcements are normally accompanied by positive market reactions, other indicators such as increases in cash dividends may have stronger effects. Thus, complementarity between old and new accounting information is responsible for the uncertainty with which the market assesses announcements of stock dividends.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1993
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Economic sufficiency and statistical sufficiency in the aggregation of accounting signals
Article Abstract:
Managerial accountants are required to create performance measures for managers using several aggregate accounting numbers. Aggregation is a process in which different signals are combined to create a single, weighted measure of managerial performance. Research indicates that the method of aggregation often differs for performance evaluations of different managers. Differences in aggregation methods used by accountants are dependent on managers' preference functions and actions by owners. Research reveals that it is possible to aggregate accounting signals for performance evaluation without economic loss to the principle. Information lost in a statistical sense does not result in economic loss because the lost information is of no value for evaluating managerial performance.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1990
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A model to evaluate variables impacting the productivity of software maintenance projects
Article Abstract:
A model was developed for assessing the factors that affect the productivity of software maintenance projects. The production frontier model was developed by using a technique that allowed the production frontier and the impact of a number of productivity factors to be estimated at the same time. A data set of 65 commercial bank software maintenance projects was used to estimate the model. The model provides software maintenance managers with a quantifiable estimate of the productivity effects of several environmental variables under managerial control. A fairly small number of crucial variables may explain a large amount of the productivity variations at a particular site.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1991
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