This paper contains evidence of a significant negative stock price reaction to media disclosures of ‘subject to’ qualified audit opinions. Disclosures of qualifications in the financial news media (the Wall Street Journal and the Broad Tape) are rare relative to the frequency of audit qualifications. Other studies do not detect an impact of qualified opinions on stock prices. None of the explanations for the difference in the results between this study and prior studies is consistent with the data. We are unable to draw strong inferences because we cannot identify the selection process that produces the sample of media disclosures.

This study is concerned with the impact of changes in economic conditions on the family. "Three issues are considered in this paper. First, the reasons why the family is not fading away as an economic entity are discussed. The argument of this paper is that, despite the declines in various economic functions of the family and the increases in divorces and in other failures, the survival capacity of the family is both strong and robust." Second, the author contends that the economic approach should be extended to deal with the effects of the life-span revolution, shifts in prices and incomes, and the ability of the family to cope with these changes. Third, the hypothesis is put forward that intergenerational transfers are less important than increases over time in real per capita incomes and changes in income composition, its permanent and temporary components, and the sources of income. The geographical focus is worldwide.

Abstract. This study examines the association between an index of compliance with the fund model and bond risk measures. Several additional factors were posited to be associated with bond risk and to be correlated with the fund index. These variables were included in the analysis to control for possible spurious results. The results were consistent with the hypothesis that the fund accounting model provides information associated with creditor decisions. The fund index was negatively correlated with systematic and total bond risk after controlling for other factors. The index contributed marginally in explaining the variation in measures of risk for a sample of 214 cities. The results were insensitive to several alternative models that were examined but that are not reported in detail in the study. Résumé. Cette étude porte sur le lien entre un indice de conformité au modèle de comptabilité par fonds et les mesures de risque obligataire. Plusieurs facteurs étaient supposés être reliés au risque obligataire et correlés avec l'indice de fonds. Ces variables ont été incorporées à l'analyse afin de contrôler la possibilité de résultats trompeurs. Les résultats ont révélé une cohérence avec l'hypothèse voulant que le modèle de comptabilité par fonds fournisse de l'information reliée aux décisions des créanciers. L'indice de fonds était correlé négativement au risque obligataire, systématique et total, en contrôlant l'effet des autres variables. L'indice n'a pu expliquer*** la variation des mesures de risque pour un échantillon de deux cents quatorze municipalités. Les résultats n'ont pas été affectés par l'utilisation de diverses variantes de modèles qui, sans avoir été l'objet d'un compte rendu détaillé, furent examinés dans le cadre de cette étude.

Abstract. A game theoretic model of the relationship between an information evaluator and a decision maker is formulated, and interdependence analysis is employed to decompose the game into several components. Each of these components represents one aspect of the interdependence relationship experienced by the information evaluator and decision maker. The analysis is then employed to distinguish among game forms. Résumé. Un modèle de la théorie des jeux établissant une relation entre un évaluateur d'informations et un décideur est proposé, et l'analyse d'interdépendance est utilisée afin de décomposer le jeu en plusieurs parties. Chacune de ces composantes représente une facette de la relation d'interdépendance vécue par l‘évaluateur d'informations et le décideur. Par la suite, l'analyse sert à établir une distinction parmi les “formes de jeu”.

The evidence in this paper suggests that downgrades by both Moody's and Standard and Poor's are associated with negative abnormal stock returns in the two-day window beginning the day of the press release by the rating agency. Significant negative abnormal performance can still be detected after eliminating observations containing obvious concurrent (potentially contaminating) news releases. There is little evidence of abnormal performance on announcement of an upgrade. Significant abnormal returns are associated with announcements of additions to the Standard and Poor's Credit Watch List, if either a potential downgrade or a potential upgrade is indicated.

This paper reviews the theory and evidence on the process by which corporations raise debt and equity capital and the associated effects on security prices. Findings from related transactions are used to test hypotheses about the stock price patterns accompanying announcements of security offerings. Various contractual alternatives employed in security issues are examined; for example, rights or underwritten offers, negotiated or competitive bid, best efforts or firm commitment contracts, and shelf or traditional registration. Finally, incentives for underpricing new issues are analyzed.

Whereas previous analyses of criminal deterrence have focused on the effect of criminal enforcement on crime rates, this study analyzes the existence of compensating differentials for criminal pursuits. By analyzing the risk-rewards trade-off, this approach represents a more comprehensive test of the criminal deterrence hypothesis. The sample consisted of black inner-city youths who reported their crime participation, crime income, and self-assessed risks from crime. The risk premiums for the three principal adverse outcomes (arrest, conviction, and prison) constituted between one-half and two-thirds of all crime income on the average, providing strong support for the criminal deterrence hypothesis.

In this note we introduce a weak optimality condition for tests, called complete consistency. We argue that complete consistency is a more appropriate weak optimality condition for tests than is test consistency. Complete consistency is a testing analogue of estimator consistency. It is shown that a sequence of estimators is consistent, if and only if certain tests based on the estimators (such as Wald or likelihood ratio tests) are completely consistent, for all simple null hypotheses. The above notwithstanding, the relationship between consistent and completely consistent tests shows that test consistency is a relevant concept. Consistent tests can be used to show the existence of, and to construct, completely consistent tests. Further, completely consistent tests cannot be generated from nested families of inconsistent tests.