The use of accruals to manage reported earnings: theory and evidence

This paper develops a model in which firm managers maximize their own compensation by using accruals to manage reported earnings. The results of the model suggest that the form of the managerial compensation function and managerial time preferences may have an important influence on the relationship between accruals and latent earnings. Among the possible relationships suggested by the model are strategies we call Smooth Income, Occasional Big Bath, Live for Today, and Maximize Variability, each of which suggests a different reporting strategy pursued by managers. Most empirical tests of accruals are inconsistent with this and other theoretical models because they include a single earnings variable in a linear regression analysis. Instead, we document the reporting of accruals by two firms, Sunbeam and Citicorp, that is consistent with the “Live for Today” and “Occasional Big Bath” strategies.Investments

TRAP CROP RADISH: A SUSTAINABLE ALTERNATIVE FOR NEMATICIDE IN SUGAR BEETS

Chemical treatment of nematodes in sugar beets can be very costly ($190 per acre), and hazardous, representing significant environmental risks to air, water and human health. Substituting trap crop radish for chemicals, represents a win-win case of sustainable pest control, yielding environmental benefits, higher profit and reduced risk.Crop Production/Industries,

ECONOMICS OF VARIABLE RATE NEMATICIDE FOR SUGAR BEETS

The benefit of applying fumigant for control of the sugar beet nematode on a variable versus uniform rate basis is examined. Compared to fumigating an entire filed at a constant full-label rate, varialbe rate application provides a savings ranging from $31/ac (heavily infested field) to$69/ac (lightly infested field).Crop Production/Industries,

Michigan's Continuing Abolition of the Death Penalty and the Conceptual Components of Symbolic Legislation

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/68316/2/10.1177_096466399300200304.pd

Longitudinal white-matter abnormalities in sports-related concussion: A diffusion MRI study

Objective To study longitudinal recovery trajectories of white matter after sports-related concussion (SRC) by performing diffusion tensor imaging (DTI) on collegiate athletes who sustained SRC. Methods Collegiate athletes (n = 219, 82 concussed athletes, 68 contact-sport controls, and 69 non–contact-sport controls) were included from the Concussion Assessment, Research and Education Consortium. The participants completed clinical assessments and DTI at 4 time points: 24 to 48 hours after injury, asymptomatic state, 7 days after return-to-play, and 6 months after injury. Tract-based spatial statistics was used to investigate group differences in DTI metrics and to identify white-matter areas with persistent abnormalities. Generalized linear mixed models were used to study longitudinal changes and associations between outcome measures and DTI metrics. Cox proportional hazards model was used to study effects of white-matter abnormalities on recovery time. Results In the white matter of concussed athletes, DTI-derived mean diffusivity was significantly higher than in the controls at 24 to 48 hours after injury and beyond the point when the concussed athletes became asymptomatic. While the extent of affected white matter decreased over time, part of the corpus callosum had persistent group differences across all the time points. Furthermore, greater elevation of mean diffusivity at acute concussion was associated with worse clinical outcome measures (i.e., Brief Symptom Inventory scores and symptom severity scores) and prolonged recovery time. No significant differences in DTI metrics were observed between the contact-sport and non–contact-sport controls. Conclusions Changes in white matter were evident after SRC at 6 months after injury but were not observed in contact-sport exposure. Furthermore, the persistent white-matter abnormalities were associated with clinical outcomes and delayed recovery tim

Bank loan-loss accounting: a review of theoretical and empirical evidence

The philosophy underlying a bank's accounting for loan losses might have a material effect on the net income the firm reports to investors, which is a concern for securities regulators. A bank's loan-loss accounting philosophy might also significantly affect its ability to absorb unexpected future losses, which is a concern for bank supervisors. For example, a bank that follows a conservative loan-loss philosophy (maintains a higher loan-loss allowance) may be better able to absorb unexpected losses but also may have more freedom to manage reported earnings. This article focuses on the extent to which securities regulators and bank supervisors should be concerned about banks' accounting. ; The authors' conclusion is that neither the bank supervisors' nor the securities regulators' concern is as serious as it may seem at first glance. Using currently available data, investors can and do form estimates of the "economically true" amount of banks' loan-loss allowances, provisions, net income, and equity capital. Strict adherence to Securities and Exchange Commission guidelines may improve the quality of the data, but the guidelines may not eliminate the benefit or reduce the cost of investors' making their own estimates. However, bank supervisors have the authority to require banks to hold additional equity capital if the bank's loan-loss allowance is judged inadequate to absorb future losses.Accounting ; Bank loans ; Bank management

Twinning in Cattle

The economic benefits of increasing reproductive rate indicate a need to determine the feasibility of increasing the frequency of twinning in cattle, either by selection or by an artificial method. Rate of reproduction has a major impact on life cycle costs of production for different meat animal species and, thus, upon the production resources for which different species are competitive. For example, the average beef cow is capable of producing about .7 of her body weight per year in progeny market weight, but the comparable multiple is 8 in pigs and more than 70 in meat chickens. The objectives of this project focus on gaining the understanding needed to develop a technology for increasing the frequency of twinning in cattle. A comprehensive physiological examination of cows that produce a high frequency of twins may establish the biological and/or environmental requirements for multiple births in cattle and the feasibility of increasing twinning frequency by selection, artificial induction, or by both. This experiment is being conducted to provide understanding relating to these considerations, Specific objectives of the experiment are: (1) determine the effectiveness of selection for multiple births in cattle; (2) develop and evaluate selection criteria for multiple births in cattle; (3) accumulate data that will contribute to an economic assessment of multiple births in cattle for varying resource situations; (4) establish husbandry requirements for herds of cattle that have a high twinning frequency; (5) determine the relative importance of multiple ovulation and embryo survival in contributing to multiple births in cattle in both spring and fall breeding; and (6) determine the usefulness of cows with high twinning frequency as :models: to gain understanding of biological factors that relate to embryo survival for both single and multiple births in cattle