Theoretical and Interpretation Challenges to Using the Author Affiliation Index Method to Rank Journals

We formally review the Author Affiliation Index (AAI) method as originally conceived by David Harless and Robert J. Reilly from the Economics Department at the Virginia Commonwealth University School of Business and as subsequently developed and interpreted by Gorman and Kanet in their 2005 article. Through this formal review, we first highlight and discuss two important informational inputs that can impact the stability of the AAI scores for journals in any given set of to‐be‐evaluated journals. We then identify and challenge interpretations related to these scores (one theoretical, one statistical) offered by Gorman and Kanet that result in misleading conclusions about journal quality and that may potentially motivate inappropriate editorial behavior. For important professional decisions of hiring, performance evaluation, promotion, and tenure, we conclude by cautioning against sole reliance on the AAI method for ranking journals and against exclusive interpretation of the score computed via the AAI method as an indicator of journal quality.     

Concepts,Theory, and Techniques INFLATION,MAINTENANCE OF CAPITAL,AND THE IRR MODEL OF CAPITAL BUDGETING*

Businesses operating under inflationary conditions need capital-budgeting models that help them judge the adequacy of returns on their investments and also allow them to keep capital intact by considering the erosive effects of inflation. The model proposed in this paper computes a modified internal rate of return (IRR); if cash inflows from a project are divided between earnings and recovery of capital, total recovery equals that amount which the capital-budgeting concept adopted by the business specifies (such as the original investment in constant dollars or its replacement cost). Under this model, a project should be accepted only if this computed rate equals or exceeds a hurdle rate that consists of the inflation-free rate of return plus the effect of inflation on such a return. Other modifications to the IRR model suggested in the literature do not completely satisfy the objective of capital budgeting under inflationary conditions.