Econometric properties of asset valuation rules under price movements and measurement errors: an empirical test
Article Abstract:
Actual price data was used to evaluate certain econometric properties of accounting valuation rules proposed by previous accounting research, which were revealed to be linear aggregations of quantities and prices. The study used current order prices for 4,875 machinery and equipment assets from price indices published between 1973 and 1980 to simulate asset portfolios in order to measure value changes by decomposing errors in valuation into movement and measurement components. Research results reveal that there is zero movement error bias, but nonzero measurement error bias; that mean-squared error movement and measurement errors decline with the use of increasingly sophisticated indices, but increase as the period of holding assets increases; and that the major source of overall error is measurement error.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1990
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Popper's methodology of falsificationism and accounting research
Article Abstract:
Accounting researchers should not view Popper's falsificationism as an attainable ideal. The conventional standards of rigor and experimental design are sufficient to assure proper technique. Christenson's (1983) criticism of Watts and Zimmerman's (1978, 1979) theories has been used as an example for the comparison of conventional standards of experimental design to Popper's falsificationism.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1988
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