Academy of Accounting and Financial Studies Journal, Volume 1, Number 1, 1997

CONTENTS

LETTER FROM THE EDITORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

AN EXPERIMENTAL TEST OF THE RELATION BETWEEN AUDIT

STRUCTURE AND AUDIT EFFECTIVENESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Marla A. Myers, University of Idaho

THE ASSOCIATION OF CASH FLOW COMPONENTS WITH

CORPORATE BOND RETURNS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

David O'Bryan, Pittsburg State University

Tanweer Hassan, Roosevelt University

A TEST OF INVESTOR COGNIZANCE IN THE MARKET'S REACTION

TO DIVIDEND ANNOUNCEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Hoje Jo, Santa Clara University

Eun Kang, California State University, San Marcos

FINANCIAL HEALTH OR INSOLVENCY? WATCH TRENDS AND

INTERACTIONS IN CASH FLOWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Benjamin P. Foster, University of Louisville

Terry J. Ward, Middle Tennessee State University

A VESTED PRESENT VALUE APPROACH TO VALUING

EMPLOYEE STOCK OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Dale Martin, Wake Forest University

Jonathan Duchac, Wake Forest University

PRAGMATIC APPLICATIONS OF STOCHASTIC OSCILLATORS FOR

INDIVIDUAL STOCK SELECTIONS:

SOME EMPIRICAL EVIDENCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Carroll D. Aby, Jr., Northwestern State University

Marcelline R. Fusilier, Northwestern State University

AN ALTERNATIVE VERTICAL APPROACH

TO ANALYZING OVERHEAD VARIANCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Philip Little, Western Carolina University

Lynn K. Saubert, Radford University

EXECUTIVE COMPENSATION PLANS: EMPIRICAL

ANALYSIS OF THE TAX EXPLANATION OF

COMPENSATION PLAN CHOICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

David H. Culpepper, Millsaps College

BREAK-EVEN AND COST-VOLUME-REVENUE ANALYSIS

FOR NONPROFIT ORGANIZATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Jae K. Shim, California State University Long Beach