Monitoring Accounts Payables

In creating shareholder value, one objective of management is to increase the speed of cash inflows and reduce the speed of cash outflows. To accomplish this task, management must understand the relationships that cause accounts receivable and accounts payable to change. The paper expands a receivable monitoring model by Gentry and De La Garza to incorporate the causes of changes in payables. Several examples are developed to show the operation of the model. The three primary contributions of the paper are (a) developing algorithms that measure the causes of changes in payables, plus an interpretation for each set of conditions; (b) showing that a present value approach to monitoring payables is superior to a recommended accounting approach based on variance analysis; (c) finally, presenting an approach for ranking the performance of payable and receivable strategies.     

On information release and the January effect: Accounting-information hypothesis

Since most firms select December fiscal year-ends, theJanuary effect is a fiscal year-end accounting effect, according to the accounting-information hypothesis. This hypothesis attributes the unusually large stock returns in January to higher risk, caused by uncertainty about the impending announcement of firm performance. The empirical evidence does not support the hypothesis. Small firms with non-December fiscal year-ends fail to display a fiscal year-end effect. Yet all small firms, regardless of their fiscal year-end month, exhibit large January returns.     

Een onderzoek naar de invloed van monetaire factoren op het reële groeiproces in enkele traditionele theorieën van economische groei (III)

Summary This is the third of three successive papers on the problem of to what extent monetary phenomena influence the real variables in a process of economic growth. In the first paper the conditions under which money is neutral was examined. The second was devoted to the impact of money in a neo-classical growth model. In the present paper the real neo-keynesian growth model of Harrod is taken as a starting-point. This is a special case of the neo-classical model, for the introduction of a constant rate of interest in a neoclassical production structure yields a constant capital-labor ratio as a result. According to the Harrod model, capital scarcity or capital abundance will generally prevail. Stable growth is a mere accident. Subsequently, the assumption of a constant rate of interest is relaxed. The rate is now assumed to be dependent on the national product and the money supply. This makes the model more flexible. Control of the growth rate of the money supply is then an instrument in the hands of the monetary authorities for the purpose of preventing situations of capital scarcity or abundance. In the case of capital scarcity, the growth rate of the money supply has to be raised. Paradoxically enough, the result of this will be that the rate of interest rises. In a situation of capital abundance the opposite is true. A steady and stable growth path is possible, because the monetary authorities are in a position to let the rate of interest take a value at which full employment prevails.      

Does Firm Size Comfound the Relationship Between Corporate Social Performance and Firm Financial Performance?

There has been some theoretical and empirical debate that the positive relationship between corporate social performance (CSP) and firm financial performance (FFP) is spurious and in fact caused by a third factor, namely large firm size. This study examines this question by integrating three meta-analyses of more than two decades of research on (1) CSP and FFP, (2) firm size and CSP, and (3) firm size and FFP into one path-analytic model. The present study does not confirm size as a third factor which would confound the relationship between CSP and FFP. That is, even if firm size is controlled for across studies (comprising, on average, over 15 000 observations), CSP and FFP remain positively correlated, showing a "true-score" corrected path coefficient p of 0.37.