o Time : December 08, Friday 3:00 ~ 5:00 p.m.

o Venue : 9705(The 7th floor seminar room)


Aggregation, uncertainty, and discriminant analysis


Abstract


An important role of accountants is to provide the financial summary for the economic activities of companies over the period. The preparation of financial statements is nothing but a linear aggregation process of accounting information. The numbers summarized in financial statements balance (i.e. aggregated financial information) computed from the aggregation process of a myriad of day-to-day transactions (i.e. disaggregated financial information) of companies. The consumers of accounting information utilize aggregated or disaggregated accounting information in their decision making. Discriminant analysis is a pervasive field of which accounting information is used to separate distinct sets of entities. This paper examines the effects of aggregation by examining the impacts of aggregation on the discriminating between two entities. In particular, this paper examines the case such that on average managers show equal mean matrix and unequal variance matrices in their transactions.