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This study examines the incentives motivating listed companies in Malaysia to voluntarily choose the Direct Method over the Indirect Method in reporting cash flow from operating (CFO) activities in their 1997 annual financial reports following the adoption of the IAS 7 (Revised) Statement of Cash Flows (SCF), which was used prior to the current standard MASB No. 5 Cash Flow Statement promulgated by the Malaysian Accounting Standards Board (MASB) in 1999. Adopting the signalling perspective, the general hypothesis of this study is that the choice of the Direct Method over the Indirect Method in reporting CFO activities is to maximize a firm’s value via engagement in quality signalling to the market. Specifically, it is hypothesised that such decision is influenced by the firm’s level of managerial efficiency, financial risk, size, its auditor, and industry membership. The sample consists of 231 firms listed on the Kuala Lumpur Stock Exchange; 32 firms in the treatment group (Direct Method) and 199 firms in the control group (Indirect Method). Based on the results from the univariate and multivariate analyses, we found all variables to be in the hypothesised directions. However, we infer that the decision to choose the Direct Method for reporting CFO activities in SCF is significantly influenced by the firm’s level of managerial efficiency, size, and its auditor. Thus, there is support for the general hypothesis of maximization of the value of the firm via quality signalling. The authors gratefully appreciate the helpful comments of the discussant and workshop participants at the 11th Asian‐Pacific Conference on International Accounting

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

The low Mach number approximation of the Navier—Stokes equations is of similar nature to the equations for incompressible flow. A major difference, however, is the appearance of a space‐ and time‐varying density that introduces a supplementary non‐linearity. In order to solve these equations with spectral space discretization, an iterative solution method has been constructed and successfully applied in former work to two‐dimensional natural convection and isobaric combustion with one direction of periodicity. For the extension to other geometries efficiency is an important point, and it is therefore desirable to devise a direct method which would have, in the best case, the same stability properties as the iterative method. The present paper discusses in a systematic way different approaches to this aim. It turns out that direct methods avoiding the diffusive time step limit are possible, indeed. Although we focus for discussion and numerical investigation on natural convection flows, the results carry over for other problems such as variable viscosity flows, isobaric combustion, or non‐homogeneous flows.

The operating activities section of the statement of cash flows presents a long-standing teaching challenge for accounting educators. The direct method is easy to understand yet difficult to prepare; the indirect method is harder to understand but easier to prepare. Many instructors address the two methods separately, requiring students to learn two different ways for preparing the operating section of a statement of cash flows. Because of this focus on the mechanics of preparation, the result is often an emphasis on how to prepare the cash flow statement rather than on the essential information the statement provides. In this paper, the authors note that both direct and indirect methods begin at the same point, that is, the income statement, and end at the same point, that is, cash flow from operations. Then, the authors describe one process by which the income statement and the balance sheet can be analyzed to provide the information required to present operating cash flow using either the direct or the indirect method. Using this approach allows students to apply one intuitive process for computing cash flow from operations rather than memorizing two different sets of rules for direct and indirect methods.

The paper compares multi-period forecasting performances by direct and iterated method using Bayesian vector autoregressive (VAR) models.

The paper adopts Bayesian VAR models with three different priors – independent Normal-Wishart prior, the Minnesota prior and the stochastic search variable selection (SSVS). Monte Carlo simulations are conducted to compare forecasting performances. An empirical study using US macroeconomic data are shown as an illustration.

In theory direct forecasts are more efficient asymptotically and more robust to model misspecification than iterated forecasts, and iterated forecasts tend to bias but more efficient if the one-period ahead model is correctly specified. From the results of the Monte Carlo simulations, iterated forecasts tend to outperform direct forecasts, particularly with longer lag model and with longer forecast horizons. Implementing SSVS prior generally improves forecasting performance over unrestricted VAR model for either nonstationary or stationary data.

The paper finds that iterated forecasts using model with the SSVS prior generally best outperform, suggesting that the SSVS restrictions on insignificant parameters alleviates over-parameterized problem of VAR in one-step ahead forecast and thus offers an appreciable improvement in forecast performance of iterated forecasts.

This chapter advocates a teaching approach for the statement of cash flows (SCF) that includes introduction of the SCF early in the curriculum using the accounting equation format, which helps students visualize the cash and accrual activities. We then adapt this accounting equation format to a worksheet model that can be used later in the curriculum with more complex data sets. This approach provides several advantages: (1) it maintains a consistent, accounting equation approach throughout; (2) it can be used for both the direct and the indirect report format; (3) when used with Excel, the format is easier to explain, easier to use, and less prone to mechanical error than the worksheet approaches used in most textbooks; and (4) it is used by many professional accountants.

An updated version of the original (1985) text, the book covers all aspects of marketing and selling bank services: the role of marketing; behaviour of customers; intelligence, planning and organisation; product decisions; promotion decisions; place decisions; price decisions; achieving sales. Application questions help to focus the readers' minds on key issues affecting practice.

The purpose of this paper is to investigate the range sensitivity of the analytic hierarchy process (AHP) and evaluate the effectiveness of using a bottom‐up approach to mitigate the possible range insensitivity bias in the AHP.

An experiment was conducted to test the normative range‐sensitivity of four different methods: the AHP with bottom‐up evaluation; direct ratio weights; swing weights; and trade‐off weights. Also, the significance of the range‐sensitivity effects and the differences among weighting approaches were rigorously tested using various statistical models.

Results show that the range sensitivities of AHP and direct ratio weights are significantly less than the range sensitivities of swing weights and tradeoff weights, suggesting that the bottom‐up evaluation approach might not be a feasible solution for the range‐insensitivity problem. This finding is consistent with the value‐comparison hypothesis proposed in an earlier study, and is partially supported by the theory of the multi‐dimensionality of attribute importance.

It is concluded that treating the attribute weights and performance scoring scales separately in the AHP or other multi‐attribute decision analysis models might lead to an arbitrary final ranking of alternatives. Therefore, it may be necessary to incorporate better elicitation procedures into the AHP models to ensure that attribute weights properly reflect the range or scale of measurement.

This study provides new evidence and issues words of warning of the range‐sensitivity effects in the multi‐attribute decision analysis.

This paper aims to propose a novel direct method for indefinite algebraic linear systems. It is well adapted for sparse linear systems, such as those of two-dimensional (2-D) finite elements problems, especially for coupled systems.

The proposed method is developed on an example of an indefinite symmetric matrix. The algorithm of the method is given next, and a comparison between the numbers of operations required by the method and the Cholesky method is also given. Finally, an application on a magnetostatic problem for classical methods (Gauss and Cholesky) shows the relative efficiency of the proposed method.

The proposed method can be used advantageously for 2-D finite elements in stepping methods without using a block decomposition of matrices.

This method is advantageous for direct linear solving for 2-D problems, but it is not recommended at this time for three-dimensional problems.

The proposed method is the first direct solver for algebraic linear systems proposed since more than a half century. It is not limited for symmetric positive systems such as many of direct and iterative methods.

Investigates the efficiency of hybrid solution methods when incorporated into large‐scale topology and shape optimization problems and to demonstrate their influence on the overall performance of the optimization algorithms. Implements three innovative solution methods based on the preconditioned conjugate gradient (PCG) and Lanczos algorithms. The first method is a PCG algorithm with a preconditioner resulted from a complete or an incomplete Cholesky factorization, the second is a PCG algorithm in which a truncated Neumann series expansion is used as preconditioner, and the third is a preconditioned Lanczos algorithm properly modified to treat multiple right‐hand sides. The numerical tests presented demonstrate the computational advantages of the proposed methods which become more pronounced in large‐scale and/or computationally intensive optimization problems.