Front Matter Source: The Accounting Review, Vol. 66, No. 4 (Oct., 1991), pp. 767-808 Published by: American Accounting Association Stable URL: http://www.jstor.org/stable/248149 . Accessed: 10/06/2014 00:34 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. . American Accounting Association is collaborating with JSTOR to digitize, preserve and extend access to The Accounting Review. http://www.jstor.org This content downloaded from 188.72.127.42 on Tue, 10 Jun 2014 00:34:32 AM All use subject to JSTOR Terms and Conditions
Transcript
Front MatterSource: The Accounting Review, Vol. 66, No. 4 (Oct., 1991), pp. 767-808Published by: American Accounting AssociationStable URL: http://www.jstor.org/stable/248149 .
Accessed: 10/06/2014 00:34
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .http://www.jstor.org/page/info/about/policies/terms.jsp
.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact [email protected].
.
American Accounting Association is collaborating with JSTOR to digitize, preserve and extend access to TheAccounting Review.
http://www.jstor.org
This content downloaded from 188.72.127.42 on Tue, 10 Jun 2014 00:34:32 AMAll use subject to JSTOR Terms and Conditions
SUK S. LIM and SHYAM SUNDER Efficiency of Asset Valuation Rules Under Price Movement and Measurement Errors
STEVEN J. KACHELMEIER, STEPHEN T. LIMBERG, and MICHAEL S. SCHADEWALD A Laboratory Market Examination of the Consumer Price Response to Information about Producers' Costs and Profits
RAY BALL and S. P. KOTHARI Security Returns Around Earnings Announcements
JOHN R. M. HAND Extended Functional Fixation and Securit Returns Around Earnings Announcements: A Reply to Ball and Kot(ari
STANLEY BAIMAN and KONDURU SIVARAMAKRISHNAN The Value of Private Pre-Decision Information in a Principal-Agent Context
A FORUM ON THE USE OF LIMITED-DEPENDENT VARIABLES IN ACCOUNTING RESEARCH
MOHAMED SHEHATA Self-Selection Bias and the Economic Consequences of Accounting Regulation: An Application of Two-Stage Switching Regression to SFAS No. 2
G. S. MADDALA A Perspective on the Use of Limited-Dependent and Qualitative Variables Models in Accounting Research
SHORTER ARTICLES S. DAVID YOUNG
Interest Group Politics and the Licensing of Public Accountants WILLIAM R. BABER, PATRICIA M. FAIRFIELD, and JAMES A. HAGGARD
The Effect of Concern about Reported Income on Discretionary Spending Decisions: The Case of Research and Development
PAUL A. GRIFFIN and SAMOA J. R. WALLACH Latin American Lending by Major U.S. Banks: The Effects of Disclosures about Nonaccrual Loans and Loan Loss Provisions
JOHN A. ELLIOTT, J. DOUGLAS HANNA, and WAYNE H. SHAW The Evaluation by the Financial Markets of Changes in Bank Loan Loss Reserve Levels
MAURICE MOONITZ Memorial, William Joseph Vatter-(1905-1990)
A Q U A R T ER L Y JO U Rt N AIL OIF T H E
AMERICAN ACCOUNTING ASSOCIATION
This content downloaded from 188.72.127.42 on Tue, 10 Jun 2014 00:34:32 AMAll use subject to JSTOR Terms and Conditions
The American Accounting Association was founded in 1916 as the American Association of University Instructors in Accounting. Its present name was adopted in 1936. The Association is a voluntary organization of persons interested in accounting education and research. Full member- ship entitles one to receive The Accounting Review, Accounting Education News, Accounting Horizons, and Issues in Accounting Education, and to purchase Association publications at a discount.
The members of the 1990-91 Executive Committee of the Association are as follows:
President Arthur Wyatt, Arthur Andersen & Company President-Elect Gary L. Sundem, University of Washington Vice President Mark A. Wolfson, Stanford University Vice President David A. Wilson, Ernst & Young Vice President Andre Zund, University of St. Gall-Switzerland Secretary-Treasurer Jane 0. Burns, Texas Tech University Director of Education Corine T. Norgaard, University of Connecticut Director of Research Nicholas Dopuch, Washington University Director of Publications Kenneth J. Euske, Naval Postgraduate School Past President Alvin A. Arens, Michigan State University
The Executive Director of the Association is Paul L. Gerhardt.
Membership in the Association is available at the following annual rates:
Full membership, US and Canada: US $65.00
Full membership, other countries: US $65.00
Associate membership: US $12.00 for students residing in the United States and Canada
In addition, full members may belong to one or more Sections: Auditing; Information Systems/Management Advisory Services; Two-Year Colleges; International Accounting; Public Interest; Government and Nonprofit; Taxation; Administrators of Accounting Programs; Accounting, Behavior and Organizations; and Management Accounting. Each Section assesses its own annual dues which are collected by the Association.
The Accounting Review is published quarterly by the American Accounting Association- January, April, July, and October: printed by George Banta Company, Inc., Menasha, Wisconsin. Subscription price is $90.00 per year.
Second class postage paid at Sarasota, Florida and at additional mailing offices.
Copyright ? American Accounting Association. All rights reserved. Printed in the United States of America. ISSN 0001-4826.
Editorial correspondence and all manuscripts should be sent to Professor A. Rashad Abdel-khalik, Editor, The Accounting Review, Fisher School of Accounting, College of Business Administration, University of Florida, Gainesville, FL 32611.
The submission fee of $50.00 for members of the AAA or $100.00 for nonmembers must accompany manuscripts when submitted. Books for review should be sent to Professor Shane R. Moriarity, School of Accounting, University of Oklahoma, Norman, OK 73019. Request for reprint permission, subscriptions, advertisements, and dues should be sent to Mr. Paul Gerhardt, American Accounting Association, 5717 Bessie Drive, Sarasota, FL 34233. Notice of change of address should be mailed at least eight weeks in advance to ensure undelayed receipt of The Accounting Review.
This content downloaded from 188.72.127.42 on Tue, 10 Jun 2014 00:34:32 AMAll use subject to JSTOR Terms and Conditions
Robert H. Ashton John S. Hughes Andrew D. Bailey, Jr. Richard A. Lambert Bala V. Balachandran James C. McKeown Victor L. Bernard Ira Solomon Ronald W. Hilton Shyam Sunder
VOL.66 OCTOBER 1991 No.4
SUK S. LIM and SHYAM SUNDER Efficiency of Asset Valuation Rules Under Price Movement and Measurement Errors ........... ............................... 669
STEVEN J. KACHELMEIER, STEPHEN T. LIMBERG, and MICHAEL S. SCHADEWALD A Laboratory Market Examination of the Consumer Price Response to Information about Producers' Costs and Profits ...................... 694
RAY BALL and S. P. KOTHARI Security Returns Around Earnings Announcements ..... ............... 718
JOHN R. M. HAND Extended Functional Fixation and Security Returns Around Earnings Announcements: A Reply to Ball and Kothari ......................... 739
STANLEY BAIMAN and KONDURU SIVARAMAKRISHNAN The Value of Private Pre-Decision Information in a Principal-Agent Context .......... ................................. 747
A FORUM ON THE USE OF LIMITED-DEPENDENT VARIABLES IN ACCOUNTING RESEARCH
MOHAMED SHEHATA Self-Selection Bias and the Economic Consequences of Accounting Regulation: An Application of Two-Stage Switching Regression to SFAS No. 2 ...... 768
G. S. MADDALA A Perspective on the Use of Limited-Dependent and Qualitative Variables Models in Accounting Research ...... ................... 788
Contents continued on Overleaf
This content downloaded from 188.72.127.42 on Tue, 10 Jun 2014 00:34:32 AMAll use subject to JSTOR Terms and Conditions
S. DAVID YOUNG Interest Group Politics and the Licensing of Public Accountants .... ...... 809
WILLIAM R. BABER, PATRICIA M. FAIRFIELD, and JAMES A. HAGGARD The Effect of Concern about Reported Income on Discretionary Spending Decisions: The Case of Research and Development ..... ................ 818
PAUL A. GRIFFIN and SAMOA J. R. WALLACH Latin American Lending by Major U.S. Banks: The Effects of Disclosures about Nonaccrual Loans and Loan Loss Provisions .... .... 830
JOHN A. ELLIOTT, J. DOUGLAS HANNA, and WAYNE H. SHAW The Evaluation by the Financial Markets of Changes in Bank Loan Loss Reserve Levels ............ ................................... 847
MAURICE MOONITZ MEMORIAL, William Joseph Vatter-(1905-1990) ..... .................. 862
BOOK REVIEWS, Shane Moriarity, Editor
Canto and Laffer, Monetary Policy, Taxation, and International Investment Strategy .......................... ROBERT C. RICKETTS 866
Coombs and Edwards, Accountability of Local Authorities in England and Wales, 1831-1935 .......................... JOSEPH R. RAZEK 867
Heyman and Bloom, Opportunity Cost in Finance and Accounting .............
.................................................. ............................................. ARA G. VOLKAN 868 Ketz, Doogar, and Jensen, A Cross-Industry Analysis of Financial Ratios:
Comparability and Corporate Performance ..... . YAW M. MENSAH 869 Lesko, The Federal Data Base Register ........ .......... JOSEPH WEINTROP 870 Van Dijk and Williams, Expert Systems in Auditing ... PAUL JOHN STEINBART 871 List of Books Received ............................. 872 Editorial Policy and Style Information .............................. 873 Index to Volume 66 ............................. 876
PAST EDITORS 1926-1929 William A. Paton 1929-1943 Eric L. Kohler 1944-1947 A. C. Littleton 1948-1949 Robert L. Dixon 1950-1959 Frank P. Smith 1960-1962 Robert K. Mautz 1963-1964 Lawrence L. Vance 1965-1967 Wendell Trumbull
1968-1970 Charles H. Griffin 1971-1972 Eldon S. Hendriksen 1973-1975 Thomas F. Keller 1976-1978 Don T. DeCoster 1978-1983 Stephen A. Zeff 1983-1987 Gary L. Sundem 1987-1989 William R. Kinney, Jr.
This content downloaded from 188.72.127.42 on Tue, 10 Jun 2014 00:34:32 AMAll use subject to JSTOR Terms and Conditions
Editorial Staff of The Accounting Review (1990-91)
MANAGING EDITOR AND EDITOR
A. Rashad Abdel-khalik, University of Florida
ASSOCIATE EDITORS
Robert H. Ashton, Duke University Andrew D. Bailey, University of Arizona
Bala V. Balachandran, Northwestern University Victor L. Bernard, University of Michigan
Ronald W. Hilton, Cornell University John S. Hughes, University of Minnesota Richard A. Lambert, Stanford University
James C. McKeown, Pennsylvania State University Ira Solomon, University of Illinois at Urbana-Champaign
Shyam Sunder, Carnegie Mellon University
Book Review Editor: Shane Moriarity, University of Oklahoma
Copy and Production: Patricia M. Calomeris
EDITORIAL ADVISORY AND REVIEW BOARD
Matthew Anderson, Michigan State University Urton L. Anderson, University of Texas at Austin Rowland K. Atiase, University of Texas at Austin Frances L. Ayres, University of Oklahoma Ravi Bhushan, Massachusetts Institute of
Technology Gary C. Middle, University of Washington James R. Boatsman, Arizona State University Peter Brownell, University of Melbourne,
Australia John Christensen, Odense Universtet Julie H. Collins, University of North Carolina-
Chapel Hill Barry E. Cushing, University of Utah Masako Darrough, Columbia University Srikant Datar, Stanford University Douglas DeJong, University of Iowa Joel S. Demski, Yale University John A. Elliott, Cornell University John H. Evans, University of Pittsburgh Haim Falk, McMaster University John E. Fellingham, University of Illinois
at Urbana-Champaign Michael Gibbins, University of Alberta Dan Givoly, Tel-Aviv University and Northwestern
University Robert M. Halperin, Fordham University James V. Hansen, Brigham Young University Trevor S. Harris, Columbia University Paul M. Healy, Massachusetts Institute of
Technology Robert W. Holthausen, University of Pennsylvania Herbert G. Hunt, III, University of Vermont Rhoda C. Icerman, Florida State University Prem C. Jain, Tulane University Chandra Kanodia, University of Minnesota Lauren Kelly, University of Washington April Klein, New York University
W. Robert Knechel, University of Florida S. P. Kothari, University of Rochester Young K. Kwon, University of Illinois at Urbana-
Champaign David Larcker, University of Pennsylvania Baruch Lev, University of California at Berkeley Barry L. Lewis, University of Colorado at Boulder Robert Libby, Cornell University Marlys G. Lipe, University of Michigan Martin P. Loeb, University of Maryland Robert P. Magee, Northwestern University Ajay Maindiratta, New York University Kathleen T. McGaharan, Columbia University Maureen McNichols, Stanford University Barbara D. Merino, University of North Texas Jane F. Mutchler, Pennsylvania State University Nandu Nagarajan, University of Pittsburgh Eric W. Noreen, University of Washington Krishna Palepu, Harvard University Zoe-Vonna Palmrose, University of Southern
California Kenneth V. Peasnell, University of Lancaster Mark C. Penno, University of Chicago Hasan Pirkul, The Ohio State University Michael D. Shields, San Diego State University Rajendra P. Srivastava, University of Kansas Mary S. Stone, University of Alabama Charles W. Swenson, University of Southern
California Ken Trotman, University of New South Wales Senyo Tse, University of Texas at Austin William S. Waller, University of Arizona Gregory Waymire, Emory University John J. Wild, University of Wisconsin at Madison Earl R. Wilson, University of Missouri at Columbia G. Peter Wilson, Harvard University William F. Wright, University of California at
Irvine
This content downloaded from 188.72.127.42 on Tue, 10 Jun 2014 00:34:32 AMAll use subject to JSTOR Terms and Conditions
1. Mohamed Shehata Self-Selection Bias and Economic Consequences of Accounting Regulation: An Application of Two-Stage Switching Regression to SFAS No. 2
2. G. S. Maddala A Perspective on the Use of Limited-Dependent and Qualitative Variables Models in Accounting Research
Editor's Note: A "Forum" is a collection of articles around a common theme. Accepted refereed articles are followed by an invited "perspective" authored by experts on that theme. In addition to allowing for syn- ergy and to providing alternative explanations for the results, an objective of the "perspective" is to provide guidance for future research on issues related to that common theme.
767
This content downloaded from 188.72.127.42 on Tue, 10 Jun 2014 00:34:32 AMAll use subject to JSTOR Terms and Conditions
1. S. David Young Interest Group Politics and the Licensing of Public Accountants
2. William R. Baber, Patricia M. Fairfield, and James A. Haggard
The Effect of Concern about Reported Income on Discretionary Spending Decisions: The Case of Research and Development
3. Paul A. Griffin and Samoa J. R. Wallach Latin American Lending by Major U.S. Banks: The Effects of Disclosures about Nonaccrual Loans and Loan Loss Provisions
4. John A. Elliott, J. Douglas Hanna, and Wayne H. Shaw The Evaluation by the Financial Markets of Changes in Bank Loan Loss Reserve Levels
5. Maurice Moonitz MEMORIAL, William Joseph Vatter (1905-1990)
808
This content downloaded from 188.72.127.42 on Tue, 10 Jun 2014 00:34:32 AMAll use subject to JSTOR Terms and Conditions
