摘要:

ABSTRACTThis paper demonstrates that shareholder limited liability imposes a restriction on corporate borrowing and that failure to incorporate this restriction into the analysis yields the “reductio ad absurdum” argument against mean‐variance models of optimal capital structure. With corporate income taxes and costless bankruptcy, the firm's value is a monotonically increasing function of debt as long as the amount of debt does not exceed the upper limit imposed by shareholder limited liability. As a result, the introduction of costly bankruptcy into the mean‐variance framework is ju

ISSN:0011-7315    

DOI:10.1111/j.1540-5915.1984.tb01192.x

出版商:Blackwell Publishing Ltd    

年代:1984

数据来源: WILEY

摘要:

ABSTRACTThe problems of determining valid shadow prices and of performing a valid sensitivity analysis for managerial purposes are considered. For primal degenerate optima, earlier results on finding shadow prices are used to propose a clear and efficient method for finding valid cost‐coefficient ranges. An example is used to demonstrate how managerial information can be obtained at degenerate optim

ISSN:0011-7315    

DOI:10.1111/j.1540-5915.1984.tb01193.x

出版商:Blackwell Publishing Ltd    

年代:1984

数据来源: WILEY

摘要:

ABSTRACTManagement goals in distribution inventories are often expressed in terms of the maximum percentage of aggregate sales that should be back ordered. This paper compares several strategies for allocating total inventory investment to each item stocked in order to meet such goals. Computational results are given from a wholesale distribution inventory. The results show that multi‐item strategies (which consider the interactions between items) require substantially less investment to meet management goals than strategies that treat each line item independently. All models in this research are approximations based on the assumptions commonly used in practic

ISSN:0011-7315    

DOI:10.1111/j.1540-5915.1984.tb01194.x

出版商:Blackwell Publishing Ltd    

年代:1984

数据来源: WILEY

摘要:

ABSTRACTInformation economics models evaluate the value of information under the assumption that decision makers wish to maximize their expected payoff. This assumption has been criticized for not being realistic enough since decision makers usually consider more than one business objective and might be satisficers rather than optimizers.This paper attempts to apply an information economics model to decision situations where two business performance criteria, expected payoff and risk, are considered. In order to overcome the difficulty of unknown trade‐off between the two criteria, one criterion is used as an objective to be optimized, while the other is set as a constraint. This may be interpreted as a combination of optimizing and satisficing approaches. It is shown how an information system can be evaluated in terms of both expected payoff and risk. The model suggests the trade‐off between the two criteria as an additional trait of an information system. In the last part of the paper, a numerical example illustrates how a comparative evaluation of information structures is performed when risk minimization and expected payoff maximization are concurrently used as business performance crite

ISSN:0011-7315    

DOI:10.1111/j.1540-5915.1984.tb01195.x

出版商:Blackwell Publishing Ltd    

年代:1984

数据来源: WILEY

摘要:

ABSTRACTRonen and Livingstone [42] have proposed that expectancy theory can provide a unifying framework for accounting research aimed at the motivational impact of budgets on managers. Unfortunately, researchers attempting to use this approach have employed an inappropriate across‐persons methodology. This paper uses the decision modeling approach we recently developed [48]to provide a within‐persons examination of Vroom's force model in a budget setting. An examination of two hypotheses questions the belief expressed in the budget literature to the effect that the use of currently attainable cost standards results in a cost budget with unique motivating characteristics. Strengths of this research are the use of the within‐persons approach and the use of an innovative measure of motivational

ISSN:0011-7315    

DOI:10.1111/j.1540-5915.1984.tb01196.x

出版商:Blackwell Publishing Ltd    

年代:1984

数据来源: WILEY

摘要:

ABSTRACTThe desirability of a merger/acquisition alternative depends in part on the perceptions of the decision maker. What sources of information are “useful” to the decision maker&Does the set of useful information remain constant for all decision makers; if not, do individuals using similar information sets have similar information processing characteristics? Do these sets vary as feedback is obtained during the decision process? To answer these questions, graduate students participated in a modified Delphi experiment, and the resulting data were analyzed by the two‐way aligned‐ranks nonparametric test. These test results affirm that in a merger/acquisition scenario, decision makers with different cognitive styles prefer different sets of information and these sets vary dynamically as feedback is incorporated in the decision‐making process. Furthermore, information that contains worker and community welfare considerations is identified as “useful” five times more frequently by decision makers with a “feeling” cognitive style than those with a

ISSN:0011-7315    

DOI:10.1111/j.1540-5915.1984.tb01197.x

出版商:Blackwell Publishing Ltd    

年代:1984

数据来源: WILEY

摘要:

ABSTRACTIn a recent issue of this journal, Watkins [13] presented an approach for discovery of decision‐maker perceptions of the complexity (dimensionality) of information items that might be supplied by a decision support system. Through use of multidimensional scaling and cluster analysis, relatively homogeneous groups of decision makers, sharing common perceptions of various information items, were formed. This prior research was referred to as a first step in suggesting that information reports could be tailored to groups of decision makers classified on the basis of common perceptions of information. The current research extends the prior study by evaluating decision makerpreferencesfor information in a variety of decision‐making scenarios in relation to the previously identified perceptions of the information. Based on the results of the study, conclusions are made which suggest that the tailoring of information to groups of decision makers should be based onbothperceptions and preferences for information. Even so, it is demonstrated that the decision tasks have an impact on the preferences for information which may affect the attempt to tailor information to groups of decision mak

ISSN:0011-7315    

DOI:10.1111/j.1540-5915.1984.tb01198.x

出版商:Blackwell Publishing Ltd    

年代:1984

数据来源: WILEY

摘要:

ABSTRACTInformation analysts gather and interpret information regarding organizational decision making. One source of information is the physical environment of the decision maker. A system for structured observation of the environment (STROBE) was developed and was used to gather information on administrators and medical directors of regional blood service organizations in the United States and Canada. Our results suggest that the reliability of STROBE is high and validity is acceptable, suggesting that STROBE may be useful in gathering data usually obtained through interviewing or observing behavior of decision makers.

ISSN:0011-7315    

DOI:10.1111/j.1540-5915.1984.tb01199.x

出版商:Blackwell Publishing Ltd    

年代:1984

数据来源: WILEY

摘要:

ABSTRACTDocuments provided newly hired faculty members were requested from the major statesupported university in each of the fifty states. Those documents revealed two basic types of retirement plans: (1) state‐controlled, defined‐benefit plans in which retirement benefits are a function of a formula rather than the contributions by the employee and employer, if any; and (2) third‐party, defined‐contribution, input‐based plans in which the funds are controlled by a third party and the benefits depend upon the amount of contributions and the return earned by them. The analysis focused upon the defined‐benefit formula plans and a standard was developed to facilitate analysis. The simulations undertaken reveal significant, decision‐relevant biases—especially against faculty who elect to change employers as infrequently as once every ten years when different pension plans are involved! The risks attendant to each type of plan and possible career strategie

ISSN:0011-7315    

DOI:10.1111/j.1540-5915.1984.tb01200.x

出版商:Blackwell Publishing Ltd    

年代:1984

数据来源: WILEY

摘要:

ABSTRACTAccording to the constant growth model and perceived finance theory, the cost of new external equity exceeds the cost of retained earnings due to flotation costs and underpricing. Carlson and Dietz [1] have recently argued that the constant growth model is operationally inadequate whenever the net proceeds from the issuance of a new share differ from book value. Specifically, they contend that the cost of new external equity is less than the cost of retained earnings whenever the net proceeds from a new share exceed book value. We show that these conclusions stem from an error in interpretation and therefore that the constant growth model is valid regardless of the relationship between market prices and book value.

ISSN:0011-7315    

DOI:10.1111/j.1540-5915.1984.tb01201.x

出版商:Blackwell Publishing Ltd    

年代:1984

数据来源: WILEY