Experimental study of implications of SFAS 131: The effects of the new standard on the informativeness of segment reporting

This paper analyzes whether the new business segment reporting disclosure rules, SFAS 131, will actually provide capital market participants with more predictive ability than the previous rules. For this we conduct three experiments. Two experiments with advanced accounting students as subjects, where the experiments differ in the firm the subjects analyze, and the third with professional financial analysts. In each experiment we provide one group of subjects with accounting reports based on the new standard (New Rules Group, NRG), and another group with reports based on the old standard (Old Rules Group, ORG). We ask both groups to forecast several accounting and market values of a firm. We then compare the performance predictions and analyses of the two groups. Most of the forecasts of the NRG are neither significantly different from those of the ORG, nor significantly more accurate. Subjects also report the variables that they consider important in their analysis. 25% of the NRG students in Experiment I mention the segment data as being central in their decisions and 33% say they used segment or sector data. Among the analysts in Experiment II the corresponding percentages are 0% and 60%, respectively. Also in experiment III, where the subjects rank the top 4 variables they use in their predictions according to importance, segment repots receive a mediocre rank. It therefore appears that the reports according to the new rules, whereas noticeable by the subjects, do not have a major positive impact on their responses. The subjects also exhibit a considerable degree of overconfidence. --segment reporting,FASB 131,experimental economics,overconfidence

Experimental study of implications of SFAS 131: The effects of the new standard on the informativeness of segment reporting

This paper analyzes whether the new business segment reporting disclosure rules, SFAS 131, will actually provide capital market participants with more predictive ability than the previous rules. For this we conduct three experiments. Two experiments with advanced accounting students as subjects, where the experiments differ in the firm the subjects analyze, and the third with professional financial analysts. In each experiment we provide one group of subjects with accounting reports based on the new standard (New Rules Group, NRG), and another group with reports based on the old standard (Old Rules Group, ORG). We ask both groups to forecast several accounting and market values of a firm. We then compare the performance predictions and analyses of the two groups. Most of the forecasts of the NRG are neither significantly different from those of the ORG, nor significantly more accurate. Subjects also report the variables that they consider important in their analysis. 25% of the NRG students in Experiment I mention the segment data as being central in their decisions and 33% say they used segment or sector data. Among the analysts in Experiment II the corresponding percentages are 0% and 60%, respectively. Also in experiment III, where the subjects rank the top 4 variables they use in their predictions according to importance, segment repots receive a mediocre rank. It therefore appears that the reports according to the new rules, whereas noticeable by the subjects, do not have a major positive impact on their responses. The subjects also exhibit a considerable degree of overconfidence

Angiographic evidence for reduced graft patency due to competitive flow in composite arterial T-grafts

ObjectiveComposite arterial grafting causes splitting of internal thoracic artery flow to various myocardial regions. The amount of flow supplying each region depends on the severity of coronary stenosis. Competitive flow in the native coronary artery can cause occlusion or severe narrowing of the internal thoracic artery supplying this coronary vessel.MethodsTwo hundred three consecutive postoperative coronary angiographies of 163 patients who underwent bilateral internal thoracic artery grafting using the composite-T-graft technique were analyzed. Angiographies were done in symptomatic patients or in patients with positive thalium scan between 2 and 102 months after surgery and were compared with preoperative angiograms.ResultsIn 123 patients, both internal thoracic arteries were patent. The remaining 40 control patients had at least 1 nonfunctioning internal thoracic artery. A lower stenosis rate in the left anterior and circumflex arteries was associated with higher occlusion rate of the left internal thoracic artery (P < .005) and the right internal thoracic artery (P < .005), respectively. In 19 angiograms of 18 patients, graft failure could be related to competitive flow. This included 7 patients with disease of the left main artery and a preoperative stenosis degree ranging between 50% and 80%, 8 patients with moderate stenosis (70% or less) of the circumflex artery, and 3 with moderate stenosis of the left anterior descending artery. Three of the patients with disease of the left main artery, 2 of the patients with competitive flow in the circumflex artery, and all patients in the subgroup with left anterior descending arterial disease underwent percutaneous or surgical reintervention.ConclusionThe composite T-graft technique of bilateral internal thoracic artery grafting should be reserved for patients with severe (70% or more) left anterior descending and circumflex arterial stenosis

Correlation Differences in Heartbeat Fluctuations During Rest and Exercise

We study the heartbeat activity of healthy individuals at rest and during exercise. We focus on correlation properties of the intervals formed by successive peaks in the pulse wave and find significant scaling differences between rest and exercise. For exercise the interval series is anticorrelated at short time scales and correlated at intermediate time scales, while for rest we observe the opposite crossover pattern -- from strong correlations in the short-time regime to weaker correlations at larger scales. We suggest a physiologically motivated stochastic scenario to explain the scaling differences between rest and exercise and the observed crossover patterns.Comment: 4 pages, 4 figure

Differential effect of humoral endorphin on the binding of opiate agonists and antagonists

Humoral (H) endorphin, a novel endogenous factor with opiate-like activity was further characterized using various radioreceptor assays. H-Endorphin displaced both labelled opiates (morphine, ethylketazocine) and opioid peptides (leucine-enkephalin) from their specific binding sites in rat brain membranes. The effect of sodium ions on H-endorphin indicates its agonistic nature which is in agreement with previous pharmacological experiments. However, H-endorphin potentiated the binding of the opiate antagonist naloxone to brain membranes. This peculiar effect of H-endorphin on naloxone, together with the non-conventional interactions observed in various pharmacological assays, clearly distinguishes H-endorphin from other opioid ligands. A multisite model of the opiate receptor is presented. This model, which is compatible with the well documented evidence for receptors heterogeneity also explains non-conventional interactions between various opioid ligands

On the opioid nature of phencyclidine and its 3-hydroxy derivative

Phencyclidine (PCP) and its 3-hydroxy derivative (PCP-3-OH) caused a dose-dependent, naloxone reversible inhibition of the response of the guinea pig ileum to electrical stimulation. Unlike PCP, PCP-3-OH exerted an opioid antagonistic effect in the mouse vas deferens bioassay. Whereas both compounds displayed a high affinity in displacing [ 3H]SKF-10047 binding to rat brain membranes, PCP-3-OH displayed a high affinity to [ 3H]morphine receptors also. The mediation of σ- and μ-receptors in the opioid effects of these drugs is discussed

Is there a role for a random measurement of 24-hour urine calcium excretion in the determination of calcium supplementation in osteoporotic postmenopausal women using alendronate?

Abstract The article addresses the clinical query whether a casual determination of 24-hour urinary calcium excretion by the end of first-year treatment with alendronate in osteoporotic postmenopausal women correlates with the change in bone mineral density achieved during that year. The study included 2 arms: a prospective arm (n = 31) with women on long-term hormone replacement therapy were followed for 1 year after addition of alendronate (10 mg/daily); a retrospective arm (n = 33) with women using alendronate for 1 year. Bone mineral density and urine deoxypyridinoline were measured at baseline and 1 year, 24-hour urine calcium was obtained at 1 year. All patients used supplemental calcium, but the exact intake values were not determined. The results demonstrated no correlation between the annual increase in both spine and femur bone density and urinary calcium. Asssuming that urinary calcium correlates with calcium intake and absorption, a casual measurement of urinary calcium excretion seems irrelevant for the titration of optimal calcium supplementation in this clinical setup

The LIFO/FIFO Choice as a Signal of Future Costs

We explain the puzzling empirical evidence on the investory accounting choice through a management signaling argument. We assert that firms with lower nominal production costs than other firms have relatively less to gain from the tax advantages assocaited with LIFO adoption. For these firms, future nominal production costs are lower due to increased efficiency or technological improvements. Because of asymmetric information about future costs, and the moral hazard problem of direct communication, the managers of the more efficient firms are able to credibly communicate their production superiority by using the FIFO accounting method.We show in this paper that, if firms can choose the fraction of their inventory which is allocated to FIFO and LIFO, then a separating equillibrium exists in which firms with lower production costs signal their greater efficiency by allocating a higher fraction of their invetory to FIFO